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Milwaukee companies brace for a 'slow climb' in 2007
Published January 19, 2007 - BizTimes Daily
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Tempered by a housing market hangover, a slumping American automotive industry and the costly war in Iraq, most economists are projecting slow growth of 2 to 3 percent for the U.S. economy in 2007. Read more about the year ahead in SBT's annual Economic Trends issue, which hit the newsstands today. The cover story is headlined, "Prepare for the slow climb."
The comprehensive special print edition includes reports on the stock market, employment trends, the automotive industry, information technology, the retail industry, mergers and acquisitions activity, manufacturing, the impact of China, commercial real estate developments, health care and the insurance industry. The report also includes an exclusive SBT poll of Milwaukee-area small business executives.
The special report coincides with the Northern Trust Economic Trends Breakfast presented by SBT, the Independent Business Association of Wisconsin and TEC. More than 500 people attended the breakfast at the Pfister Hotel in downtown Milwaukee this morning.
The panelists at today's breakfast included the following:
- Milwaukee County Executive Scott Walker, who gave a political outlook for 2007. Walker said he has discovered a bumper sticker that both Republicans and Democrats could agree upon in 2007: "Run Hillary, Run!" Walker said, "The Democrats will put that on the back of their car, and the Republicans (will put that) on the front of their car," Walker joked. Walker said 2007 will be a key year to "get something done" politically, because 2008 will likely be locked up in presidential politics, with little chance of legislative accomplishments.
- Economist Michael Knetter, dean of the University of Wisconsin-Madison School of Business, who acknowledged the challenges facing the U.S. economy, including "irresponsible" federal deficits, but said he remains bullish about the year ahead. "I think the future remains bright for us," Knetter said. Wisconsin would be better-positioned for growth if it had more companies based in the "knowledge economy," Knetter said.
- Paul Shain, chief executive officer of Berbee Information Networks Corp. in Madison, who said new information technology will help companies enhance their customer experience, improve their productivity and lower their costs. "The next generation of this is all about mobility for workers to work at home," Shain said, adding that in a tight labor force, flexibility in scheduling and technology will be keys to attracting and retaining the top talent.
- Michael Koss, CEO Koss Corp. in Milwaukee, who said Wal-Mart continues to dominate the retail industry because of its streamlined and efficient infrastructure. "I love Wal-Mart, and I'm not being facetious," Koss said. Koss warned of rising challenges for protecting intellectual property in China and other emerging markets.
- Harry Stratton II, CEO of Strattec Security Corp. in Milwaukee, said 2007 will be a year of transition for the American automotive industry, which he said has morphed from the "Big Three" into the "Detroit Three." He called Japanese automotive manufacturers Toyota, Honda and Nissan the "New Domestics" who have built factories throughout the United States. He said American manufacturers will continue to absorb the "legacy costs" of retirement and health care benefits from labor concessions made during the recession in the 1980s. "It's in a pretty disastrous state," Stratton said of the American automotive industry. However, Stratton said he is hopeful that the industry will begin to rebound in 2008.
In edition to the Economic Trends special report, the print edition of this week's SBT also features the publication's Commercial Lending Guide.
