New economic survey results revealed

APPLETON - A new study shows area businesses grew their profits this year. But, it doesn't mean they're hiring in big numbers.

During the 2012 New North Summit in Appleton Friday, First Business Bank released its annual economic survey.

Overall, the businesses surveyed in our area say they're doing well. Profitability has increased since 2011. Revenue has also increased, by four percent.

And, expectations are running high for 2013. 82 percent of businesses look for growth next year.

While only 20 percent of businesses surveyed cut workers in 2012, they're still cautious to hire.

Economists and business leaders at the New North Summit say the worst of the recession is behind us.

"Two word answer is, it's improving. But it's improving at a rate less than we'd like to see,” said Dennis Winters.

Winters is the chief of the state's Office of Economic Advisors. He presented the study’s findings at the summit Friday.

Winters says a lack of consumer spending leads to a lack of business growth.

"We're still paying off a lot of debt we carried through,” said Winters.

Many companies surveyed in Northeast Wisconsin say they're less likely to expand with new construction and hiring.  Local construction companies say they're back on the job, but not at the same pre-recession level.

“Our customers take longer time to make decisions on an investment. Their boards are more cautious,” said Bob DeKoch, the president of Appleton's Boldt Construction.

DeKoch says despite cautious moves, he's still looking to hire.

"We had to reduce our staff by fifteen percent through the downturn but we're back up now, higher than we were before. We're going to grown another 15 to 20 jobs next year. I think we'll see cautious improvement in 2013 but we might see a bit of a downturn in 2014 and 2015,” said Koch.

While some business executives have their doubts, economists say they're expecting the slow growth to continue.

"By the end of ‘14 and ‘15, we'll be seeing better growth,” said Winters.

Economists say we probably won't see the employment rate back to where it was before the recession until 2015.