{"id":4662,"date":"2017-08-14T13:45:14","date_gmt":"2017-08-14T17:45:14","guid":{"rendered":"http:\/\/greatermankatoblog.com\/?p=4662"},"modified":"2024-01-04T15:26:51","modified_gmt":"2024-01-04T21:26:51","slug":"2nd-quarter-economic-barometer-2017","status":"publish","type":"post","link":"https:\/\/greatermankato.com\/zh\/blog\/2nd-quarter-economic-barometer-2017\/","title":{"rendered":"2nd Quarter Economic Barometer 2017"},"content":{"rendered":"

Four times a year Greater Mankato Growth distributes a survey to area businesses regarding multiple metrics in order to gather how the economy performed during the previous quarter and what businesses project for the upcoming quarter. \u00a0Additionally, a unique inquiry is posed in each quarter to gain topical insight to the local economy.<\/p>\n

Respondents\u00a0provided feedback on six metrics regarding their business for the First Quarter: \u00a0Revenue, Profit, Employment Change, Capital Expenditures, R&D Spending and New Customer Acquisition.<\/p>\n

Below the overall trend for the economy is presented first for each metric, followed by industries showing noticeable change. A noticeable change means a majority of businesses in that sector responded with “up” or “down.”<\/p>\n

Revenue<\/strong>\u00a0– 77% up or same (up 55%, same 22%). Industries experiencing the most change (up or down) were Manufacturing\u00a0with 58.3% of businesses saying their revenue was up as compared to last year. 44.4% of Professional Service\u00a0businesses say their revenue was down compared to last year in the First Quarter.<\/p>\n

Profit<\/strong>\u00a0– 49% up. \u00a0Industries experiencing the most change (up or down) were Manufacturing with 66.7% of businesses saying their revenue was up as compared to last year.<\/p>\n

Employment Change<\/strong>\u00a0– Steady with little change\u00a0(same 47.3%). 39% of industries were up and only 14% of industries were down.\u00a0 58.3% of Manufacturing businesses were up and 40% of Healthcare businesses were up.<\/p>\n

Capital Expenditures<\/strong>\u00a0– 85% Up or Same (37% Up, 48% Same). Manufacturing (58.3%) saw a noticeable positive change in capital investment.<\/p>\n

R&D Spending<\/strong>\u00a0– Steady with little change (same 67%). \u00a050% of Manufacturers increased their R&D investments.<\/p>\n

New Customer Acquisition<\/strong>\u00a0– 86% up or same (up 51%, same 35%). Several sectors had noticeable positive growth in this metric. \u00a0Finance\/Insurance (58.3%), Health Care (80%) and Manufacturing (50%) all grew.<\/p>\n

Manufacturing was positive in nearly all metrics.<\/p>\n

Second Quarter 2017 Forecast<\/strong><\/p>\n

Revenue \u2013 Ag and Manufacturing had the most positive outlook, 44% of Professional\/Tech service businesses forecast a decline.<\/p>\n

Profit –\u00a0 Manufacturing and Healthcare have the most positive outlook.<\/p>\n

New Customer Acquisition \u2013 All industries predicted growth or remaining steady.<\/p>\n

Employment Levels \u2013 Manufacturing predicted growth, while the remaining industries forecasted to be the same.<\/p>\n

Capital Expenditures \u2013 Forecasted to remain the same.<\/p>\n

R&D Spending \u2013 Forecasted to be the same.<\/p>\n

 <\/p>\n

Business\u00a0Concerns<\/strong><\/p>\n

Businesses were asked to rank their level of\u00a0concern on a scale of 1 -5 (5 being high) among 6 areas: \u00a0workforce availability, Minnesota regulations\/permitting, labor costs, operational costs, state political climate and national political climate. For the second quarter in a row, Workforce Availability is the top concern.\u00a0 The Manufacturing sector, which reported many positive metrics this quarter, overwhelmingly recognized this as their top concern.\u00a0 This infers that Manufacturing industry growth could continue as long as employees can be found.<\/p>\n

\u8fd9 Greater Mankato Business Community has mobilized <\/a>on this topic and is working to impact labor shortages in a comprehensive manner.<\/p>\n\n\n\n\n\n\n\n\n\n
Concern<\/strong><\/td>\nPoints<\/strong><\/td>\n<\/tr>\n
Workforce<\/td>\n278<\/td>\n<\/tr>\n
Labor Costs<\/td>\n234<\/td>\n<\/tr>\n
National political climate<\/td>\n227<\/td>\n<\/tr>\n
Minnesota Regulations, permitting<\/td>\n214<\/td>\n<\/tr>\n
Operational costs<\/td>\n214<\/td>\n<\/tr>\n
State political climate<\/td>\n213<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Quarterly Questions: \u00a0“Of your workforce need, which category is the most pressing?” \u00a0and “Of that workforce need, what level of education is necessary?”<\/strong><\/p>\n

There were four categories to choose from for the first question:\u00a0 entry labor, skilled labor, technical specialists, experienced specialists, other.39% of businesses replied that \u201cexperienced specialists\u201d was the most pressing need.<\/p>\n

There were four categories to choose from for the second question:\u00a0 high school or equivalent, two-year education or certificate, four-year degree or higher, just experience in position regardless of education.\u00a0 40.6% of businesses specified that \u201cfour-year degree or higher\u201d was the necessary level of education for their most pressing need.<\/p>\n

Below is the breakdown of needs by industry:<\/p>\n

Ag \u2013 Experienced Specialists<\/p>\n

Manufacturing \u2013 Entry labor or Skilled labor<\/p>\n

Retail \u2013 Entry labor<\/p>\n

Information \u2013 Skilled labor and some experienced specialists<\/p>\n

Finance and Insurance \u2013 Experienced specialists<\/p>\n

Professional\/Technical Services \u2013 Experienced Specialists<\/p>\n

Educational services \u2013 mix of skilled labor and technical specialists<\/p>\n

Health Care \u2013 Mix of everything<\/p>\n

Arts\/Entertainment \u2013 Mix of entry labor and Other<\/p>\n

Accommodation and food service \u2013 Entry labor<\/p>\n

Other services \u2013 Mix of everything<\/p>\n

 <\/p>\n

The Greater Mankato Growth Economic Barometer was sent electronically to nearly 2,000 area business leaders from July 27\u00a0– \u00a0August 7 with 62 reporting. The survey included GMG members and non-members as respondents.<\/p>","protected":false},"excerpt":{"rendered":"

Four times a year Greater Mankato Growth distributes a survey to area businesses regarding multiple metrics in order to gather how the economy performed during the previous quarter and what businesses project for the upcoming quarter. \u00a0Additionally, a unique inquiry is posed in each quarter…<\/p>","protected":false},"author":8,"featured_media":3834,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_price":"","_stock":"","_tribe_ticket_header":"","_tribe_default_ticket_provider":"","_tribe_ticket_capacity":"0","_ticket_start_date":"","_ticket_end_date":"","_tribe_ticket_show_description":"","_tribe_ticket_show_not_going":false,"_tribe_ticket_use_global_stock":"","_tribe_ticket_global_stock_level":"","_global_stock_mode":"","_global_stock_cap":"","_tribe_rsvp_for_event":"","_tribe_ticket_going_count":"","_tribe_ticket_not_going_count":"","_tribe_tickets_list":"[]","_tribe_ticket_has_attendee_info_fields":false,"footnotes":""},"categories":[171],"tags":[426,427,186],"post_author":[],"class_list":["post-4662","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-development","tag-barometer","tag-economic","tag-mankato"],"acf":[],"yoast_head":"\n2nd Quarter Economic Barometer 2017 - 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