How I See It: State of the Economy 2012

I preface these comments with three qualifications – one, I am typically a “glass-half-full” personality; two, I’m not an economist (I don’t even play one on TV); and three, I’m assuming that there will be neither a Eurozone economic meltdown nor significant instability in the Middle East.

Given that, I see a rosier business environment in 2012 than what the mainstream media seem to be embracing.

· Consumer confidence is positive and rising.

· Unemployment claims and rates are declining.

· Over 200,000 private sector jobs were added in December, of all months.

· Manufacturers report increasing backlogs and plant capacity utilization.

· Banks are competing again for opportunities to finance business growth.

Yes, there are some tricky issues that still need to be addressed. One of them appears to be an imbalance between available workers and the skillsets needed by employers, especially manufacturers. We’ve often discussed manufacturers’ workforce development challenge here. But many worthwhile efforts are attempting to bridge this gap. Second Chance Partners, an alternative education organization that pairs schools and private industry to create manufacturing apprenticeships for students who are struggling in the traditional high school environment, is a notable example.

As 2012 unfolds, I see prudent businesspeople taking advantage of this increasingly favorable environment. They will begin to reinvest for marketing and sales – not only for customers but also for recruiting the skilled employees they desperately need; they will take advantage of very low interest rates to upgrade if not expand their production facilities; and they will make sure that they take extra-special care of their current employees.

Woven into the Fabric of Every Strong Economy Is a Vibrant Arts Community

Here at the office, we’re in the midst of our fourth annual office fund-raiser for the United Performing Arts Fund.

We kicked off our fund-raiser last week with a tour of the Broadway Theatre Center in Milwaukee, home to Skylight Opera Theater and other companies. Photos at left, courtesy Elizabeth Franczyk, show the costume shop. Thanks to Diana Aliota and Jim Ferrell for a fun and fascinating look at all the passion, ingenuity and hard work that goes into every show.

UPAF—kind of like the United Way, but for artistic organizations—is clearly a big reason our hometown boasts a lively arts scene. Less obvious, perhaps, is that it’s also a key driver of our region’s economic resilience.

A strong arts community helps attract and retain the talented, creative professionals who are essential to our ongoing economic evolution and growth. That’s what makes increasing collaboration among creative organizations and businesses—such as the Creative Alliance Milwaukee and its Creative Hub—so important.

Meanwhile, our collective support of the arts is becoming even more crucial, at a time when the state budget is tight and legislators are finding it necessary to slash public funding for the arts.

So get involved. Give to UPAF. Connect with the Creative Hub. And help us keep southeastern Wisconsin’s economy strong for many years to come.