TUE AM News: WMC survey finds businesses delaying, shrinking projects due to high interest rates; State community health centers expanding mental health capacity

August 6, 2024

— Forty-four percent of respondents to a recent WMC survey are delaying or shrinking projects or capital expenditures due to high interest rates.

Wisconsin Manufacturers & Commerce yesterday released findings from its latest Wisconsin Employer Survey, which found respondents continue to have a largely negative view of the state economy. Just 23% said the Wisconsin economy is strong, similar to the response to a survey six months ago but well below the 39% who rated it as strong last summer.

Thirty-five percent of respondents said inflation was the top issue facing their company, followed by 25% pointing to the workforce shortage and 16% saying health care costs.

Since January 2021, more than half of responding businesses have seen costs increase by over 20%, while one-fifth have seen costs rise by more than 30%.

“Higher costs are putting pressure on everyone right now,” WMC President and CEO Kurt Bauer said in the report. “Unfortunately, that means businesses and families have to make tough decisions that have a negative impact on our economy.”

Over the past 18 months, the share of businesses that plan to add more workers has dropped from 60% in an earlier survey to 39% this summer. Report authors note that drop comes as fewer businesses are struggling to hire employees, moving the workforce shortage lower on the list of top concerns.

“There is no question that the mix of higher costs and higher interest rates are making employers rethink investment and hiring plans,” Bauer said. “While we may not enter into a typically defined recession, this data shows that the economy may stagnate at least through the end of the year.”

Fifty-three percent expect the state economy will remain flat over the second half of this year, while 36% predict moderate growth, 8% predict a decline and 3% expect to see good growth.

When asked about future plans for paying workers, 22% said they will increase wages less than 3% this year and 71% said they will boost wages by more than 3%. Another 6% said they will keep wages the same.

The survey was conducted over the first three weeks of July over email and traditional mail.

See the release and results.

— Wisconsin’s community health centers have greatly expanded their mental health care capacity over the past two decades, going from 5,619 mental health patients in 2003 to 25,249 last year.

That’s according to a report from the Wisconsin Primary Health Care Association created on behalf of the state’s 19 community health centers, released yesterday for National Community Health Center Week. Seven of these facilities are designated as rural, while the other 12 are urban, including five in Milwaukee.

The centers often provide care for people in “high need” and otherwise underserved communities regardless of insurance status or their ability to pay. Seventy-five percent of these patients live at or below 200% of the federal poverty level, and 20% aren’t insured.

To accommodate seeing more patients for mental health care, centers went from 24 mental health provider full-time equivalents in 2003 to 192 in 2023, the report shows.

Following a similar trend, the number of mental health visits conducted each year rose from 29,205 in 2003 to 166,600 last year. These federally qualified health centers last year collectively served more than 287,600 patients across the state, which includes the mental health total.

Between 2020 and 2023, the centers collectively expanded mental health care capacity by 25% as the COVID-19 pandemic exacerbated existing psychological problems, particularly for young people. The number of school-based patients at these centers has increased, going from 4,325 in 2019 to 7,463 in 2023. Most student patients were treated for behavioral health issues.

The report also notes virtual health care has grown “exponentially” post-pandemic, giving community health centers more options for reaching patients.

A quarter of all mental health visits were virtual in 2023, and virtual mental health visits made up 57% of all virtual visits conducted across centers’ service lines.

Policy recommendations in the report include adding behavioral health providers to a program that forgives up to $50,000 in loans for those willing to work in a high-need area, and making it easier for certain care providers such as substance abuse counselors already licensed elsewhere to transfer a license to Wisconsin.

See the release and report.

Top headlines from the Health Care Report…

— Health officials have confirmed the state’s first West Nile virus infections of this year, indicating the presence of mosquitoes in Wisconsin that can transmit the virus.

For more of the most relevant health care news, reports on groundbreaking research in Wisconsin, links to top stories and more, sign up today for the free daily Health Care Report from WisPolitics and WisBusiness.com.

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— Generac has acquired Colorado-based Ageto, which provides microgrid controller technology for managing energy resources including electric vehicle chargers.

The Waukesha-based energy technology company yesterday announced it had acquired Ageto at the start of the month. The businesses had previously worked together since 2021, as Generac integrated microgrid controllers into its battery energy storage systems and related equipment.

Erik Wilde, executive vice president at Generac, says the acquisition improves the company’s ability to “offer a complete energy technology ecosystem to domestic commercial & industrial customers” with multiple assets.

“By integrating Ageto’s industry-leading microgrid controller and advanced software into our systems, we’re simplifying asset integration, control and optimization for our customers and creating a competitive advantage,” he said in a statement.

Financial terms of the deal were not disclosed.

See the release.

— Harvesting of oats and winter wheat in Wisconsin is proceeding ahead of schedule, the USDA reports.

The federal agency’s latest crop progress report shows 45% of oats for grain crops have been harvested, three days ahead of last year’s rate and six days ahead of the five-year average.

Wisconsin’s winter wheat crop was 86% finished — eight days ahead of last year and nine days ahead of the average.

Meanwhile, corn and soybean growth are both one day behind both last year and the average, the report shows.

Authors note “warm and mostly dry” conditions last week enabled progress in row crop development and small grain harvesting, while “timely rain” in parts of the state helped boost crop and pasture growth.

See the report.

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