Forward Janesville - TheReport - Second Quarter 2018

One hundred years. Forward Janesville and our various incarnations—the Janesville Commercial Club and the Janesville Chamber of Commerce—have been planning, probing, promoting, and protecting the interests of the area’s business community since 1918. I have been Forward Janesville’s President for almost two decades. When I moved here in December of 2000, I started by meeting with 250 people connected in one way or another to the business community, education, and local government. The top themes from those conversations guided our organization over the next few years. THE KEY THREADS INCLUDED: 1. The need to diversify our local economy. Many business leaders were steadfast that we remained too dependent on the auto sector and General Motors. 2. An undercurrent of concern that Wisconsin had become increasingly less competitive in terms of economic development. The number of company expansions, new jobs, start-ups, and relocations did not measure up to what most peer states were able to celebrate. 3. Tax concerns. Comparatively high Wisconsin taxes were perceived as the principal impediment to economic growth. Annual rankings routinely put us in the top 10 highest taxed states. This later became a rallying call for some prominent politicians. 4. Many people told me their concerns and/or insights about the impact of technology. The plant manager at GM shared a story about how engineers were increasingly automating the assembly process. He told me to expect declining employment numbers over time. Other observers were more focused on how technology-oriented companies and jobs tended to locate in more urban areas. Over time, would we be left with more lower paying jobs and companies? 5. A changing retail sector. Online sales hadn’t yet changed the landscape but some observers were astute enough to see the coming transformation. 6. “Something” needed to be done to revitalize Downtown Janesville. A newly produced report, funded by Forward Janesville, was on my desk on my first day. It was a study of how the Monterey Hotel might be redeveloped. Soon there were additional plans and reports about what might be possible. I share these anecdotes about the themes that dominated 2001 because it helps us understand the context of our outlook going forward. In 2018, we have largely recovered from the recession. We have a considerably more diverse economy than we did two decades ago. We have dropped out of the top 10 list of highest tax states, but only barely. Illinois, our friendly competitor to the south, is widely thought to be one of the most vulnerable and difficult states going forward. They have over $250 billion in unfunded pension liabilities and the options for Illinois’ taxpayers are not pretty. Wisconsin’s pensions are fully funded. The retail landscape is a mixed bag. National headlines about failing retailers are common. The growth and consolidation of a few big online retailers is daunting. But we continue to see more new retail development. Blain’s Farm & Fleet just announced three new large stores that will lead its expansion in Michigan. Restaurants and bars keep popping up around town. Total retail sales numbers keep setting new records every quarter. One thing we can be certain about going forward is that there will continue to be winners and losers in the retail space. How deep online sales penetrate every aspect of retail (even grocery) will largely determine how our local retail environment changes going forward. The other economic beachhead is our workforce. Things have changed considerably over the past 20 years. Companies covet quality workers with specific skills. Automation and advance machinery is replacing routine tasks in both manufacturing and non-manufacturing settings. Most conversations with business leaders center on the talent pool and what we might do to make Janesville and Rock County a community of choice. Those who voiced concerns 20 years ago about the impact of technology in the workplace were right on target. It is the number one issue going forward. My final observation relates to becoming a community of choice. I mentioned the assorted, unimplemented downtown revitalization plans and dust-covered reports that accumulated over the years. Downtown remains our most under-preforming community asset. The good news is that the Arise Plan has considerable support from both the public sector (City Hall) and the private sector. I can say with very high confidence that this time is different. The goals are lofty. The vision is bold. The team assembled to move the needle is top notch. In five years, downtown will have changed considerably. It will again be a place where citizens will want to bring out-of-town guests. The people of Janesville will once again be rightfully proud of their downtown. When I look into the future, this is the part that I can predict with the most confidence. The next 100 years are off to a great start. 4 • W W W . F O R W A R D J A N E S V I L L E . C O M JOHN BECKORD - PRESIDENT, FORWARD JANESVILLE The Next 100 Years The VISION IS BOLD. THE TEAM assembled to move the needle is TOP NOTCH.