A recently released BMO Harris Bank study found that the majority of business owners/executives in Wisconsin plan on investing in their business in 2014. Upgrading or purchasing new equipment, along with adding to their work force were cited as the primary expenditures planned.
BMO Harris Bank reports that 56 percent of study respondents in Wisconsin plan on investing in their businesses in 2014.
“The economic recovery that has been taking place over the past few years has been driven by businesses of all shapes and sizes,” Jeff Ticknor, managing director and head, commercial banking in Wisconsin for BMO Harris Bank, said in announcing the study. “With that in mind, it is promising to note that, in the coming year, a majority of business leaders in Wisconsin have plans to invest capital back into their businesses in pursuit of further growth.”
When business owners/executives were asked where they would make those business investments:
- 28 percent said they would upgrade or purchase new equipment;
- 20 percent plan to hire more employees; and
- 20 percent were planning to expand operations.
Fewer than half (44 percent) of respondents in Wisconsin are not planning business investments in 2014, with the current economic climate (28 percent) and a lack of capital on hand (20 percent) cited as the primary reasons.
When business owners/executives nationwide were asked where they would make business investments:
- 42 percent said they would upgrade or purchase new equipment;
- 26 percent planned on hiring more employees;
- 25 percent were focused on modernizing technology and systems; and
- 24 percent planned on expanding operations.
Notably, business executives and owners of companies with revenues of over $20 million per year were particularly bullish, with more than 80 percent planning on investing in their business in 2014.
As for funding, the majority (58 percent) nationwide plan on making their business investments with cash reserves; 11 percent plan to fund the investments entirely through borrowing; while 31 percent plan on doing a combination of both.
The BMO Harris Bank survey was conducted by Pollara with an online sample of 601 American business owners in November, 2013. A probability sample of this size would be accurate to +/- 4%, 19 times out of 20.