Dane County businesses expect a bright future in 2005

Results of the just-released Dane County Economic Survey forecast a strong economic outlook for 2005.

The Dane County Economic Survey, conducted by the A.C. Nielsen Center for Marketing Research between September and November, took the pulse of 389 respondents in the business community. The survey was sent to the chief executive officers, chief financial officers, presidents or owners of Dane County businesses with five or more employees. Companies targeted represent a broad spectrum of business sectors.

“We’re very pleased to once again provide the survey with First Business Bank. We think the Dane County economy is unique and deserves this kind of focus. The findings show the Dane County economy is very strong in both actual results and expectations of future performance by company CEOs,” says Ted Beck, associate dean of executive education and corporate relations for the School of Business.

The survey revealed that more companies are expecting to increase their workforce and fewer businesses are expected to decrease their number of employees.

Additional key findings from the survey include:

• Sales revenue: 78.2 percent of companies say they expect sales to increase in 2005, with 10.8 percent expecting no change and 11.1 percent expecting a decrease.
• Profitability: 68.4 percent of companies say they expect profitability to increase in 2005, while 18 percent are expecting no change and 13.6 percent expect a decrease.
• Capital expenditures: 52.1 percent of companies say they expect increases in 2005; 37.9 percent expect no change, and 10.1 percent say they expect decreases in 2005.
• Number of employees: 44.2 percent of companies reported they expect to increase the number of employees in 2005, with 50.9 percent expecting no change and 4.9 percent expecting to decrease the number of employees.
• Overall wage change: 77.2 percent expect an increase in overall wages; 19.4 percent expect no changes and 3.4 percent expect to decrease wages.
• Production/operating costs (as a percentage of revenue): 60.2 percent of companies expect an increase in 2005, while 28 percent expect no change and 11.8 percent expect a decrease.

Plus, Dane County business owners are optimistic about the future. The survey revealed that 79 percent believe 2005 will be better than 2004.

“As these results confirm, Dane County’s economy continues to do well. That’s not only good news for the business community, but for all our residents,” says Corey Chambas, president and CEO of First Business Bank.

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This story is reprinted with permission from First Business Bank.

For more information, contact:
Sharyn Alden
Malcolm Marketing Communications
608/268-6771
sousse@prodigy.net
salden@malcolmarketing.com

Chris Ellibee
Malcolm Marketing Communications
608/268-6771
cellibee@malcolmmarketing.com

Patricia Seaman
UW–Madison School of Business
608/441-7315
pseaman@bus.wisc.edu

Jodie Johnson
First Business Bank
608/232-5910
jjohnson@fbfinancial.net