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Sold! Brokers expect another busy year of M&A transactions
Most of Milwaukee’s merger and acquisitions and investment banking firms had record years in 2006, and they anticipate similar levels of activity for 2007. Relatively low interest rates, the willingness of banks and other lending institutions to fund acquisitions and the appetites of both strategic and private equity buyers have fueled the robust market, industry insiders say.
M&A briefs
Brady Corp. acquires Italian manufacturer Milwaukee-based Brady Corp. announced it has acquired wire-identification manufacturer Modernotecnica SpA of Milan, Italy....
Weak dollar is double-edged sword for manufacturers
The declining value of the U.S. dollar is providing a needed boost to many Wisconsin manufacturers. Manufacturers that sell to Europe, China, India and other emerging markets are benefiting from the weak dollar because it makes the U.S.-made products less expensive for foreign buyers. However, for Wisconsin manufacturers that rely on foreign markets for outsourced production and machinery, a weak dollar has the opposite effect – it raises their costs.
China’s labor law changes will have big impact
Employers will soon face dramatic changes in how they hire and manage their workforce in China. After 11 years, the Chinese government and people felt that the People’s Republic of China’s current labor contract law did not provide the necessary protections and stability for its employees and employers, especially under China’s reformed economic system.
The great hotel race of 2007
For the Milwaukee-area commercial real estate industry, 2007 could be the year of the hotel. There are at least 11 hotel developments that are being planned in or near downtown Milwaukee. In the suburbs, at least 11 hotel projects are in various stages of development. Plus, several existing hotels in southeastern Wisconsin have already completed, or are planning, renovations to keep up with the new competition.
Cloudy diagnosis: Private sector still searching for health care solutions
Health insurance costs are expected to increase again in 2007, although not by as much as in some recent years, local health insurance brokers say. Still, as health care costs continue to escalate, more businesses are asking their employees to shoulder a greater share of their health insurance costs. Many firms are creating health benefits packages with high deductibles, often combined with a health savings account (HSA) or a health reimbursement arrangement (HRA). That trend is also expected to continue in 2007, health insurance brokers say.
Online tool helps employers assess insurance costs
Some small- and medium-sized business owners are combating rising health insurance benefit costs with the help of an online tool launched by Humana Inc.
The Louisville, Ky.-based insurance company has created the Broker Benefit Utilization Director, or Broker BUD.
The Louisville, Ky.-based insurance company has created the Broker Benefit Utilization Director, or Broker BUD.
P&C rates hold steady
Wisconsin business owners, homeowners and drivers can expect to see either modest increases or reductions in their property and casualty insurance premiums in 2007. P&C insurance in Wisconsin and its surrounding states, including Minnesota, Illinois, Michigan, Indiana and Iowa, had premium decreases of 1 percent in the past nine months and a decrease of 0.2 percent in 2005, said Genio Staranczak, chief economist for the Property Casualty Insurers Association of America, based in Des Plaines, Ill.
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