The Madison City Council renewed its goal to expand business growth in the city while weathering the effects of the economic downturn at a forum Wednesday.
The forum provided information on the recession’s effect on the city. Representatives from local businesses and banks presented information regarding the economic impact on local industries.
“Make no mistake about it: We have incredibly unprecedented challenges facing our community. The recession is second to none. This is really uncharted water we are going into,” said Ald. Tim Bruer, District 14, president of the City Council.
Tim Cooley, director of economic development, spelled out the recession’s consequences for Madison, saying the unemployment rate has shot from 3.6 percent in 2008 to 6 percent in 2009.
He added because of the rise in unemployment, there has been a decrease in sales, causing local businesses to struggle to support themselves. Local businesses have seen more layoffs and a lower demand for professional goods and services.
Attendees agreed Madison has the capability to find the path to financial stability.
“People that get laid off don’t just sit around,” Cooley said. “There is going to be opportunity in this doom and gloom. We have to create the environment.”
Cooley said the way to get Madison to prosper through the recession depends on local business. He advised the council to create an environment in Madison where new businesses open, and the community still works to expand and maintain old ones.
Ald. Judy Compton, District 16, agreed by saying the council “can start pulling away the impediments that we have.”
However, this call for new businesses comes at a trying time for local businesses.
Jim Garner, CEO of Sergenians Floor Coverings, a local business, explained the strains his business and other small community businesses have suffered.
According to Garner, many businesses have seen a decline in customers and employees have seen a decrease in hours, pay or have shifted jobs within the company. Also, health care costs for employees have risen.
Office space for local business is also problematic.
According to Chris Richards from commercial real estate company Grubb & Ellis/Oakbrook, the rate of office vacancy in Madison has climbed to 16.8 percent, which is up from 12.1 percent in 2007.
John Ronzia, a representative of M&I Bank, painted a cautiously optimistic outlook, acknowledging some stress they are experiencing but added Madison’s banks are stable overall.
“I think the banks of Madison have withstood the effects of the recession very well,” Ronzia said.
Cooley said Madison schools such as the University of Wisconsin are prime assets of the community. He added if Madison cannot find local jobs for graduates, “we are wasting the brightest and the best.”
The council took on the responsibility to ensure Madison’s economic success.
“Madison has tremendous potential,” Cooley said. “We’ve got the ability to come out of this downturn.”
