THU AM News: Survey of bankers finds better outlook on Wisconsin’s economy; DBIA announces $3.5M in grant funding

December 12, 2024

— Bankers in Wisconsin view the state’s economy more favorably now than earlier this year, according to the latest executive survey from the Wisconsin Bankers Association.

The group’s latest Economic Conditions Survey of bank CEOs found 83% rate the state economy as good or excellent, up from 76% in the mid-year 2024 survey. At this point in 2023, 68% said Wisconsin’s economy was good or excellent.

In an even larger jump, 29% of respondents expect the state economy to grow over the next six months — well above the 8% expecting growth in the prior survey.

When asked about the prospects for business loans in the next six months, 41% said they expect demand for these loans to rise while just 3% expect it to weaken. In the prior survey, those figures were 8% and 26%, respectively.

Loan demand is projected to rise across a number of other categories, including commercial and residential real estate, and agriculture. All three had stronger expectations than in the past three surveys, reflecting a brighter outlook among bankers.

“As indicated in this survey, 2025 will likely see a growing number of individuals, families, and businesses looking to move ahead with their financial goals,” WBA President and CEO Rose Oswald Poels said in a statement on the results.

Still, this optimism about the state is tempered by shifting expectations around inflation. In the latest survey, 22% said they expect inflation to rise in the next six months, compared to 8% in the last survey. Still, no respondents said a recession is very likely in the next six months, a decline from 6% in the previous survey.

Respondents pointed to a number of “economic bright spots” in the survey, ranging from stable employment and consumer spending to the strength of key state industries including manufacturing, technology, tourism and residential construction.

But WBA notes bank CEOs still have concerns going into 2025 about inflation, interest rates, the high cost of living and businesses’ staffing challenges. Plus, bankers also said the impacts of the November presidential election “remain to be seen.”

The online survey was conducted Nov. 19-Dec. 6 with 59 respondents.

See the full survey results.

— The Dairy Business Innovation Alliance has announced more than $3.5 million in grants for dozens of dairy producers across the Midwest.

The alliance is a partnership between the Center for Dairy Research and the Wisconsin Cheese Makers Association. The groups say they received requests for more than $5.8 million in this round of grants, and ended up choosing 44 applicants for funding.

Funded projects include efforts to expand processing capacity, build new facilities, acquire machinery and equipment, launch new products and more.

“From product development and innovative plant efficiencies to new export initiatives, these projects funded by the DBIA impact not only the recipients, but the entire industry,” WCMA Executive Director John Umhoefer said in a statement.

Since being created in the 2018 Farm Bill, the USDA-funded DBIA has awarded more than $20 million through 250 grants to farms and other businesses in the region.

See the release.

— Wisconsin Tech College System President Layla Merrifield says WTCS is working on “professional development” around artificial intelligence.

At a Senate Universities and Revenue Committee informational hearing yesterday, Merrifield said Tech college faculty now must be knowledgeable of the use of industry-specific AI trends, which will “continue to evolve over time.”

“AI technology is shifting skills that are needed, and this economy and WTCS is preparing to be on the forefront of the adoption and integration of AI to generate the skilled workforce,” Merrifield said. “I think this is going to affect virtually every industry in the state.”

UW-Green Bay Chancellor Michael Alexander, who also spoke at the hearing, said there is no need for a major in AI at UW-Green Bay, but said all entrepreneurship classes at the school involve “some activity in this space.”

— NorthStar Medical Radioisotopes will provide a German biotech company called Ariceum Therapeutics with a rare material called Actinium-225 under a newly announced agreement.

The companies yesterday rolled out a supply agreement for the radioactive isotope, which Ariceum will use to “radiolabel” a proprietary material being developed for the treatment of various aggressive cancers. Radiolabeling can be used to track target molecules as they move through the body.

Ariceum’s compound — which has applications for treating small cell lung cancer, pancreatic cancers and others — is slated to enter clinical development soon in the United States as part of an international trial. That’s according to company CEO Manfred Rudiger.

In a statement on the agreement, he touts Beloit-based NorthStar’s “industry leadership and commercial expertise” in advanced radioisotope production technology, calling the company a reliable partner for meeting the company’s supply needs.

“In partnership with NorthStar, we look forward to progressing our clinical studies with Ac-225 and accelerating our future commercialization opportunities as we seek to deliver targeted theranostic treatments for patients,” Rudiger said.

Frank Scholz, president and CEO of NorthStar, calls Ariceum’s early trial results “very exciting” given their implications for helping patients with difficult-to-treat cancers.

He says NorthStar aims to reduce concerns about availability for Ac-225 for both clinical trials and patient medicines, noting they have “held back exploration of powerful new pathways to attack these diseases for the millions of patients who today have limited treatment options available.”

See more in the release.

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— The USDA has announced $32 million in new funding for rural water and electricity infrastructure in the state.

Vernon Electric Cooperative in Vernon County is getting a $24.2 million loan to build and improve 203 miles of line, expected to connect 801 consumers. The loan includes about $2 million in “smart grid” technologies, the announcement shows.

Meanwhile, the city of Rhinelander in Oneida County is getting a $5.2 million loan and $1.3 million grant to improve water mains and sanitary and storm sewers. A project overview from the agency notes the existing system is between 30 and 50 years old and plagued by “numerous” sewer backups.

And the village of Lyndon Station in Juneau County is getting a $1.6 million loan to upgrade its sewer collection and lift station system. The project, which aims to meet a phosphorus requirement from the state Department of Natural Resources, includes biological and chemical removal of the chemical as well as a sludge treatment and disposal system.

These projects are part of a $6.3 billion round of funding announced by the USDA.

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