The Economy: Is stimulus package helping?
No, replied the majority of our IB100 Dane County business leaders. We sent this follow-up question to our usual nine questions when polling in October: To date, which of these statements best describes the effect of the federal stimulus package (2009 American Recovery and Reinvestment Act) on your organization?
7.1% We have received a direct benefit from the stimulus package (i.e., a government contract).
19% We have received an indirect benefit. I believe the stimulus is positively affecting my organization.
73.8% We have received no benefit. I do not believe the stimulus is positively affecting my organization.
IB Asked:
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Commentary from our Participants
IB partnered with Chamberlain Research Consultants (CRC) to poll a pre-selected group of 100 companies. The IB100 group includes cross-industry, business-to-business, and business-to-consumer entities, and a few significant nonprofits. Here are a few comments received:
IT Consulting/Managing Director: Consulting opportunities in the Greater Madison area have increased in the last few months compared to late 2008 and the first half of 2009. I am optimistic that this trend may continue. However, the unemployment trends continue to look poor and the U.S. economy will likely be very unpredictable until that trend begins to reverse.
Bioscience firm/CEO: Hired six new full-time people with full benefits since June 2009 and opened a new Madison office!
Office furniture retail/President: I believe we are still not on the upswing of the economy; it may have bottomed out, but it needs to turn upward yet.
Telesales provider/Chairman: I believe that pending federal legislation could result in substantial tax increases. This possibility, along with planned increases in the minimum wage, is creating uncertainty and acting to constrain future private investment outlays. The end result will be low job growth and increased incentives to shift jobs to offshore locations.
Dental Practice/Exec. Director: I feel that the consumer is very protective of his/her discretionary spending dollars. I am seeing more delays and downgrading of purchases than ever before. The consumers’ confidence level is very low.
Vehicle (Motorcycle, ATV) retail/GM: I feel that we have seen the bottom of the decline in the power sports business. Floor traffic is starting to rebound. Consumers are starting to spend money again on recreational products. It still has a long way to go before it’s back to normal, but it is looking up.
