Study: Business climate strong

A study by the School of Business shows that executives give Wisconsin high marks as a place to do business.

The study by professor Jon Udell found that manufacturing and service executives rated Wisconsin excellent or above average for the overall business quality of life. Among the top considerations were:

• Loyalty to the area and employee preferences.
• Quality of state and local government services.
• Quality of people and their attitude toward business.
• Workers’ attitudes and stability.
• Availability and cost of energy, water, and other utilities.

Wisconsin’s ranking as a business location has significantly improved since the first study was undertaken in 1972, says Udell, who holds the Irwin Maier chair in the School of Business.

“Nearly 60 percent of the respondents believe that the state’s overall business climate is better now than it was five years ago,” Udell says. “The views of these executives heavily influence the expansion and location decisions of their companies.”

Udell adds that executives rate Wisconsin’s personal quality of life even more highly than its business quality of life. The study is based on a survey of 270 chief executives of manufacturing companies and 151 chief executives of service companies. Manufacturers responding to the survey employ more than 144,000 workers, about one-quarter of the state’s manufacturing labor force. On an annual payroll basis, the manufacturing sector contributes $27 billion and the service sector $24 billion to the state’s economy.

Manufacturers forecast a 1.19 percent annual increase in employment over the next three years, at a time when the nation and other states are experiencing declines. Three-fifths of the manufacturing executives expect to increase employment. Service industry executives forecast a 13 percent increase in employment over the next three years.

Among the study’s recommendations are the following:

• Wisconsin should intensify its efforts to promote its image as a quality place to live, work and locate a business.
• Wisconsin should continue its efforts to establish a more competitive tax climate, especially regarding the personal income tax.
• Wisconsin needs to increase its presence in high technology industries.
• Wisconsin’s educational institutions must supply an increased number of skilled, motivated graduates and promote lifelong worker learning to ensure a high-quality labor force.

Professor Udell compiled similar studies in 1972, 1985, 1990 and 1995. Data from service sector executives is a new element of the current study.

For the full study, visit: http://www.commerce.state.wi.us