Sep. 13--If the worst recession since the Great Depression really is over, manufacturers can exhale and begin looking for early signs of improvement in their markets.

Not that robust expansion is necessarily just around the corner, economists say. The hangover of the recession, such as unemployment and tight financing, is expected to linger.

"The rain is over but now we've got to wait for the flood to ebb," said Russell Kashian, an economics professor at the University of Wisconsin-Whitewater. "We're probably at the bottom and we're going to start going up, but it's going to take a while."

Some manufacturers can expect to see business pick up, and many already have seen hefty increases in their stock prices since the March lows -- an indication that investors see recovery on the horizon.

"Stocks have done far better than the fundamentals," said John Collopy, director of research for Brigg-Ficks Securities LLC in Milwaukee.

Depending on how they fit in with the economy and government stimulus, some Wisconsin publicly traded manufacturers may be positioned for growth. For example, companies linked to the automotive industry could see their fortunes rise through the end of this year and into 2010, said Kent Mortensen, senior equity research analyst with Thrivent Investment Management in Appleton.

A boost from 'clunkers'

"This 'cash for clunkers' program, although the demand isn't sustainable, did clear out a lot of excess inventory," Mortensen said. "In fact, a number of auto dealers are actually short of inventory right now. So they are going to have to start ramping up production in the third and fourth quarter, and that's certainly got to help overall manufacturing activity."

Mortensen said that should be good for Glendale's Johnson Controls Inc., which makes automotive interiors, batteries and building controls.

Johnson Controls also stands to benefit from the federal government's emphasis on reducing the country's dependence on oil and curbing air pollution. This month, Johnson Controls secured a $299 million grant to build lithium-ion batteries for hybrid vehicles at a Michigan factory. The Department of Energy is steering $2.4 billion toward advanced batteries.

As the wheels of manufacturing begin to turn once again, one likely beneficiary is Regal Beloit Corp., a maker of gears and motors.

"They have some interesting products," Mortensen said.