ECONOMIC OUTLOOK BREAKFAST

Transcription

1 2016 Fox Cities ECONOMIC OUTLOOK BREAKFAST Tuesday February 9, :00am - 9:00am business intelligence: MADE BETTER HERE

2 ECONOMIC OUTLOOK SURVEY table of contents PRESENTING SPONSOR: CONTRIBUTING SPONSORS: METHODS AND EXPLANATION 1 YEARLY COMPARISONS Respondent Composition 2 Reported Sales & Profits 3 Employment & Investment 4 Economic Vitality 6-7 Salary Increases 8 Recruitment 9 Business & Life Here 10 Growth Forecast 11 Sales & Profits Projections 12 Employment & Salary Projections 13 Local Economy Projection 14 YOUR HOSTS: NATIONALLY COLLECTED DATA Industry Growth 15 A DIVISION OF SURVEY QUESTIONS & RESPONSES Survey Questions and Responses Fox Cities Regional Partnership Investors 17 FoxCitiesRegionalPartnership.com

3 2016 Economic Outlook Survey methods & explanation The 2016 Fox Cities Regional Employer Survey was conducted in early January and included the participation of 202 firms located in Outagamie, Calumet and the northern portion of Winnebago Counties. Respondents fell within the following categories: Survey results do not represent a statistically valid sample, but are intended to provide some barometer of sentiment within a portion of our regional job base. INDUSTRY CATEGORIES MFG Manufacturing F.I.R.E Financial Insurance Real Estate TRADE Wholesale Trade Retail Trade SERVICE Professional, Scientific, and Technical Services Administrative and Support, and Waste Management and Remediation Services Health Care and Social Assistance Accommodation and Food Services Other Services (except Public Administration) OTHER Construction Public Administration Transportation and Warehousing Arts, Entertainment, and Recreation Educational Services Information/Media Utilities Non-Profit FoxCitiesRegionalPartnership.com page 1

4 Yearly Comparisons: RESPONDENT COMPOSITION notes: page 2 FoxCitiesChamber.com

5 Yearly Comparisons: SALES & PROFITS selected respondent comments: (In 2015 we) did well with our current high performers. Growth in new customers and growth of existing customers (drove 2015 growth). Our (2015) income was 2.5 times greater than that of was a good year, but 2014 was a fantastic year for us, which may be hard to repeat. We made several strategic decisions that allowed us to save money and be more profitable (in 2015). FoxCitiesRegionalPartnership.com page 3

6 Yearly Comparisons: EMPLOYMENT & INVESTMENT selected respondent comments: (It has been) difficult to fill open positions on plant floor. We are hiring from within preparing for some upcoming retirements, will back up with several entry-level hires in We added the equivalent of about 1 FT position by increasing hours of part-time positions and dropping a part-time employee and filling that position with a full-time person. Our capital investment will be in replacing aging equipment. We are in the middle of a building expansion that started in late 2015 and expect to be in our new expansion sometime in February page 4 FoxCitiesChamber.com

7 Local connection to endless opportunities. Providing seamless access to our network of experts across the firm, your Wisconsin-based banker brings you proactive insight, tailored financial solutions and personalized service to meet your growing needs. Your local team is invested in you, your business and our community. Visit us at to learn more JPMorgan Chase Bank, N.A. Member FDIC. Chase is a marketing name for certain businesses of JPMorgan Chase & Co. and its subsidiaries (collectively, JPMC ) FoxCitiesRegionalPartnership.com page 5

8 Yearly Comparisons: RATING: ECONOMIC VITALITY Experienced Team of Business Banking Professionals Chris Allen Gary Brum Chris Cumicek Rick Ripley Appleton Area Green Bay & Lakeshore Area page 6 FoxCitiesChamber.com

9 Yearly Comparisons: RATING: ECONOMIC VITALITY Comparison of Local & National Vitality - Excellent/Good selected respondent comments: notes: Although I selected average (for national economic vitality), it is a concern that middle class wages are stagnant and many people are underemployed and/or working several jobs to make ends meet... Each person is different, but generally things are looking up (nationally). You need to remember that bad news sells airtime... Some sectors doing extremely well, but not across the board. (Retail & service) small businesses have not participated in the recovery to date. FoxCitiesRegionalPartnership.com page 7

10 Yearly Comparisons: TALENT: SALARY INCREASES notes: selected respondent comments: (Salary increases) depend on what the government comes up with for minimum wage and other new laws. (Salary increases will follow) contract with our union. Found many capable people who had abilities though needed to see more spark in the people I interviewed. (It) did not appear (interviewees were) motivated to make a difference. Certain information technology special/hot skills are difficult to acquire as well as financial customer service professionals. page 8 FoxCitiesChamber.com

11 Yearly Comparisons: TALENT: RECRUITMENT GIVE YOUR HR DEPT AN EDGE! A DIVISION OF LOCALLY COLLECTED DATA Survey Data From FOX CITIES Companies extensive info on salary and benefits being offered locally over 200 companies from Fond du Lac to Green Bay participate discounted cost for SHRM or Chamber members FoxCitiesRegionalPartnership.com/WageSurvey WHERE STUDENTS, EDUCATORS AND BUSINESSES CONNECT, COMMUNICATE AND COLLABORATE Can your company help shape tomorrow s Fox Cities workforce? youth apprenticeships job shadows in-class presentations internships informational interviews YOUR FUTURE FOX CITIES.COM FoxCitiesRegionalPartnership.com page 9

12 Yearly Comparisons: RATING: BUSINESS & LIFE notes: WHERE HOME BEGINS! #1 Coldwell Banker real estate group in the nation THE REAL ESTATE GROUP, INC. (800) page 10 FoxCitiesChamber.com

13 Yearly Comparisons: FORECASTS: GROWTH Comparison: 2015 Forecast to Actual LOCAL GOVERNMENT PRIVATE COMPANIES FUNDING: Our investors provide support based on their commitment to the economic growth of the community, understanding that when development efforts are successful they will benefit both directly and indirectly. SUPPORT FOR EMPLOYMENT GROWTH: We assist existing Fox Cities primary employers to encourage expansions and hiring, as well as market the Fox Cities Region globally to recruit new business to the area. Comparison: 2015 Forecasts vs Forecasts EXISTING INDUSTRY RETENTION/EXPANSION NEW INDUSTRY ATTRACTION INFUSION OF OUTSIDE $$$ INTO THE AREA: As new wages circulate through our local retail, service, professional, government and non-profit sectors; our regional economy benefits. BANKS TAXES RETAIL SERVICES NON-PROFIT HIGHER STANDARD OF LIVING FoxCitiesRegionalPartnership.com FoxCitiesRegionalPartnership.com page 11

14 2016 Projections: SALES & PROFITS notes: page 12 FoxCitiesChamber.com

15 2016 Projections: EMPLOYMENT & SALARY selected respondent comments: Sales and Profits: Had an exceptional year, (we) do not anticipate the gross sales in 2016 to be as high due to (abnormally high) sales in As sales go, profit will keep track with growth. Employees and Salary: (We will hire) if we can find people. We are looking to add several new agents to support our rapidly growing business. Hard to find those willing to work. Fox Cities April 23, 2016 FoxCitiesRegionalPartnership.com page 13

16 2015 Projections: LOCAL ECONOMY notes: selected respondent comments: It will be a difficult year with all the politics getting in the way, and the economy looks to stall in some areas, grow in others. Hard to put a tag on this one, other than it will be a wild ride but end up at the same point next year. The economy is back to where it was before the Great Recession. Unfortunately, we see much of our business moving to the internet rather than our boutique. The local economy seems to be heating up, so we would like to see more Shop Local campaigns. page 14 FoxCitiesChamber.com

17 Nationally Collected Data: INDUSTRY SPREAD FoxCitiesRegionalPartnership.com page 15

18 A DIVISION OF The Fox Cities Regional Partnership is a not-for-profit, public-private partnership that helps to attract, retain and grow primary jobs for the Fox Cities Region. Thanks to the financial support of more than 50 local investors, the Regional Partnership provides key services and support to companies at no cost via three main programs: Industry Retention/Expansion We work with primary employers in the region, providing support and access to resources needed to grow stronger and more competitive and in the process, position them to grow more jobs. Industry Attraction We market the Fox Cities Region of Calumet, Outagamie and the northern portion of Winnebago Counties externally, in order to attract new primary employers to the area. Talent Attraction We attract in-demand talent to the area, bringing university students from around the Midwest to tour our community and interact with regional employers. TARGETED INDUSTRIES PROJECTED GROWTH + HIGHER THAN AVERAGE WAGES + COMPETITIVE ADVANTAGES = FOX CITIES WEALTH ADVANCED MANUFACTURING PACKAGING PAPER ELECTRONICS SPECIALTY MACHINERY QUALITY BUSINESS SERVICES INSURANCE FINANCE ENGINEERING ARCHITECTURAL FOOD & BEVERAGE PROCESSING DAIRY / CHEESE GRAINS FROZEN FOODS CANNED GOODS TRANSPORTATION EQUIPMENT HEAVY TRUCKS AEROSPACE MILITARY EMERGENCY EQUIPMENT page 16 FoxCitiesChamber.com

19 A DIVISION OF INVESTORS DO YOU SUPPORT FOX CITIES ECONOMIC DEVELOPMENT? GOVERNORS CIRCLE LEADERSHIP CIRCLE INVESTORS CIRCLE SUPPORTERS CIRCLE American National Bank Fox Cities Consolidated Construction Co. Inc. Bank of Little Chute First National Bank Fox Valley Business Lending Group Innovative Machining City of Appleton Garrow Oil Corp. CopperLeaf Boutique Hotel and Spa Great Northern Corporation Nordon Business Environments Martenson & Eisele Outagamie County Prospera Credit Union Time Warner Cable Town of Buchanan Town of Grand Chute Town of Greenville Village of Hortonville Winnebago County The following organizations provide Fox Cities Regional Partnership with specific tools to stimulate industry growth FoxCitiesRegionalPartnership.com page 17

20 2015 Economic Outlook Survey: QUESTIONS & RESPONSES Some figures may not sum due to rounding. Manufacturing Service Trade (Retail, Wholesale, Trade) F.I.R.E. (Finance, Insurance, Real Estate) Other (Construction, Information, Public, etc.) Total Respondents % Of Respondents 25% 25% 15% 15% 20% 100% Employees % of Employees 31% 11% 5% 23% 29% 100% 1. Was your firm s 2015 Fox Cities employment... Firms ahead of 2014 same as 2014 behind 2014 not applicable MFG 36 72% 9 18% 4 8% 1 2% Service 24 47% 17 33% 6 12% 4 8% SURVEY CONDUCTED BY: Trade 14 45% 16 52% 0 0% 1 3% F.I.R.E % 10 33% 3 10% 1 3% Other 18 45% 17 43% 3 8% 2 5% Overall % 69 36% 16 7% 9 4% A DIVISION OF 2. How would you rate the availability of qualified workers in the Fox Cities area? excellent good average below average poor not applicable MFG 1 2% 14 28% 20 40% 12 24% 3 6% 0 0% Service 3 6% 8 16% 22 43% 9 18% 7 14% 2 4% Trade 4 13% 15 48% 5 16% 5 16% 2 6% 0 0% F.I.R.E. 3 10% 13 43% 9 30% 4 13% 0 0% 1 3% Other 4 10% 13 33% 19 48% 3 8% 1 3% 0 0% Overall 15 8% 63 34% 75 35% 33 16% 13 6% 3 1% 3. Was your 2015 gross sales activity Were your 2015 profits... ahead of 2014 same as 2014 behind 2014 not applicable MFG 39 78% 5 10% 6 12% 0 0% Service 34 67% 4 8% 8 16% 5 10% Trade 25 81% 5 16% 1 3% 0 0% F.I.R.E % 1 3% 2 7% 3 10% Other 17 43% 7 18% 4 10% 12 30% Overall % 22 11% 21 10% 20 10% ahead of 2014 same as 2014 behind 2014 not applicable MFG 34 68% 5 10% 11 22% 0 0% Service 31 61% 8 16% 7 14% 5 10% Trade 25 81% 3 10% 3 10% 0 0% F.I.R.E 22 73% 3 10% 3 10% 2 7% Other 13 33% 7 18% 5 13% 15 38% Overall % 26 13% 29 14% 22 11% page 18 FoxCitiesChamber.com

21 2016 Economic Outlook Survey: QUESTIONS & RESPONSES 5. During what was the average percentage change in salary for your Fox Cities employees? 0% 1% 2% 3% 4% 5% 6% > 6% commission na MFG 2 4% 1 2% 13 26% 18 36% 8 16% 5 10% 2 4% 0 0% 0 0% 1 2% Service 5 10% 4 8% 7 14% 15 29% 2 4% 4 8% 0 0% 5 10% 2 4% 7 14% Trade 4 13% 5 16% 9 29% 10 32% 0 0% 1 3% 0 0% 1 3% 0 0% 1 3% FIRE 0 0% 2 7% 7 23% 11 37% 1 3% 1 3% 0 0% 1 3% 4 13% 3 10% Other 3 8% 3 8% 13 33% 14 35% 1 3% 1 3% 0 0% 0 0% 0 0% 5 13% Overall 14 7% 15 8% 49 25% 68 34% 12 5% 12 5% 2 1% 7 3% 6 3% 17 8% 6. Turning now to 2016, do you anticipate local employment to... increase remain the same decrease not applicable MFG 30 60% 19 38% 1 2% 0 0% Service 22 43% 23 45% 5 10% 1 2% Trade 12 39% 17 55% 1 3% 0 0% FIRE 22 73% 8 27% 0 0% 0 0% Other 17 43% 20 50% 1 3% 2 5% Overall % 87 43% 8 4% 3 1% 7. What do you anticipate will be the average percentage change in salary for your Fox Cities employees? 0% 1% 2% 3% 4% 5% 6% > 6% commission na MFG 0 0% 2 4% 11 22% 24 48% 6 12% 4 8% 3 6% 0 0% 0 0% 0 0% Service 7 14% 2 4% 9 18% 16 31% 2 4% 5 10% 0 0% 2 4% 3 6% 5 10% Trade 1 3% 6 19% 11 35% 11 35% 1 3% 0 0% 0 0% 1 3% 0 0% 0 0% FIRE 0 0% 0 0% 9 30% 11 37% 2 7% 0 0% 0 0% 2 7% 3 10% 3 10% Other 1 3% 9 23% 13 33% 12 30% 1 3% 0 0% 1 3% 0 0% 0 0% 3 8% Overall 9 4% 19 10% 53 28% 74 36% 12 6% 9 4% 4 2% 5 3% 6 3% 11 5% 8. Do you expect your sales volume in 2016 to Do you expect your profits in 2016 to... increase remain the same decrease not applicable increase remain the same decrease not applicable MFG 39 78% 6 12% 5 10% 0 0% Service 34 67% 10 20% 4 8% 3 6% Trade 28 90% 3 10% 0 0% 0 0% FIRE 27 90% 1 3% 1 3% 1 3% Other 21 53% 7 18% 0 0% 12 30% Overall % 27 12% 10 4% 16 8% MFG 40 80% 7 14% 3 6% 0 0% Service 33 65% 11 22% 4 8% 3 6% Trade 26 84% 5 16% 0 0% 0 0% FIRE 24 80% 5 17% 1 3% 0 0% Other 13 33% 13 33% 0 0% 14 35% Overall % 41 20% 8 3% 17 8% FoxCitiesRegionalPartnership.com page 19

22 2016 Economic Outlook Survey: QUESTIONS & RESPONSES 10. Is your company planning a local expansion in 2016? yes no MFG 19 38% 31 62% Service 13 25% 38 75% Trade 6 19% 25 81% FIRE 6 20% 24 80% Other 13 33% 27 68% Overall 57 27% % 11. How would you rate the national economic vitality at the present time? excellent good average below average poor not applicable MFG 1 2% 18 36% 28 56% 3 6% 0 0% 0 0% Service 2 4% 17 33% 24 47% 5 10% 3 6% 0 0% Trade 0 0% 19 61% 7 23% 5 16% 0 0% 0 0% FIRE 0 0% 10 33% 17 57% 1 3% 2 7% 0 0% Other 2 5% 16 40% 14 35% 4 10% 3 8% 1 3% Overall 5 2% 80 41% 90 43% 18 9% 8 4% 1 1% 12. How would you rate the local economic vitality at the present time? excellent good average below average poor not applicable MFG 4 8% 34 68% 11 22% 1 2% 0 0% 0 0% Service 4 8% 23 45% 19 37% 5 10% 0 0% 0 0% Trade 2 6% 19 61% 5 16% 3 10% 1 3% 1 3% FIRE 2 7% 15 50% 12 40% 1 3% 0 0% 0 0% Other 0 0% 22 55% 17 43% 0 0% 0 0% 1 3% Overall 12 6% % 64 32% 10 5% 1 1% 2 1% 13. By the end of 2016, do you anticipate the Fox Cities economy will have... grown stabilized declined MFG 36 72% 14 28% 0 0% Service 20 39% 27 53% 4 8% Trade 22 71% 9 29% 0 0% FIRE 20 67% 9 30% 1 3% Other 25 63% 13 33% 2 5% Overall % 72 34% 7 3% page 20 FoxCitiesChamber.com

23 2016 Economic Outlook Survey: QUESTIONS & RESPONSES 14. Compared to other U.S. cities of similar size, how would you rate the Fox Cities as a place to do business? much better better about the same worse much worse not applicable MFG 3 6% 34 68% 11 22% 0 0% 0 0% 2 4% Service 7 14% 24 47% 20 39% 0 0% 0 0% 0 0% Trade 1 3% 18 58% 5 16% 5 16% 0 0% 2 6% FIRE 5 17% 17 57% 7 23% 0 0% 0 0% 1 3% Other 9 23% 18 45% 7 18% 4 10% 0 0% 2 5% Overall 25 12% % 50 24% 9 5% 0 0% 7 4% 15. Compared to other U.S. cities of similar size, how would you rate the Fox Cities as a place to live? much better better about the same worse much worse not applicable MFG 24 48% 23 46% 3 6% 0 0% 0 0% 0 0% Service 17 33% 25 49% 7 14% 1 2% 0 0% 1 2% Trade 8 26% 21 68% 1 3% 1 3% 0 0% 0 0% FIRE 13 43% 12 40% 5 17% 0 0% 0 0% 0 0% Other 23 58% 14 35% 2 5% 0 0% 0 0% 1 3% Overall 85 42% 95 48% 18 9% 2 1% 0 0% 2 1% 16. What do you like best about doing business in the Fox Cities? worker productivity availability of necessary talent/workforce cost of doing business proximity to markets proximity to suppliers Other MFG 22 44% 2 4% 11 22% 9 18% 3 6% 3 6% Service 11 22% 3 6% 15 29% 15 29% 0 0% 7 14% Trade 10 32% 2 6% 13 42% 4 13% 1 3% 1 3% FIRE 10 33% 4 13% 10 33% 3 10% 0 0% 3 10% Other 7 18% 10 25% 9 23% 8 20% 0 0% 6 15% Overall 60 30% 21 11% 58 30% 39 18% 4 2% 20 10% 17. What is your biggest challenge doing business in the Fox Cities? worker productivity availability of necessary talent/workforce cost of doing business proximity to markets proximity to suppliers Other MFG 1 2% 34 68% 4 8% 9 18% 0 0% 2 4% Service 3 6% 32 63% 3 6% 5 10% 1 2% 7 14% Trade 0 0% 11 35% 5 16% 9 29% 4 13% 2 6% FIRE 2 7% 18 60% 4 13% 2 7% 0 0% 4 13% Other 3 8% 17 43% 10 25% 3 8% 2 5% 5 13% Overall 9 4% % 26 14% 28 14% 7 4% 20 10% FoxCitiesRegionalPartnership.com page 21

24 A DIVISION OF FoxCitiesRegionalPartnership.com business resources: MADE BETTER HERE 800+ available sites & buildings in the Fox Cities financial incentives listing industry statistics workforce resources municipal contacts & profiles demographic information local wage & benefit data insight into local economic drivers commercial & industrial real estate regional business news & updates FREE customized solutions for your business FOLLOW US ON SOCIAL MEDIA FoxCitiesRegionalPartnership.com