Most metro Milwaukee business leaders are expecting higher sales and profits, and expect to employ more people, during the third quarter than a year ago, according to the results of the
Metropolitan Milwaukee Association of Commerce’s quarterly membership business outlook survey.
The survey, conducted by the MMAC of its members, contains responses from 78 Milwaukee area firms, both large and small, employing more than 20,000 people.
Of those surveyed, 66% expect higher sales in the third quarter, compared to a year ago, 63% expect higher profits in the quarter and 60% expect higher levels of employment at their companies.
“Milwaukee employers remain cautiously optimistic about continuing sales growth, rising profits and job gains through the third quarter,” said Bret Mayborne, the MMAC’s economic research director.
Business leaders surveyed by the MMAC identified inflation as their top concern, followed in order by: “continuing economic growth and recovery,” supply chain issues, labor shortages, office reopening plans and crime.
“The primary cloud on the economic horizon remains future price inflation,” Mayborne said. “The businesses we surveyed forecast continuing high price inflation and identified inflation as their top concern going into 2022’s second half.”
The U.S. Consumer Price Index rose 9.1% in June, year-over-year, the highest 12-month increase since the period ending in November of 1981.
Job gains in the metro Milwaukee area have been sluggish during the first six months of 2022, averaging 1.5% year-over-year. That’s well below the national average of 4.6% posted in the year’s first half. However, jobs in the metro area have now posted 15 consecutive months of year-over-year employment growth and the MMAC's survey results suggest overall job growth in the area is likely to continue into the third quarter. Metro Milwaukee businesses forecasting third quarter 2022 employment gains (60%) vs. year-ago levels outnumber those expecting job declines (6%) by a ten-to-one margin. Job expectations are higher than those expressed for 2022’s second quarter when 49% of respondents forecast employment growth (vs. 2021’s second quarter).
Labor shortages and inflationary pressures have kept wage and salary expectations at high levels. Businesses responding to the MMAC survey expect per employee wages and salaries to increase at a 5% rate in the next 12 months.
Those employers were also asked about what strategies they are using to attract or retain workers. Multiple responses were allowed, but the most frequently cited strategy was increasing salaries, mentioned by 79% of those surveyed. Making improvements to company culture (64%), providing bonuses (54%), and greater flexibility on remote work and/or scheduling (53%) followed next in order by percentage of respondents who cited them.
