The 2006 Wisconsin Manufacturers & Commerce Survey

Wisconsin Manufacturers & Commerce (WMC) published their annual CEO Survey. Here is what WMC had to say about their findings:

This year, Wisconsin employers are projecting increased hiring and wage hikes, but are having trouble finding qualified workers. Nearly 30 percent of respondents said the labor shortage is their top business problem. Taxes, regulation, and health care dominate the issues confronting industry. Over one-third expect to expand in Wisconsin in the next year, and 88.3 percent project moderate to good growth in their own businesses over the next 12 months.

They also said:

This year, only 29.4 percent said the business climate is somewhat pro-business, down from 54 percent last year. CEOs said they continue to be troubled by taxes, regulation, labor supply, and health care costs. Some 46.7 percent say Wisconsin’s going in the right direction, and 53.3 percent say the state is on the wrong track.

Here is an alternative view:

• Know this survey for what it is. This is not an unbiased, scientific study. It is perceptions, and perceptions of specific people from an organization that repeatedly feeds its members biased and misleading information.
• As we know from past experience there is a disconnect on taxes.
  • 52.9% of those surveyed say the Top Policy Issue Facing Wisconsin is taxes,
  • Yet only 5.9% say taxes are the Top Business Concern Facing Their Company.
  • Yet 22.4% say Reducing Taxes is the one thing that state government could do to help business.
• 54.5% of the companies spend 3.0% or less of their payroll on Employee Training.  This is a startling low number, especially in light of the fact that 26.5% state that Competition is a top business concern.
• Now get this. 89.3% say that they expect good to moderate growth for their business in the next year.  This is the most positive response in the years covered in the survey going back to 2001.
• But 53.3% say Wisconsin is going in the wrong direction.

Conclusions: 

Once again, responses from WMC members show that the individual companies are doing much better than they perceive either the rest of Wisconsin business doing, or the state as a whole. One has to wonder what might happen if WMC stopped feeding bogus studies to their members and the legislature, and really worked to develop this state, especially its competitive workforce.

Health care is the one area where Wisconsin business and millions of Wisconsin residents have a legitimate common concern. Perhaps WMC would like to join in fashioning a real solution, not one based on ideology designed to provide tax breaks for very few people.

International competition is clearly a growing concern.  It should be of concern to Wisconsin business and workers.  In staying competitive means cutting jobs, cutting wages, and cutting benefits, everyone loses. The problem must be solved on a national level, but clearly Wisconsin business, organized labor, and government must work together on this one.