Region Looks Good in Annual Survey

The results of the annual First Business Economic Survey of northeast Wisconsin were released on Dec. 2. Each fall, First Business takes the pulse of local businesses through an annual economic survey in northeast Wisconsin, Dane County and Milwaukee. The survey focuses on the current year’s actual and next year’s predicted sales revenue, total operating costs, capital expenditures, profitability, number of employees, changes in wages, and changes in pricing.

First Business has annually underwritten the survey to help business owners achieve a broad-based and up-to-date understanding of the local business climate, which includes information that can be used in planning for the coming year.

“I knew the results would be positive,” commented Mickey Noone, president of the northeast region of First Business Bank, “but it surprised me just how positive they were. Businesses in northeast Wisconsin are reporting record-level sales and profitability, and coupling that with strong optimism about 2015. They’re reporting further increases in sales, profits, hiring, and wages. The outlook for 2015 is strongly optimistic.”

A summary of the Northeast Wisconsin findings released at the New North Summit includes:

• A significantly higher percentage of businesses, 64 percent in 2014, reported increased sales revenue, compared to 51 percent in 2013.

• The percentage of northeast Wisconsin businesses reporting increased profitability went up significantly, from 39 percent in 2013 to 54 percent in 2014. Businesses targeting the region also reported a significant increase in profitability, from 40 percent in 2013 to 61 percent in 2014. A significantly lower percentage of businesses in each of the target segments reported a decrease in profitability in 2014.

• A slightly higher percentage of companies reported increased Operating Cost in 2014.

• While not significant, the percentage of businesses reporting an increased capital expenditure went up to 42 percent in 2014 from 39 percent in 2013.

• The percentage of northeast Wisconsin businesses reporting an increase in number of employees saw a statistically significant increase to 50 percent in 2014 from 23 percent in 2013.

• At least 60 percent within all sectors reported increased wages in 2014, while 52 percent of all businesses reported an increase in pricing.

• Forty-one percent of businesses reported capacity at 90 percent or higher in 2014 compared to just 31 percent in 2013; a statistically significant increase.

• A record high 95 percent of businesses project better performance in 2015, projecting overall a positive outlook for next year.

Download the full First Business Economic Survey Report at firstbusiness.com/survey.