For more information contact:
Jodie Johnson
Assistant Vice President – Marketing
First Business Financial Services, Inc.
Phone 920-734-1800 – jjohnson@firstbusiness.com
APPLETON, WI – December 18, 2008 – Despite the 2008 economy, most Northeast Wisconsin businesses are optimistic about 2009, according to a report to be released Thursday afternoon by First Business Bank, the University of Wisconsin – Oshkosh, Insight Publications, and the A.C. Nielsen Center of Marketing Research at the invitation-only First Business Economic Forum. The Forum will be held at the Butte des Mortes Country Club from 4 p.m. to 6 p.m. on December 18.
The survey, sent in September and October 2008 to 7,500 CEOs, CFOs, presidents, and business owners in Northeast Wisconsin, asked questions regarding eight key economic indicators: sales revenue, profitability, total operating costs as a percentage of revenue, capital expenditures, number of employees, overall wage change, change in pricing, and operating capacity. The survey also asked questions regarding changes in expenses, and the impact of the housing market slowdown.
“This is the first year we’ve done this type of survey in Northeast Wisconsin. I feel the Northeast business climate differs from the rest of the State, and it is valuable to research and report on key economic indicators in our local economy,” stated Mickey Noone, President of First Business Bank – Northeast.
On Thursday, Dr. E. Alan Hartman, a member of the UW – Oshkosh faculty since 1976 and Dean of the College of Business, will present the key findings. Highlights include:
* All sectors showed an increase in wages, but the Manufacturing sector showed the most and expected the most in 2009.
* The Manufacturing sector had more companies decreasing employment than increasing, and Technology and Retail had more companies increasing than decreasing employment in 2008.
* Service and Manufacturing sectors are more likely to increase employment in 2009.
* While all sectors had more businesses with an increase in sales revenue than a decrease, those businesses with markets outside of Wisconsin did better in 2008.
* All sectors have more businesses expecting revenue increases than decreases, but those sectors serving international markets are most optimistic for 2009.
* Actual results for 2008 across the sectors typically showed the same number of companies increased profitability as decreased, but all sectors have more companies projecting an increase in profitability than those projecting decreases for 2009.
* All sectors showed more companies increasing prices in 2008, and projecting to do so in 2009.
* A few companies exceeded expectations in 2008, but most expect 2009 to be better.
“It is important to note that commodity and fuel prices have dropped quite a bit since the survey took place. This decrease in costs may mean we’re at the bottom and can expect greater profitability in 2009,” stated Dr. E. Alan Hartman, Dean at the University of Wisconsin – Oshkosh.
A roundtable discussion will follow the presentation with scheduled participants:
* John Bykowski – President and CEO of SECURA Insurance
* Mary Wettstein – Vice President – Fox Valley of QTI Professional Staffing, Inc
* Tom Scheuerman – Managing Broker and Principal of Grubb & Ellis|Pfefferle
* Corey Chambas – President & CEO of First Business Financial Services, Inc.
First Business Bank has been conducting similar economic surveys in Dane County for the past six years. This is the first year the survey was conducted in the Northeast market. The local survey was based on the responses of 790 businesses. The sample size has an error range of less than .05 and a confidence level of 95 percent. Full survey results will be available under “Featured Links” at http://www.firstbusiness.com after 2 p.m. today.
About First Business Bank – Northeast
First Business Bank – Northeast is headquartered at 3913 W. Prospect Avenue in Appleton. In addition to offering commercial loan products, First Business Bank – Northeast offers a full line of deposit, investment, and equipment finance products through its affiliates First Business Bank – Madison and First Business Trust & Investments, including remote deposit, treasury management products, Internet banking, retirement plans, investment management services, trust services, asset-based lending, and equipment finance and leasing. For additional information, visit http://www.firstbusiness.com/northeast or call 920-734-1800.
