MONROE - It may be trying to find its equilibrium yet, but Green County's economy is steady, according to the latest survey conducted by the Green County Development Corporation (GCDC).
The survey showed local employers are hopeful but still cautious about the future of their business and the economy.
"Definitely cautious," said Anna Schramke, executive director of GCDC. "Employers are doing OK."
This is the third year in a row for the survey, which helps GCDC "to keep a finger on the pulse of Green County," Schramke said.
The survey was sent last winter to 131 CEOs of the county's larger employing companies in manufacturing, agriculture and food processing, finance, health care and commercial retail. About 30 percent of those surveys were returned. Results were presented at a GCDC breakfast for CEOs Friday, May 4.
The results did not show great swings in business reactions or CEOs' perceptions compared with the previous year.
"Nothing new jumped out," Schramke said. "Nothing stood out - no red flags, no green flags, or cautions."
Whether companies are just being economically cautious or politically wary is unknown. The results of the gubernatorial recall election Tuesday, June 5 may have a bearing on some employers' plans, Schramke indicated.
"I've spoken with people and some things could be on the drawing board," Schramke said.
Keeping new and current employers in Wisconsin is a challenge for Monroe, she added.
Employers wanting to expand or relocate may like the Green County region for a variety of reasons, but when it comes down to specifics, firms will chose a community that comes the closest to meeting the needs of the business, even if it means crossing the state border.
"Illinois is a part of our region," she said. "A lot of people work in northern Illinois and shop in Monroe. Monroe is a shopping center, and we don't want to lose that either."
Schramke said the nation keeps hearing that there is not enough financing from banks to help businesses, but her survey challenges that perception.
"Banks do seem to be meeting the needs of the businesses that responded," Schramke said. In fact, 95 percent of respondents gave a thumbs-up on the availability of sufficient financial resources, a slight decrease from 2010 when 100 percent of respondents agreed.
The perception of Green County's economy shifted in 2011 compared to 2010. More employers saw the county's economy as good, 39 percent as compared to 17 percent the previous year. Fewer saw it as poor, dropping from 12 percent to 3 percent, or as fair, dropping from 71 percent to 58 percent. None have considered it excellent yet.
Schramke said she was saddened to see the survey respondents' view of the U.S. economy, as the respondents held fast to their 2010 views of it. Just 8 percent, the same as in 2010, saw the U.S. economy as good. About 68 percent said it was fair and 24 percent said poor. That represents a minor optimistic shift of 5-6 percent from 2010, when 29 percent said it was poor and 62 percent said it was fair. No respondents thought it was excellent.
"If you're producing a good that is shipped nationwide, you have a pretty good idea (what the national economy is doing), based on where your sales are," Schramke said.
However, firms' personal economies are improving, said the local CEOs. Thirteen percent said their balance sheets were now excellent, compared to only 4 percent the year before. The respondents who said personal economies were good dropped from 54 to 45 percent. The percentage of those who said personal economies were fair (37 percent) or poor (5 percent) remained about the same as the previous year.
CEOs responded to the survey question about their company's sales and costs with equally good news. Thirty-two percent said they had been more profitable than expected in 2011 - almost three times as high as those who said sales were less and costs higher than expected (11 percent). In between, 22 percent said higher costs tracked better revenues, and another 22 percent said they reduced spending while sales fell.
Between 50 and 75 percent of the CEOs predicted revenues and expenses and staffing would stay about the same in the 90 days following the survey. Schramke called this the "hopeful middle."
To steady that hopefulness, they may have looked to their suppliers' and customers' plans to change - or rather, not change. Nearly 90 percent said their suppliers were not looking to expand operations, about the same as in 2010. About 68 percent said their customers or clients were not expanding operations, but 90 percent said client/customers were not at risk of shutting down either.
Because of the change in composition of the survey respondents, the differences between years should not be considered solid local trends, but the results are a snapshot of the economy.
The 2010 survey results were weighted more heavily on manufacturing and food processing sectors, as eight manufacturers made up 35 percent of the respondents and food processors made up 22 percent; together representing 57 percent of the total 23 respondents.
In 2011, eight manufacturers were still the majority of respondents, but made up just 22 percent of the 37 total respondents. Respondents from the food processing and the financial industry sectors made up 19 percent each. The agriculture sector and the information, professional and business services sector each came in with 14 percent of the total.
The survey showed local employers are hopeful but still cautious about the future of their business and the economy.
"Definitely cautious," said Anna Schramke, executive director of GCDC. "Employers are doing OK."
This is the third year in a row for the survey, which helps GCDC "to keep a finger on the pulse of Green County," Schramke said.
The survey was sent last winter to 131 CEOs of the county's larger employing companies in manufacturing, agriculture and food processing, finance, health care and commercial retail. About 30 percent of those surveys were returned. Results were presented at a GCDC breakfast for CEOs Friday, May 4.
The results did not show great swings in business reactions or CEOs' perceptions compared with the previous year.
"Nothing new jumped out," Schramke said. "Nothing stood out - no red flags, no green flags, or cautions."
Whether companies are just being economically cautious or politically wary is unknown. The results of the gubernatorial recall election Tuesday, June 5 may have a bearing on some employers' plans, Schramke indicated.
"I've spoken with people and some things could be on the drawing board," Schramke said.
Keeping new and current employers in Wisconsin is a challenge for Monroe, she added.
Employers wanting to expand or relocate may like the Green County region for a variety of reasons, but when it comes down to specifics, firms will chose a community that comes the closest to meeting the needs of the business, even if it means crossing the state border.
"Illinois is a part of our region," she said. "A lot of people work in northern Illinois and shop in Monroe. Monroe is a shopping center, and we don't want to lose that either."
Schramke said the nation keeps hearing that there is not enough financing from banks to help businesses, but her survey challenges that perception.
"Banks do seem to be meeting the needs of the businesses that responded," Schramke said. In fact, 95 percent of respondents gave a thumbs-up on the availability of sufficient financial resources, a slight decrease from 2010 when 100 percent of respondents agreed.
The perception of Green County's economy shifted in 2011 compared to 2010. More employers saw the county's economy as good, 39 percent as compared to 17 percent the previous year. Fewer saw it as poor, dropping from 12 percent to 3 percent, or as fair, dropping from 71 percent to 58 percent. None have considered it excellent yet.
Schramke said she was saddened to see the survey respondents' view of the U.S. economy, as the respondents held fast to their 2010 views of it. Just 8 percent, the same as in 2010, saw the U.S. economy as good. About 68 percent said it was fair and 24 percent said poor. That represents a minor optimistic shift of 5-6 percent from 2010, when 29 percent said it was poor and 62 percent said it was fair. No respondents thought it was excellent.
"If you're producing a good that is shipped nationwide, you have a pretty good idea (what the national economy is doing), based on where your sales are," Schramke said.
However, firms' personal economies are improving, said the local CEOs. Thirteen percent said their balance sheets were now excellent, compared to only 4 percent the year before. The respondents who said personal economies were good dropped from 54 to 45 percent. The percentage of those who said personal economies were fair (37 percent) or poor (5 percent) remained about the same as the previous year.
CEOs responded to the survey question about their company's sales and costs with equally good news. Thirty-two percent said they had been more profitable than expected in 2011 - almost three times as high as those who said sales were less and costs higher than expected (11 percent). In between, 22 percent said higher costs tracked better revenues, and another 22 percent said they reduced spending while sales fell.
Between 50 and 75 percent of the CEOs predicted revenues and expenses and staffing would stay about the same in the 90 days following the survey. Schramke called this the "hopeful middle."
To steady that hopefulness, they may have looked to their suppliers' and customers' plans to change - or rather, not change. Nearly 90 percent said their suppliers were not looking to expand operations, about the same as in 2010. About 68 percent said their customers or clients were not expanding operations, but 90 percent said client/customers were not at risk of shutting down either.
Because of the change in composition of the survey respondents, the differences between years should not be considered solid local trends, but the results are a snapshot of the economy.
The 2010 survey results were weighted more heavily on manufacturing and food processing sectors, as eight manufacturers made up 35 percent of the respondents and food processors made up 22 percent; together representing 57 percent of the total 23 respondents.
In 2011, eight manufacturers were still the majority of respondents, but made up just 22 percent of the 37 total respondents. Respondents from the food processing and the financial industry sectors made up 19 percent each. The agriculture sector and the information, professional and business services sector each came in with 14 percent of the total.