(WisBusiness) THURS News Summary — 4 Dec. 2008

From WisBusiness.com …

— Kohl’s Corp. reported today that total sales for November decreased 13.7 percent from the same time period a year ago. On a comparable store basis, sales decreased 17.5 percent.

Total year-to-date sales decreased 0.9 percent over the comparable prior year period. On a comparable store basis, year-to-date sales decreased 7.7 percent.

Kevin Mansell, Kohl’s president and chief executive officer, commented, “November sales results were as expected, affected by both lower traffic than last year, and a significant sales shift due to a later Thanksgiving. Post-Thanksgiving results have been significantly stronger than our prior trend, driven by planned strong promotion.

See the Kohl’s press release: http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsId=20081204005158

— With a thriving computer science program at the University of Wisconsin, Gov. Jim Doyle said it’s no surprise that Google decided to locate its first state office in Madison.

Doyle said he was only half kidding when he told the gathering, “I’m looking forward to the day when we’re here and Google announces they’re moving their corporate headquarters” to Madison.

Doyle, U.S. Rep. Tammy Baldwin, Madison Mayor Dave Cieslewicz and UW Chancellor Biddy Martin were among the dignitaries Wednesday night to welcome the Internet search company at the opening of its data center at 301 Blount St. The office will also act as an operational site for regional commerce.

See more on the event: http://www.wisbusiness.com/index.iml?Article=142802

— Doyle also discussed the condition of the state’s budget, saying he would be reluctant to roll back the repeal of tax cuts on Social Security income, medical insurance premiums and child care costs, because there would be “fairer” ways to raise revenues.

While Doyle said “everything’s on the table,” he can’t see a scenario in which the state would go back on its repeal of the tax on Social Security. The governor has said he would only look at raising revenues through an income tax surcharge or an increase in sales tax as a last resort, and said he is still scanning the budget for cuts.

“I think the real challenge now is to first see where do you really go to the point you can’t go any further with the cuts. Where do you go where you’re not willing to take that next step of really devastating the schools or really making tuition at the university go to levels that people can’t even afford. We’ve got some work to do to get to that level, so we’ll see,” he said.

Read more in the WisPolitics Budget Blog: http://blogs.wispolitics.com/2008/12/despite-deficit-doyle-says-tax-cuts.html

— Despite troubling economic times, real estate executives during a Milwaukee panel discussion said that areas along Interstate 94 south and west of Milwaukee will likely see continued commercial development.

According to John McCardle, senior vice president with NAI-MLG Commercial, a global commercial real estate firm with offices in Milwaukee, the majority of growth should come in the south corridor of Interstate 94 near the Wisconsin-Illinois border, pending a highway expansion that would add two lanes.

“It’s our market, we should take it,” McCardle said Wednesday, referring to need for Wisconsinites to take advantage of opportunities in the area, even as people from Chicago and Illinois are already doing the same.  

Contrary to popular belief, McCardle also said there is plenty of commercial real estate activity in the city. But, in reference to a pending city-wide paid sick leave requirement, McCardle said a number of Milwaukee’s commercial tenants are showing a desire to relocate outside of the city to avoid falling within the ordinance’s jurisdiction.

Read more from the panel discussion: http://www.wisbusiness.com/index.iml?Article=142803

— Dane County businesses continued to feel the effects of an economic downturn, and business owners are pessimistic about prospects for 2009, according to a report released today by First Business Bank.

The First Business Economic Survey of Dane County, sponsored by First Business Bank-Madison and the UW-Madison School of Business, showed that all business sectors reported declines in seven primary economic indicators. Hardest hit was the service industry, where 28 percent of businesses reported a decrease in employees.

In addition, 44 percent of businesses, the highest level in the survey’s history, reported that they were unable to meet expectations for 2008, and that trend is expected to continue in 2009.

See more on the survey: http://www.wisbusiness.com/index.iml?Article=142782

— Wisconsin’s large manufacturers are more likely than small firms to be engaged in some “next generation” practices that will help them reach world-class performance levels, according to a new study released by the Wisconsin Manufacturing Extension Partnership.

It concluded that Wisconsin’s smallest manufacturers (those with less than $10 million in annual sales) are more likely to face challenges in achieving world-class performance, although there are areas — like sustainability — where smaller companies can more easily excel. While the study showed some disparities between large and small companies, it also showed that firms of any size could follow strategies to become world class.

“For firms that implement these strategies, they get great results,” Mike Klonsinski, the executive director of WMEP, said Wednesday. “This says to us that you are not precluded from winning because you are small. Small manufacturers are less likely to start the efforts and large companies tend to be more out-front in pursuing these strategies.”

A key finding of the study is that top-performing Wisconsin firms are focused on deploying tactics and strategies consistent with Next Generation Manufacturing. But there are concerns about state manufacturers who aren’t engaged in change or transformation, as well as firms that recognize the importance of next generation strategies but are unable or unwilling to act.

See more: http://www.wisbusiness.com/index.iml?Article=142750

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