Among the 97 Milwaukee-area businesses surveyed by the Metropolitan Milwaukee Association of Commerce, 80% expect to see sales increases in 2022 and 69% expect to see profits rise.
Both figures represent an improved outlook from the same time in 2021.
The MMAC survey found stronger optimism in particular amongst employers with more than 100 employees. In the large employee group, 87% expect sales gains this year, up from 75% in 2021. Among small employers, 77% expect a sales increase, up from 67%.
On profits, 78% of large firms are expecting an increase this year, up from 61% in 2021. For small employers, 65% expect an increase, up just one point from 64% in 2021.
Manufacturers are also especially bullish on the year with 88% expecting a sales increase, up 25 percentage points from 2021, and 78% expecting a profit increase, up 17 points.
Non-manufacturers saw less change from 2021 with 77% expecting a sales increase, a 5-point increase, and 66% expecting improved profits, a 1-point increase.
Small employers are showing increased interest in making capital expenditures this year with 46% expecting an increase this year, up from 31% last year. Similarly, 48% of manufacturers expect to increase their capital expenditures in 2022, up from 33% in 2021.
Across the board, employers listed labor shortages as their top business concern heading into the year followed closely by price inflation.
More employers also said they expect to increase their total employment for the year with 66% expecting a rise in headcount, up from 51% at the start of 2021. Manufacturers saw a particularly strong increase in hiring expectations with 74% expecting to increase total employment, up from 42% last year.
Employers’ concerns about inflation seem to also be translating to their expectations for how it will change this year. In 2021, a majority of respondents, 52%, expected inflation to rise 0% to 2% for the year and another 36% expected a 3% to 5% rise.
This year, 51% are expecting the 3% to 5% increase and another 30% expect a 6% to 9% increase.
Wages, one part of the inflation picture, also appear on track to increase. In 2021, 67% of respondents expect to see a rise in wages and salaries for the year. The latest survey found 90% of respondents expecting an increase over the next 12 months. The finding included 94% of large firms and 88% of small companies.
