Driven by many business successes

Banks, fast food feed off healthy local economy

By DAVE RANK - Daily News Staff

January 24, 2007

If the measure is either the number of new banks in the county or the number of recent manufacturing expansions, or the number of food chain additions, Washington County’s economy must be in pretty good shape.

There have been a few negatives, such as the departure of the Gehl Company from the farm equipment business. But, in general, the news of late has been positive.

As one barometer of economic health, look at the explosion of bank openings here. At last count in the Yellow Pages, a rush of new banks has raised the total to 18 in the county, with more than 50 branches. West Bend alone has 15 bank flags and 22 branches. Plus, there are two credit unions.

Several long-time bankers just shake their heads and say that the county is "over-banked."

If that’s true, it’s a reflection that outside banks like what they see in the demographics, population growth and relatively high standards of living in Washington County. Business people vote with their feet, and they’re moving here from surrounding counties.

The increased competition will be good for consumers who are getting better rates. It also works for business looking for commercial loans. Consumers can take their pick of locally based institutions or branches of big state or national banks.

Bankers say their margins between lending and deposit rates have tightened. It’s capitalism at work.

M&I was the county deposit leader on June 30 at $415 million, followed by West Bend Savings at $317 million, MidAmerica Bank at $158 million, Hartford Savings Bank at $151 million and JP Morgan Chase at $140 million.

Beyond the banking boom, the county has also been a magnet for service industries, especially for restaurant franchises. Recent entrants include Jimmy John’s, Texas Roadhouse, Qdoba and (coming soon) Panera Bread.

The boom in banks and food franchises is more a product of a strong local economy than a driver. The engines of any economy are those businesses that export their goods or services beyond the local boundaries.

In Washington County, the big drivers remain agriculture and manufacturing. It is conventional wisdom that manufacturing is headed nowhere but down, but recent evidence points to the contrary.

First, most manufacturers are turning out a lot more product with the same or fewer people. Production and productivity are up, up, up.

Second, many are adding an array of services, as well as products.

Third, there is some growth.

Hartford, in particular, has done a great job in defending and growing its manufacturing base. Thanks to its commitment to industrial parks, the city has about 5,000 manufacturing jobs.

But West Bend has recorded some nice wins, too. Gehl Guernsey is opening a new 116,000-square-foot plant that will employ more than 100 people.

Metalcraft of Mayville is adding 55,000 square feet and, reportedly, some 150 jobs. Other additions have been made by Barton Solvents, Jackson Concrete, JKA Enterprises, Cole Manufacturing and Hy-Tech Forward.

So, there’s life in manufacturing, and that’s most encouraging.

A future source of strength can be seen in the expansion of Hy-Tech, which makes parts for the biomedical device sector that is booming in the region.

The cities and county have been on target in their strategies of standing up for both farming and manufacturing, but we also need to catch the biomedical wave.

When those prime movers are healthy, the banks and service firms, such as restaurants, are sure to follow.