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Business leaders see opportunity in 2007By Maggie Rossiter Peterman
It's a good news story from agriculture to health care, retail and research, business visionaries agree. New manufacturing is a key to success for the region, said Mark Bugher, director of the 255-acre University Research Park, which is home to 4,100 employees in 114 business at Whitney Way and Mineral Point roads. "There will be plenty of opportunity in 2007," said Bugher, 58. "Our unemployment rate is low, level of education and quality of life is high so the pieces are in place for extraordinary growth in this region." Others touting optimism include Bret M. Newcomb, 37, president of Newcomb Construction Co., Mark Meloy, 45, president of First Business Bank, and Bill Dobson, 69, an agribusiness economist for the Babcock Institute for International Dairy Research and Development and a retired agriculture and economics professor from UW-Madison. "There is some real strength in crop prices," Dobson said. "Ethanol has pushed up corn prices. Soybeans are quite strong because of foreign demand and milk will be slightly higher in 2007 than it was in 2006." "We have relatively low interest rates. That's probably going to support non-inflationary growth in the economy. But we have a declining dollar, which makes exports cheaper." Competitive edge Bugher -- who is also chairman of the Wisconsin Technology Council and the city of Madison Economic Development Commission and vice chairman of the Greater Madison Chamber of Commerce -- pumps industrial production as a solution to provide some higher paying jobs. Would the community support something like a 5,000-worker Nissan plant or a pharmaceutical plant on the outskirts of Dane County, Bugher questioned. "It's a no-brainer," he said. "We should do it, but it's very controversial. "There are people in Dane County who are resistant because it's heavy manufacturing and not what the policy makers would support. But it's important to the vacuum we have now for high school grads and those with two-year degrees who don't want to become Ph.D's. "Manufacturing provides high-paying skilled jobs for those individuals." Collaboration Council Vacancy is minimal in University Research Park, which is at 95 percent capacity and attracts companies and workers interested in computer science, engineering and biotechnology, Bugher said. "We convert the ideas in the labs and classrooms to actual private-sector entrepreneurship," he said. "There will be opportunities in biotechnology, stem cells and disease discovery related companies. "We continue to work on pharmaceutical manufacturing that's consistent with the goals and objectives with companies in (the) research park." Bugher also is a member of the Colla-boration Council, a regional economic development effort formed in 2004 with leaders from business, government, education and nonprofit companies, to gather diverse strategies for the region. "It's to aggressively attract existing and new job creators to the region," Bugher said. "You will see a whole new fresh approach to economic conditions in Dane County. They will spawn lots of new opportunities." Recognizing an urgent need to create more jobs in Dane County, Chamber President Jennifer Alexander was instrumental in creating the Collaboration Council. More than 60,000 new residents moved into Dane County in last 10 years, she said. "That's like adding a whole big city to Dane County every 10 years," said Alexander, 55, Chamber president for three years. Patterned after a similar council in Denver, members will team up to identify areas of unique opportunities, Alexander said. "We are looking at sectors where we have the greatest competitive edge," she said. Leaders will work with technical colleges to help create the work force needed, she said. "For every lab coat, there are a whole variety of other jobs available," she said. Economic indicators A building contractor, Newcomb is enthusiastic about new economic possibilities in the Capital Region. When company owners meet to draw up construction plans, Newcomb said, it's a valid indication their business is successful, Newcomb said. One Newcomb customer -- Madrax -- is a national manufacturer of outdoor site furnishings, including bike racks, benches and trash receptacles, like those on State Street. The company moved in November from Middleton to its new Waunakee headquarters, a Newcomb design. "If Madrax orders are up that means people are thinking about building and expansion," Newcomb said. Companies will not grow if the infrastructure is maxed out, he said. "That's why they need to put in the right infrastructure right now," he added. "They need to be looking for land or adding head counts." Feelin' good First Business Bank's commercial loan portfolio grew 111 percent to $491.7 million in 2006 from $232.8 million in 2000, Meloy said. "That's real organic growth," he said. "It's a dynamic local economy. Now is the time for local business owners to capitalize on business opportunities." The bank annually teams up with the UW-Madison School of Business' A.C. Nielsen Center for Marketing Research to poll Dane County business owners on economic indicators. About 500 of the 4,414 businesses with five or more employees participated in the survey done in September and October. The survey showed 72.7 percent look for an increase in revenue in 2007, and 65.5 percent expect higher profits this year. Dane County's manufacturers, in particular, are making gains. The survey showed 82.8 percent look for revenues to increase in 2007. "Business people in general feel good about 2007," Meloy said. Cautious optimism Television sales at American TV were up 30 percent Thanksgiving week compared to sales in 2005, said Steve Mixtacki, 52, chief financial officer of the retailer, which has 15 stores in five states. Mixtacki is cautiously optimistic about sales in 2007. "The consumer forecast for the products we sell is 2 to 5 percent increase," he said, estimating 2006 sales at $470 million. American TV sells furniture, appliances, televisions and electronic products, including computers and stereos, and employs 1,900 full-time and 300 part-time workers. Mark Winter predicts more growth in companies in the next 12 months. Winter, vice president of Grubb & Ellis, a full-service commercial real estate company, cited continued growth in technology companies such as Epic Systems Corp., in Verona, which specializes in medical records software, and bio-technology businesses such as Madison's TomoTherapy Inc., a manufacturer of specialized radiation machines for cancer treatment. Employees at the two businesses recently moved into new facilities. "I don't see anything about slow," said Winter. "Economic expansion will continue, although marketing research in January will show an increase in (commercial) vacancies. "(Interest) rates are very attractive. The demand for office and manufacturing space seems to be there." Yet, he declined to discuss specifics. "People are looking at call center space, but nothing significant," he said. "Madison growth in '07 will be positive." Maggie Rossiter Peterman is a Madison freelance writer. mjpeterman@sbcglobal.net madison.com ©2009 Capital Newspapers. All rights reserved. |
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