Recently, I saw a commercial where a child asked, “What is the economy, and why is it important?” In the commercial, the adults could not answer the question. It is not an easy answer, as the economy is so broad.
The economy encompasses all of the ways that goods and services are traded, bought and consumed by the people in the community. All of us and our activities affect our economy. Whether it is choosing to purchase a new couch, going out to dinner or a company deciding to add on a new production line, all of these decisions affect the larger economy. The economy is thus affected both by our decisions, and our decisions are often affected by what is occurring in the economy. In good times, when businesses are doing well, people are usually working more and making more money. This leads to individuals making more purchases, which in turn adds to the economy.
Additionally, during these good times, governments collect more taxes as more items are purchased, which allows them to increase their budgets, often putting more money into the economy by improving infrastructure and creating new programs. A rough economy can have the opposite effect.
As business people, understanding what is happening in both the national and regional economies is key to our success. If you are considering an expansion, understanding whether interest rates will be dropping or rising is key. A half-point interest rate change can significantly impact the project’s cost, but understanding whether these changes will occur and if the price of waiting may be higher is vital to your business’s success.
Having just finished closing our books on the first six months of the year, many of us are starting to put together an initial draft of our 2026 budget. Understanding where the economy is now and where it might be going is key to that process. As a local business, if the economy appears to be weakening, you may want to look at your marketing budget and cash reserves to help you weather the challenges. In contrast, a stronger economy may have you looking at product expansion.
On Tuesday, Sept. 30, OED will be hosting its annual Business of the Year/Economic Forecast Breakfast. The program will honor three local businesses — Aurora Medical Center- Grafton, K Komfort and Hahn Ace Hardware Mequon as our businesses of the year.
Following this, we will hold our annual economic forecast. The forecast is a panel discussion that explores issues affecting you and your business, including the market’s direction, potential impacts on the Wisconsin economy and how national politics influence local businesses. The program provides local businesses with a snapshot of the current economic trends and how to leverage this information as you look to 2026 and beyond.
Registration for the program has opened — individual seats are available for $30, or tables of eight are available for $225.
Registration can be found at www.ozaukeebusiness.org/newsevents, or you can contact me at kschilling@ozaukeebusiness.org.
Also, a reminder the third session of the OED and Chambers of Commerce Best Business Practices will be on Tuesday, Sept. 9 from 7:45 a.m. to 9 a.m. at the Kacmarcik Center for Human Performance. This session will focus on how to improve your productivity, motivate your employees, and boost your bottom line. Registration for this session is currently open, but there are limited seats available. The cost of the program is $25 for Chamber or OED members and $30 for non-members. Contact either OED or your local Chamber to register.
As we start to move forward to 2026, make sure to take advantage of these opportunities to increase your knowledge.
Kathleen Cady Schilling is executive director of the Ozaukee Economic Development.