new richmond area economic development

The past couple of years have been tough on our economy from many different points.  Two that impact us locally are the loss of jobs and the uncertainty with our taxes.  There is a connection between the two.  When businesses are unsure about what their tax burden will be, they are unwilling to take more risk in either adding on to their buildings or hiring more employees.  They take a wait and see attitude.  Yesterday in the paper, it stated that corporations are sitting on $1.7 trillion in cash waiting to see what the future landscape will look like.  Although the economic development activity in New Richmond has created over 100 jobs in the last 24 months, we also have lost some.  Unfortunately, we don’t know how many.  Between the federal government, our state government, and our local government, there needs to be a clear picture of what our property and income taxes will look like into the future.  Then I think we will see a sharp up turn in the economic development activity and a brighter future.

With most of the start-up companies that we work with, initial capital investment is usually a requirement.  Most new business owners start with their own money and maybe some from relatives and friends.  Their next steps usually are to approach banks for loans and that is where they find out that without collateral, they can’t access those loans.  The regional revolving loan fund is a possible source or the local angel investment groups.  Even with all of these sources, there is sometimes still a gap.  We are currently investigating the forming of a investment fund that would provide small amounts of start-up capital for part ownership in those companies.  This fund would provide the means for a start-up company to get capital they normally would not qualify for in exchange for stock.  It will take some time for us to work out the details and to find funding, but it will be another tool available to New Richmond businesses to further stimulate economic development and create local jobs.  We will keep you posted.

Engineered Propulsion Systems reached a milestone this week in building the concept diesel aircraft engine.  After four weeks of governmental hassle (Department of Homeland Security and the EPA) the two BMW diesel engines needed for parts finally arrived in New Richmond.  Some of these parts will be used directly in the concept engine.  Work on the crankshaft and engine block is moving along and contracts with critical partners that will produce other portions of the engine system are either in negotiation or have been completed.  They are on schedule for a running engine in June.  This will occur up at the New Richmond Area Regional Airport.  Once this is completed, the next step will be the flyable engine due to be completed in the summer of 2012.  We will keep you posted as to progress.  In the next couple of weeks, we hope to be able to announce several new businesses arriving in NR.  Our target for 2011 is to create 100 jobs.  This appears in our reach.  Again, if you hear any rumors of someone wanting to start or move a business, just post a response here.  Thanks for all your support.

The New Richmond area Economic Development Corporation held its annual meeting on January 18 at Ready Randy’s.  Over forty local business men and government officials attended and got a update on the success in 2010 and the plans for 2011.  In review, we worked with 53 companies in 2010.  That was up from 46 in 2009.  Of those 22 were recruitments from outside the city, 9 were retentions of local businesses, and 22 were start-ups.  Of those, 8 were completed and 35 jobs were created.  In all, a good year.  The CBED grant we received in 2010 allowed us to update the NRAEDC website which is up and running and can be found on the City of New Richmond’s home page.  Our plan for 2011 is to recruit 55 clients and target the creation of 100 jobs.  Guests speakers at the meeting were Engineered Propulsion Systems which gave an update on their diesel aircraft engine, Federal Foam who describe their expansion plans, and a demonstration of the new website.  It was a great meeting and the hope is that it will spark more activity and maybe a few new members.  If interested, please contact me.

Next Tuesday, the NRAEDC will hold its 2011 Annual Meeting.  This is an event where the business leaders in the community have a chance to network and to hear about the job creation progress.  Guest speakers this year are Michael Fuchs and Steve Weinzierl from EPS, the aircraft diesel engine company, and Wyman Smith and Bill Jwanouskos from Federal Foam Technologies who will speak on their business development and how it will impact the job market in New Richmond.  Greg Leaf from Group Leaf in Hudson will demonstrate the new NRAEDC website and it new features.  Should be a great evening since Paul Werni from 45th Parallel will be sampling his products as well.  It will be the start of a dynamic new year.

2010 is over and it was a great year for economic activity in New Richmond.  The NRAEDC and the City of New Richmond worked with 53 clients that ranged from start-ups such as Casual Affair Boutique, to expansions like Federal Foam Technologies, to recruitments like SWing and Whip Air.  It is obvious that even in tough economic times, if you have a supporitng environmonet for businesses, they will come.  In looking at the job creation that was accomplished this last year, it totals about 35 new jobs with many more pending.  Of course, we lost a few as well, but the hopper is full and we should see a good 2011.  As always, if you hear of anything that even sounds like a new business opportunity, let me know.

Have you ever been standing in the shower and a brilliant idea hits you and you begin to wonder if you could launch it and become wildly successful?  Well, that is generally how it happens.  The difference between those that succeed and those that do not, is mostly taking that first step.  There are many things to consider in launching a new business.  That is what our Emerging Business Center is all about.  It provides necessary help in determining if your idea can become reality.  It will help you walk through those steps in determining if anyone wants, and will pay for, your shower idea.  If you have one you would like to discuss, just contact us.  That is what we are hear for.

Starting last year, the New Richmond Area Economic Developemnt Corporation (NRAEDC) website was moved to the City of New Richmond’s website so that visitors could get all their information in one stop.  This year, the State of Wisconsin gave the NRAEDC a grant to work with start-up companies.  Part of that grant is being used to improve the website with a targeted completion date of the first of the year.  This will be a comprehensive improvement in content and photos that will assist all companies in finding out the resources that the city has to help them get started.  When it is up and running, we will post that information here.  Again, let us know if you hear of anyone looking to expand or relocate.

Most small businesses, at one time or another, have questions that they cannot answer.  Most employees expect the owner to be able to respond to any condition.  Most owners have several outstanding skills, but none have them all.  So what do you do when faced with an issue that you do not have the experience to deal with?  The Business Owners Forum was formed in 2009 to address just that.  It is made up of small business owners that get together every other month, for 3 hours, to ask questions and to get answers.  Most problems have been solved by someone.  To get the input you need, you only need to have enough people around the table.  If you are interested to finding out more about this group, please contact me.  Our next meeting is on December 16 and you are welcome to attend as my guest.  We all can make our businesses more successful if we reach out to those willing to help.

Everyone gets an idea for a new business.  In most cases, they are unsure of what steps to take to find out if the idea is viable and if they can make money.  The New Richmond Area Economic Development Corporation has a division, the Emerging Business Center, whose goal is to help new businesses get started.  Whether is a business plan, help with incorporation, accounting talent, marketing, money, etc, we can help you evaluate your idea.  Just contact us and we will sit with you and discuss how we can help.  IN the last 2 years, we have worked with over 40 start-ups, some of which are up and running today.  The majority of employment today comes from small businesses.