Business owners are optimistic about 2010
APPLETON, WI) ? December 17, 2009 ? Businesses in Northeast Wisconsin continued to face economic pressures in 2009. However, despite the unsatisfactory year, business owners have positive expectations for 2010, according to a report released today by First Business Bank at the invitation-only First Business Economic Forum. The First Business Economic Survey of Northeast Wisconsin, sponsored by First Business Bank, the University of Wisconsin-Oshkosh, and Insight Publications, and conducted by the A.C. Nielsen Center for Marketing Research at the University of Wisconsin-Madison School of Business, showed that all business sectors reported declines in all eight economic categories surveyed? sales revenue; profitability; total operating costs as a percentage of revenue; capital expenditures; number of employees; overall wage changes; changes in pricing; and operating capacity. More than 50 percent of businesses did not meet expectations in 2009. Fifty-seven percent of Northeast Wisconsin businesses saw a decrease in sales and a 49 percent a decrease in profitability. Although sales were down overall, the manufacturing sector was the hardest hit. Northeast firms also saw a significant decrease in employee numbers, with nearly 42 percent indicating a decrease in the number of employees. Additionally, 25 percent of businesses also saw 2009 wages decrease. ?This was definitely a year of steep declines in all economic areas reviewed,? says by Dr. E. Alan Hartman, Professor of Management and Human Resources and Former Dean of the College of Business at the University of Wisconsin-Oshkosh. ?These declines were most severe for those selling to businesses and manufacturers and less so for those selling primarily within Northeast Wisconsin.? Despite the disappointing year, businesses are optimistic about 2010. The report indicated 85 percent of businesses expect to do better in 2010. More than half of businesses expect sales revenue and profitability to increase in 2010 and a majority of firms anticipate wages to increase next year. Mickey Noone, President - Northeast Region of First Business Bank said the report shows that Northeastern Wisconsin is similar to the rest of the country in feeling the impact of the national economic downturn. ?Overall, Northeast Wisconsin business performance was down in 2009, much like the national picture. The expectations however for 2010 bouncing back reflect the optimism held by Northeast businesses,? Noone said. ?There are some positive signs in this report,? says Hartman. ?Seventy-two percent of firms are expecting an increase in sales revenue in 2010. Northeastern Wisconsin businesses are working hard to get through these tough times. It shows resilience that I would expect from Northeast Wisconsin business owners. There is confidence in the business community? Each year the survey asks a current event question. In 2009, businesses were asked about the impact Federal healthcare reform would have on their business. When asked, ?How would the proposed healthcare legislation affect your business?? more than 62 percent responded negatively. Only 12 percent believe such legislation would have a positive effect on their business. It should be noted that health care legislation was not finalized at the time of the survey (October, 2009), so responses were not based on a specific healthcare plan. First Business Bank has been conducting the economic survey of Northeast Wisconsin for two years. The survey was based on the responses of 373 businesses across the county. The sample size has an error range of .05 and a confidence level of 95 percent. Full survey results are available under the ?Resource Center? tab at www.firstbusiness.com
. A live web video stream and blog of the event is being provided by Insight Publications. ABOUT FIRST BUSINESS BANK First Business Bank - Northeast is headquartered at 3913 W. Prospect Avenue in Appleton. In addition to offering commercial loan products, First Business Bank - Northeast offers a full line of deposit, investment, and equipment finance products through its affiliates First Business Bank - Madison and First Business Trust & Investments. Among these products are: remote deposit, treasury management, Internet banking, retirement plans, investment management services, trust services, asset-based lending, and equipment finance and leasing. For additional information, visit www.firstbusiness.com
or call 920-734-1800.
About First Business Financial Services, Inc.
First Business Financial Services, Inc. (Nasdaq:FBIZ) is a Wisconsin-based bank holding company, focused on the unique needs of businesses, business executives, and high net worth individuals. First Business offers commercial banking, specialty finance, and private wealth management solutions, and because of its niche focus, is able to provide its clients with unmatched expertise, accessibility, and responsiveness. For additional information, visit www.firstbusiness.com or call (608) 238-8008.
The First Business Financial Services, Inc. logo is available at http://www.firstbusiness.com/logo
This press release contains forward-looking statements that reflect the Corporation's plans, estimates and beliefs. When used in this press release, the words "anticipate," "believe," "estimate," "expect," "objective" and similar expressions and verbs in the future tense are intended to identify forward-looking statements. The statements contained in this press release involve or may involve certain assumptions, risks, and uncertainties, many of which are beyond the Corporation's control, which could cause actual results to differ materially from those discussed in the forward-looking statements. The forward-looking statements included in this press release are only made as of the date hereof, and the Corporation undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. In addition to the assumptions and other factors referenced specifically in connection with such statements, the factors described in "Item 1A. Risk Factors" in our Annual Report on Form 10-K and the following factors could impact the business and financial prospects of the Corporation: general economic conditions; legislative and regulatory initiatives; increased competition and other effects of deregulation and consolidation of the financial services industry; monetary and fiscal policies of the federal government; deposit flows; disintermediation; the cost and availability of funds; general market rates of interest; interest rates or investment returns on competing investments; demand for loan products; demand for financial services; changes in accounting policies or guidelines; general economic developments; acts of terrorism and developments in the war on terrorism; and changes in the quality or composition of loan and investment portfolios.
AVP - Marketing
First Business Financial Services