LADCO Survey: Labor supply biggest worry for employers

0 Comments | La Crosse Tribune, Jun 01, 1998

Local manufacturing and distribution firms say the small labor supply is the factor having the greatest negative impact on their development.

That's according to the recently tabulated 1998 business retention survey done by the La Crosse Area Development Corp.

The survey was mailed in February to 1998 La Crosse County manufacturers and distributors. Of those, 51 completed and returned the forms.

The biggest difference from last year's survey results: Nearly 70 percent, compared to about 40 percent last year, said the labor supply is the factor having the greatest negative impact on the current and future development of their business. The survey form listed 14 factors.

At the same time, companies' abilities to market and sell (53 percent) and their ability to expand or modernize (43 percent) were cited as having the most positive impacts.

The local labor market has gotten tighter in the last year, said Jon Lamb, LADCO marketing and retention specialist. "And employers are becoming more and more aware of it," he said. The labor supply is tight throughout the Midwest, he said.

Last week, state officials announced record low unemployment rates for April for La Crosse and Wisconsin. The La Crosse metropolitan area's unemployment rate dropped to 2 percent in April from 2.7 percent in March and 3.1 percent in April 1997.

The labor market has become more competitive, said James Hill, LADCO executive director. But there are mitigating factors, he said. The local population has been increasing about 1 percent a year in the second half of the mid-1990s, faster than in the first half. Companies are becoming more creative in attracting job applicants and there are school-to-work programs, Hill said.

This was the second year for the annual survey by LADCO, which also coordinated three Wisconsin Bell Telephone retention surveys between 1985 and 1993.

"It helps us identify issues with businesses, and whether we can be of assistance," Lamb said. It also provides a better view of the local economy and will help LADCO track trends over the years, he said.

"It's a communication tool, too," Lamb said. "And it allows us to help keep government informed of business needs through the overall results. Individual results stay confidential."

Copies of this year's executive summary will be sent to companies that participated in the survey and to local government officials.

OTHER FINDINGS

Other survey highlights include:

* About 33 percent of the businesses, up from 22 percent last year, said most of their customers are national, rather than local, regional or international.

* Nearly 50 percent, down from about 55 percent last year, said they make sales in international markets.

* About 30 percent said they do not have enough property to expand, but 47 percent have plans for a new building in the area. And almost 21 percent have construction plans for 1998.

* Companies have continued to increase employment. More than 74 percent said their number of full-time equivalent employees has been increasing.

* Nearly 69 percent said the area has stayed the same or gotten better for business, while 76 percent believe the area will stay the same or get better.

* Asked about the area's greatest selling point, quality of life (more than 23 percent), natural beauty (more than 23 percent) and quality work force/work ethic (almost 12 percent) topped a list of 17 categories.