What Businesses are Working in Wisconsin’s Downtowns?

2. What Businesses are Working in Wisconsin’s Downtowns?

3. Businesses operating in Wisconsin’s Downtown’s (2002-2010) By: JD Milburn, Downtown Development Specialist Ever wonder what businesses work in Wisconsin’s downtowns which ones close the most, which ones create the most jobs? This presentation provides an analysis of 8 years of data from those on the front lines. Wisconsin Main Street Executive Directors! Wisconsin Main Street presents 8 years of economic operating data to refine your local efforts.

4. Wisconsin Main Street Community Demographics • Population • Populations run from 764 to 102,000 when considering the community or one (1) mile radius ofthe two (2) metro designated neighborhoods. The average population is 7,400 and the median population is 10,000 for the designated areas. • Budgets: • The average budget of the designated areas were $138,922 with the median being $100,965. Gross budgets ranged from $400,000 to $30,000. The program requires organizations to employ a full-time executive director when the population base is 5,000 or greater, and allows for part-time director when the population is below 5,000.

5. Wisconsin Main Street Community Demographics (Cont) • Legal status • 81.82% hold Internal Revenue Service (IRS) tax exempt status of 501 (C )(3) “Charitable Organization “, • 3.03% 501 (C )(4) “Civic League”, • 9.09% 501 (C )(6) “Business League” and • 6.06% two (2) local Government Agency “Business Improvement District” (BID) Status. • 62% Have a BID

6. Closings • As we all know business closing can have many negative economic and social affects on an area. • Some of those may be: • Lost area sales • Lost area necessity goods • Lost area necessity services • Lost bank and investor capital • Lost payroll spending impact • Lost real estate value • Lost taxes • Perhaps higher crime rates? • So lets look at the types of businesses that are closing, and estimate some economic impacts

7. Closings • Business types that closed the most in Wisconsin Downtowns • 81 appliance and home electronics • 70 eating places • 42 apparel • 39 Gift stores • 33 drinking places • Closing Business type by job impact • 458 eating places • 98 drinking places • 88 apparel • 82 Gift stores • 78 other retail

8. Closings so what? What has the area lost per store

9. Closings so what? What have we lost as a state

10. Closings so what? Job impact

11. Business types sold • Sales can indicate many things. • Some of those may be: • An enhanced economic area, in which owners sellout and invest funds into new ventures. • An area in which transition is happening as business owners reach retirement age. • An area experiencing economic stress, in which selling the business is the only way out of a potential liquidation • A type of business that is becoming a casualty of a category killer or Big Box competition • So lets look some of the types of businesses that are selling and think about our own local situations.

12. Business Types Sold • Business types that sold the most in Wisconsin Downtowns • 14 eating places • 7 other retail • 5 drinking places • Sold business type by job impact • 52 eating places • 29 drinking places • 24 laundries & cleaners

13. Sold businesses so what? Local area economic influence

14. Sold businesses so what? State economic influence

15. Sold businesses so what? State Job impact

16. Expansions • Expansion into the area can indicate many things. • Some of those may be: • An enhanced economic area, in which owners expand product offerings • An enhanced area, in which owners purchase additional real estate • An enhanced area, in which owners pursue additional markets, or acquire additional businesses. • In most cases expansion is a sign of local economic health • So lets look some of the types of businesses that are expanding and evaluate our own local situations.

17. Business Expansion Types • Business types that expanded the most in Wisconsin Downtowns • 26 eating places • 18 professional services • 13 gift stores • Expanded business type by job impact • 103 banks/credit unions • 86 eating places • 71 miscellaneous personal services

18. Expanding businesses so what? Local area economic influence

19. Expanding businesses so what? State economic influence

20. Expanding businesses so what? Job impact

21. Reductions • Reductions in the area can indicate many things. • Some of those may be: • A product that has experienced obsolescence and so the survival strategy is to reduce the employees and or real estate footprint • Reductions also happen when a firm is dying a slow death • Reductions are warning signs to help the owner using retention strategies • So lets look some of the types of businesses that are reducing and evaluate our own local situations.

22. Business Reduction Types • Business types that reduced the most in Wisconsin Downtowns • 4 eating places • 4 miscellaneous professional services • 2 apparel • Reduced job numbers by business type • 50 manufacturing • 22 banks/credit unions • 9 eating places

23. Business reduction so what? Local area economic influence

24. Business reduction so what? State economic influence

25. Business reduction so what? Job impact

26. Relocations • Relocations from the area can indicate many things. • Some of those may be: • When a firm has experienced growth so large that a large single purpose headquarters has to be built. This can be experienced both ways and some firms have relocated their headquarters into downtowns • Relocations happen when an area experiences business cycles similar to the maturity of its business mix. • Relocations happen when cost structures change • So lets look some of the types of businesses that are relocating and evaluate our own local situations.

27. Business Relocation Types • Business types that reduced the most in Wisconsin Downtowns • 52 miscellaneous professional services • 37 other retail • 33 miscellaneous personal services • Reduced job numbers by business type • 426 Insurance agents • 307 miscellaneous professional services • 243 eating places

28. Business relocations so what? Local area economic influence

29. Business relocations so what? State economic influence

30. Business relocations so what? Job impact

31. Business starts • Business starts in an area can indicate many things. • Some of those may be: • Healthy attractive business environment • Business friendly area, community, politics • Capital sources. • Good real estate value compared to business revenues • Coexisting business in the area, that encourage their friends to open a supporting business. • So lets look some of the types of businesses that are starting and evaluate our own local situations.

32. Business starts Types • Business types that reduced the most in Wisconsin Downtowns • 93 eating places • 62 other retail • 33 miscellaneous personal services • Reduced job numbers by business type • 1,112 eating places • 307 other retail • 232 miscellaneous professional services

33. Business starts so what? Local area economic influence

34. Business starts so what? State economic influence

35. Business starts so what? Job impact

36. Strategies/Take away? • Eating places have high start up rates, high job impacts, but experience larger amounts of closings. Each community should have an active restaurant development, retention strategy! • Financial institutions have high job impacts and are purchasing real estate in downtowns. Actively working with this sector as a development strategy is an effective strategy. • Light small component manufacturing should be a strategy. Look for large manufacturing plants, and try to locate small value added suppliers in certain areas of downtowns. • Professional and personal services. This area has large employment and income impacts. Look at your mix and try to fill in the upper areas of properties with these types of businesses. A balanced and market sustainability driven effort is the key to a downtown area.

37. Data sources? • Wisconsin Main Street reporting database. • InfoUSA • Dollars and Cents of Shopping Centers SCORE 2008 (ICSC & ULI) • US 2007 Economic Census