Official magazine of Wisconsin’s Chamber April 2015: Issue 14

Defending Freedom Wisconsin Defense Contracts Page 20

Inside:  Wisconsin Manufacturer of the Year Award Winners p. 3 Technology, Safety Features and OSHA – Everyone Needs to Get on the Same Page p. 28 Detachable Legislative Directory p.35

WISCONSIN In this issue… Business Voice 2 Charting Progress in Closing the Skills Gap Kurt Bauer, WMC

3 Wisconsin Manufacturer of the Year Award From the Editor Winners This year marks the 27th Annual Wisconsin Manufacturer of the 5 CRighthris toreader, Work Mythwmc Busting Year award program. Seven worthy companies were awarded at a black-tie 6 Simple, Just Not Easy ceremony in Milwaukee in February. Jim Morgan, WMC Foundation I have attended the Awards Dinner every year since starting with WMC 8 With Right to Work Legislation Done, What’s in 2004 and I am still always in awe Next? of the quality of companies and the scott Manley, WMc caliber of people who call Wisconsin home. 10 Wisconsin’s International Business Driver Mike shoys, WMC Each winner is encouraged to say a few words to the room filled with Five Reasons Right to Work Got Done their peers, and in many cases, 14 Charlie Sykes competitors. Some company leaders’ remarks are short and sweet, some 17 The Workplace of Tomorrow: A Millennial are detailed and specific – but all Perspective are passionate and genuine. There’s steve Benzschawel, WMC/Wisconsin Business usually a tear or two, and often a World shout-out to parents who may have started the company that the son or daughter has grown into an empire, employing hundreds and sometimes 18 Technology, Safety Features and OSHA – thousands of people. JanieEveryone Ritter, Needs WMC/Wis to Get onconsin the Same Safety Page Council The entire evening is inspiring – that more than 500 people would get all dressed up (yes, tuxes and evening gowns!) in the middle of winter and travel to Milwaukee to eagerly await the announcements of which 20-23 companies shall receive the coveted awards. It is a celebration of all that makes Wisconsin the great state it is today – hard work, dedication, loyalty, Defending Wisconsin’s community, family. Freedom: Defense This is just one of many reasons I am so proud to work for WMC, our state Contractors in Wisconsin chamber of commerce, where we represent manufacturers and all the companies in Wisconsin. You are the backbone of our economy – you are the reason our families thrive here. So thank you. Keep up the good work. 26 The School District of Beloit’s Career Technical sEducationteve McN ealProgram

28 WhoBen bE isM MikeyIS the Manufacturer?

Editor, Wisconsin Business Voice [email protected] 30 EPAeric ProposesBott, WMC Most Expensive Air Rule Ever

32 The Ethanol Blend Wall: How a Federal Policy Cover details: The first U.S. Navy Littoral Combat Ship, USS Freedom (LCS Threatens a Key Wisconsin Industry and the 1), the inaugural ship in an entirely new class of U.S. Navy surface warships, Contents of Your Garage is seen conducting a speed run during Builders Trials. The ship was built by Marinette Marine and is designed for littoral, or close-to-shore, operations 34 JasonBudget Culotta, Presents WMCOpportunity for Tax Reform and to provide access and dominance in coastal-water areas. (Marinette, WI, Aug. 4, 2008 - Photo provided courtesy Lockheed Martin /Released) 35 Removable Legislative Directory

State Budget Process Wisconsin Business Voice is published quarterly by Wisconsin Manufacturers & 38 sen. Erpenbach (D-Middleton) and Rep. Nygren Commerce. WMC is Wisconsin’s chamber of commerce, manufacturers’ association, (R-Marinette) and safety council representing businesses of all sizes and from every sector of the economy. Send address changes to WMC, P.O. Box 352, Madison, WI 53701-0352. WMC's physical address is 501 E. Washington Avenue, Madison, WI 53703, 40 Wisconsin shannon Full, Goes Fox to Washington Cities Chamber of (608) 258-3400. This publication is proudly printed on paper made in Wisconsin. Commerce Kurt R. Bauer, WMC President/CEO Katy Pettersen, Editor ([email protected]) Jane Sutter, Designer ([email protected]) Charting Progress in Closing the Skills Gap Kurt R. Bauer, WMC President/CEO

nrollment in manufacturing- But while we should be pleased with our progress, we know related courses at Wisconsin’s there is a lot more work to be done to close the skills gap E16 technical colleges has increased in manufacturing, let alone the expanding worker shortage 26 percent since 2012. That doesn’t in other fields like information technology, accounting, mean the skills gap has been closed healthcare, teaching, etc. or that Wisconsin manufacturers Sixty-four percent of WMC’s member CEOs said in our now have a reliable pipeline of winter economic survey that they are having trouble finding workers to replace the retiring Baby workers, up from 53 percent last summer. That is likely why Boomers. But it does mean that we when asked in the same survey “what is the top business are making progress by working concern facing your company” 26 percent said “labor together to expose young people to availability.” manufacturing career options and by better aligning education with in-demand jobs. The sad irony is as the economy improves, demand for workers rises. But if businesses can’t find the workers, the Credit for the increased awareness of and interest in economy can’t improve, at least not to its full potential. manufacturing-related careers goes to many people and entities, including leaders in Wisconsin’s K-12 districts Case in point, Ashley Furniture recently announced it would (see column by former Beloit Public Schools forgo a planned expansion in Western Wisconsin in part Superintendent Steve McNeal because of a lack of workers. The on page 26), the Wisconsin state’s unemployment rate Technical College System, “The sad irony is that as the economy is just under 5 percent, the the Wisconsin Department improves, demand for workers rises. But lowest since 2008. But it is of Workforce Development, 4.5 percent in Trempealeau the Wisconsin Economic if businesses can’t find the workers, the County where Ashley is Development Corporation and economy can’t improve…” located. local chambers of commerce. Ashley’s decision makes me WMC deserves some of the credit as well. wonder which is the bigger challenge for Since 2011, WMC has hosted three workforce summits Wisconsin’s economy, creating new jobs or filling existing to bring together businesspeople, government officials ones? Given that Wisconsin’s unemployment rate is still too and educators. Those summits have helped improve high and the labor participation rate is at or near a record communication and cooperation between manufacturers low, there should be enough supply of workers to meet the and K-12 districts and technical colleges. It also led to demand for jobs. But clearly that isn’t the case, at least in October being designated as Manufacturing Month in some parts of the state and in some professions. order to celebrate Wisconsin’s rich manufacturing past WMC will continue to work on addressing this issue via The and promote its promising future. Another important goal Future Wisconsin Project, which has identified workforce of Manufacturing Month is to expose young people to and business climate as its top two priorities. In fact, at the how things are made and the careers available in advanced first annual Future Wisconsin Economic Summit, held last manufacturing, including what kind of training is required to December in Milwaukee, WMC committed to developing pursue them. a better jobs projection mechanism for the state. The goal is Of course not all people enrolling in manufacturing-related to help young people make career and thus, education and courses are recent high school graduates. Many are displaced training choices based on good data of what jobs will be workers looking for new opportunities. They have heard that available when they enter the workforce. BV Wisconsin manufacturers have good paying jobs available to people who want to work, are drug free, interested in learning new skills and, in some cases, are willing to relocate. Follow Kurt on Twitter @Kurt_R_Bauer

2 Honoring Manufacturing Excellence in Wisconsin

This February, seven Wisconsin companies were awarded a prestigious Wisconsin Lt. Governor Rebecca Kleefisch addressed the sold-out crowd. Manufacturer of the Year Award, competing against 40 total nominees. The winners were announced at a black tie banquet at The Pfister Hotel in Milwaukee. Celebrating its 27th year, the MOTY program recognizes manufacturers of all sizes and industries for their contributions to the great state of Wisconsin. The Wisconsin Manufacturer of the Year award winners were selected by an independent panel of judges representing industry, education, and the public sector. MOTY Winners 2014 Special Award Winners

The hosts of the evening were Jim Morgan, President, WMC Foundation; Tod Linstroth, Managing SWORT LL H E TM Partner, Michael Best & Friedrich; EST. 1910 C O Y O R E P E M and Tim Christen, CEO, Baker Tilly R A AT I V E C R E Virchow Krause. Marketplace Opportunity Employee Development & Commitment Special Award Special Award

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Chris Reader WMC Director of Health & Human Resources Policy

Right to Work Myth Busting n March 9, Governor Walker signed 2015 Act 1, making union or not. The union training argument is premised on the belief Wisconsin the 25th Right to Work state in the Nation. Even that if workers no longer find value in the union and stop paying Othough the law is now on the books, there are some misconceptions dues, the union would have less money to pay for training. While that I want to clarify. These misconceptions are due in no small an interesting theory, union dues don’t pay for training. Employers part to the large campaign of misdirection and deception waged do. Need proof? The IRS 990 tax forms filed by the Operating by unions and lobbyists while the bill was being considered by Engineers and Carpenters Union state that employers pay for the lawmakers. WMC countered the union propaganda by talking to training. lawmakers one-on-one and we helped lawmakers see the truth Myth 3. Safety. Tied to worker training, the unions often say about the bill. safety in the workplace suffers in Right to Work states. While Before addressing the myths, let me explain what Act 1 actually this might be convincing rhetoric, it’s not reality. Like worker does. It’s really very simple – it protects workers from being fired training, workplace safety is of utmost importance to employers, for not joining a union or refusing to pay union dues. What that not only because it’s right, but also because it doesn’t make sense means is each employee is now allowed to decide whether or not to be unsafe and have expensive worker’s compensation claims. they find value in the labor union and want to join, rather than Workplace injuries don’t happen because employees are forced being forced into paying dues to hold a job. That’s it. It doesn’t to pay union dues or not – rather, a state’s safety record is largely eliminate existing unions, it doesn’t void existing labor contracts, it dependent on the industrial makeup of that state’s economy. doesn’t prohibit collective bargaining and it doesn’t stop a worker Myth 4. Middle Class. Personalizing the issue, union bosses claim from joining a union. Right to Work laws are anti-middle class and drive down wages. Myth 1. Free-Riders. Reviewing objective data shows a different story. Right to Work Opponents of Right to Work WMC countered the union states created 2.1 million more jobs from 2004-2013, saw use this myth often. Despite wages grow 6.9 percent more than in forced-union states how often they repeat the propaganda by talking to and workers had, when adjusted for cost of living, $2,000 claim, however, it’s completely lawmakers one on one. more in disposable income. untrue. What they claim is Myth 5. Anti-Union. Seeing how hard the unions fight to that unions are forced to provide maintain their grip on compulsory union dues, one would surmise representation to all employees; therefore people who stop paying Right to Work states are hostile to union membership. That’s dues receive the union’s supposed benefits without having to pay certainly the picture painted by union lobbyists. Looking at the their fair share. What the unions don’t say is that the unions can objective data though, a different story emerges. In the last four decide to be members-only organizations, which would free them years, union membership has increased in Right to Work states by of the supposed free-rider issue. Think of this argument outside of 57,000 workers; conversely, forced-union states lost 248,000 union the union arena – organizations like WMC and local chambers of members. Another interesting point is union leaders earn about commerce have to prove their worth to their members every year $20,000 less and union dues are about 10 percent less in Right to or members will drop out and not pay their dues. With Right to Work states. Work, unions now have to convince their members there is value to membership. Despite the attempts by labor unions to misdirect on the issue, lawmakers saw through these myths and others and passed Right Myth 2. Worker Training. Probably the second most repeated to Work for Wisconsin. While not a silver bullet for our economy, claim is Right to Work will cause worker training to suffer. This Right to Work is a large step forward in making Wisconsin claim is equally illogical. To accept this argument is to say 88 competitive for companies looking to grow and expand, and percent of the private workforce that is not unionized in Wisconsin continues the trend in recent years of making Wisconsin the most is untrained and unsafe. That’s simply not true. Employers know competitive state in which to do business. BV the value of having highly trained workers who operate safely – that’s why employers invest in training whether their workforce is Follow Chris on Twitter @ReaderWMC 5 Wisconsin Business Voice BUSINESS & EDUCATION

Jim Morgan WMC Foundation President

Simple, Just Not Easy alk a mile in my shoes” is a quote that ends in a variety Watch Jim explain more about his column: of different ways, but each one makes roughly the same www.wmc.org/bv “Wpoint… we often see the world through the lens we want to see it through. We want the world to match our view, and will often go through some massive rationalization to make it fit. So, which group said what? All five were brought up in both Case in point: I had back-to-back meetings the other day, the first meetings! Read them again from either perspective. with a group of business leaders and the second with a group of As I have mentioned in this column before, I am from a mixed school leaders. I was struck by the discussions. Both were frustrated marriage. I work for WMC, the state’s chamber of commerce by politicians who wouldn’t listen, a media that was biased against and leading business association often referred to as the 800 them and a public that didn’t understand their challenges. pound gorilla in the public policy arena. My wife is a teacher Guess which of the following stories came from business and and a member of the local and state union. For 30 years we which from education: have challenged each other’s facts and dismantled each other’s myths. But much more often than the disagreements that have “Every time there is a single outlying problem, all of us are entertained our children for years, comes an understanding of just tagged with it… and the government feels they need to do how desperately the people we represent need the group the other something about it. When I see the headline, I know what is one represents. coming next and I just cringe. The generalization that one bad example represents an entire group of people is an insult to all It’s not rocket science. The number one issue facing businesses of us who do our job well every day.” today is a shortage of talent. And it is only going to get worse due to our state’s “All we are looking for is a little Which group is in the best position to demographics. Which group is in consistency. Every time new the best position to help ensure laws are passed, or in some explain the skill set needed to succeed in every student has the ability to cases just introduced, everyone today’s ever-changing world and provide the be career, college and community has to scramble. We just start ready? making progress toward a set connection between what is being learned The students attending school of requirements and the rules of today and what will be earned tomorrow? the game are changed. Certainty today are nothing like my classmates is critical to us getting the job done and from when I grew up. They face issues political gamesmanship makes it very difficult.” I never dreamed of, master technology that didn’t even exist for me and do it in a much more diverse school climate that brings “As we are made out to be the bad guy, many think it will just another level of challenges. Which group is in the best position drive families somewhere else in the state. The real concern is to explain the skill set needed to succeed in today’s ever-changing we will drive them right out of Wisconsin.” world and provide the connection between what is being learned “We cannot run things like we did in 1950. Our facility, and the today and what will be earned tomorrow? way we operate, looks nothing like it did two generations ago. Entertainment Executive Tom Freston is credited with saying, We are being held to a much higher level of accountability, with “Innovation is taking two things that already exist and putting more regulations, and we are doing it under tighter budgets.” them together in a new way.” It is that simple with business and “If people from the outside would just come in and see us in education. BV action, they would be blown away by the innovation, creativity and problem-solving that goes on every day.”

6

LEGISLATIVE PRIORITIES

Scott Manley WMC Vice President of Government Relations

With Right to Work Legislation Done, What’s Next? any said it couldn’t be done, that it states that have grown jobs and wages would never happen. twice as fast as forced-union states over the WMC: Driving the Train on Right MFor the twenty years I’ve been involved in last 10 years. Wisconsin policymaking, the notion of Wisconsin is now better positioned to to Work Wisconsin becoming a Right to Work state compete for manufacturing jobs with WMC Received Credit from a Number of Key was the pinnacle of political impossibility. neighboring Right to Work states like Sources: But we did it. Michigan, Indiana and Iowa. “The Wisconsin Manufacturers & Commerce, the statewide chamber of commerce, Kurt With the help of bold leaders like Senate Governor Scott Walker correctly described Right to Work as another tool for Bauer, Scott (Manley) and Chris (Reader), the Majority Leader Scott Fitzgerald and team, You guys have done a tremendous job on Wisconsin business to compete and grow Assembly Speaker Robin Vos, Wisconsin this so thank you for your leadership.” - Gov. became the 25th Right to Work state when jobs. Scott Walker at the Right to Work Bill signing Governor Walker signed Act 1 into law Along with the 2011 Manufacturers’ Tax Monday, March 9, 2015 last month. Credit, the machinery and equipment tax “This train is being driven by Wisconsin While WMC led the charge from a exemption and many recent legal reforms, Manufacturers & Commerce“ - Milwaukee lobbying and advocacy standpoint, Right to Work allows Wisconsin to make Journal Sentinel, February 23, 2015 employers and employees owe a a compelling case that there is no better “WMC played absolutely essential role on debt of gratitude to each of the 17 place in America to be a manufacturer. pushing Right to Work. This would not be Republican Senators and 63 Republican Yet there is more work to be done. happening without groups like WMC. When the politicians didn’t want to lead, WMC rallied Representatives who supported the bill’s Wisconsin’s transformation into the most passage. support for Right to Work” - Charlie Sykes, competitive state in the nation just took WTMJ-AM on air, Friday, March 6, 2015 The importance of enacting Right to Work an enormous leap forward with Right to When President Obama attacked Governor in Wisconsin cannot be overstated. We Work, but the transformation remains Walker, WMC delivered the business message: are now back on the map for businesses incomplete. Having the Governor sign “Obama’s statement drew a rebuttal from looking to expand or invest in our state. We a historic reform like Right to Work as Wisconsin Manufacturers & Commerce, one join the ranks of 24 other Right to Work the first new law in a two-year legislation of the chief proponents of the Right to Work session necessarily legislation. In a statement, WMC President Kurt begs the question: Bauer said “It’s disappointing that President What’s next? Obama has come out against a policy that gives workers freedom of choice in the workplace. Tax Reform. Despite The fact is, right to work states grow jobs and commendable wages twice as fast as forced-union states do. efforts to reduce By contrast, the President supports a wage the tax burden by policy that the Congressional Budget Office more than $2 billion said will likely kill 500,000 American jobs. Gov. over the last four Walker remains focused on providing freedom years, Wisconsin and economic opportunity to workers.” - remains among the Wisconsin Radio Network, March 10, 2015 10 highest-taxed “The Next Right to Work Victory: A poll released states in the country. in January by Wisconsin Manufacturers & WMC’s Scott Manley and Chris Reader testified before an Assembly Commerce found that 69 percent of likely Committee hearing on Right to Work legislation. voters support right to work…” - The Wall Street Journal, February 20, 2015 8 Repealing Governor Doyle’s 2009 income tax hike and repealing the tax on personal property are two opportunities for significant reform. π Regulatory Reform. Providing the Governor SHIPPING SUPPLY SPECIALISTS with the authority to veto agency rules was an important step toward comprehensive regulatory reform. Lawmakers must take the next step toward accountability by WArEHoUSE requiring agencies to obtain the approval of ESSENTIALS the Legislature by vote of both the Senate and Assembly to approve rules costing $25 million or more. Family Medical Leave Act Reform. Wisconsin remains one of a few states with our own FMLA law in addition to the federal regulation. The state FMLA conflicts with the federal law, adds complexity and confusion for Wisconsin employers and ordEr bY 6 Pm for is another legal liability facing businesses. The Legislature should conform the state SAmE dAY SHIPPING FMLA to the federal law, thereby easing the regulatory burden facing business. Worker’s Compensation Reform. Medical costs in Wisconsin’s worker’s compensation program continue to be significantly higher than those of many other states. These higher costs place Wisconsin employers at a competitive disadvantage by increasing the cost of doing business here. Lawmakers should enact meaningful medical cost containment in worker’s compensation to help place our employers on a level playing field. There are many other important issues the Legislature will confront over the course of the next two years. Fortunately, the Senate CALL for A frEE CATALoG and Assembly are controlled by bold reform- minded legislators who are continually looking for ways to make Wisconsin 1-800-295-5510 stronger and more capable from an economic uline.com growth and development perspective. Passing Right to Work was an incredible start to the legislative session. But it was only a beginning, and there is much more to come. BV Follow Scott on Twitter @ManleyWMC

WMC was on hand to witness the signing of 2015 Act 1, the Right to Work law, March 9 at Badger Meter in Milwaukee. Left to Right: WMC’s Kurt Bauer, Lt. Gov. Rebecca Kleefisch, Gov. Walker, Badger Meter’s Rich Meeusen, WMC’s Scott Manley and Chris Reader. EXPORTING

Mike Shoys WMC Senior Vice President

Wisconsin's International Business Driver By Mike Shoys

he Wisconsin Economic Development Corporation personal touch when dealing with Wisconsin businesses, (2) make (WEDC) is the primary governmental engine driving their services the more scalable for all Wisconsin businesses, and foreignT trade in Wisconsin. Formed during Gov. Walker’s first (3) engage the University of Wisconsin and other educational term in office, WEDC is a public-private partnership with the systems with international trade and encourage technical schools to overall responsibility provide more resources. for economic More specifically, the IBD intends to accelerate Wisconsin exports Foreign Direct Investment development in the in three ways: state. The International Another key element in WEDC’s Business Development • Identify export opportunities for Wisconsin. WEDC wants international business agenda is (IBD) department is to be more proactive in identifying export opportunities for foreign direct investment. Since 2003, responsible for foreign Wisconsin. They plan to focus efforts on countries whose needs there have been 103 foreign direct trade development match Wisconsin strengths, for instance food manufacturing investment projects totaling $7.8 including promoting or machinery production. Their intent is to leverage established billion in U.S. Capital expenditures and Wisconsin exports Wisconsin industry clusters such as The Water Counsel. creating 13,761 jobs in Wisconsin. The and foreign direct • Increase export knowledge and export strategic planning. The primary industrial sectors for foreign investment. department intends to reach out to various partners including technical schools, the UW System, the department’s regional direct investment in Wisconsin are I recently spoke account managers and commercial account managers, and the industrial machinery and chemical with Katy Sinnott, private sector to educate businesses on exporting and export vice president of projects. Major inflows of investment planning through programs such as boardroom briefs, one- international business dollars include automotive and on-one meetings, and peer-to-peer mentoring programs. An development for alternative and renewable energy important element of their plan is to offer specific training WEDC, who said the projects. The department views foreign programs around export strategy planning and design. mission of the IBD is direct investment as having long- ExporTech, which is highlighted in a separate article in this to enhance Wisconsin’s term benefit – often 18-36 months or issue of Business Voice, is a program WEDC co-hosts with global competitiveness WMEP, the U.S. Commercial Service and WMC. more. Their primary focus is business by accelerating exports attraction, and not Capital Investment, and promoting IBD hopes to expand the ExporTech program with an in five key clusters – manufacturing, Wisconsin as a foreign extended program modeled after the Virginia “Valet” program, food, biotechnology, energy, power and direct investment which extends the department’s export assistant services and controls, and water technology. destination. The IBD creates a pipeline of companies for the department to engage in trade ventures and grant opportunities. The department’s key foreign direct believes bilateral trade and export growth are The IBD also plans to leverage its team of over 50 authorized investment strategies are to increase key elements in the trade representative to inform companies about export options. the awareness of Wisconsin as a growth of Wisconsin Authorized trade reps are the department’s feet on the ground primary FDI destination, to develop an business. IBD’s tagline: in foreign markets, who perform industry, product and market FDI multiplier network, to connect with We help Wisconsin assessments, provide partner searches and facilitate meetings in foreign trade and investment agencies businesses grow overseas their markets. and industrial organizations, to fill so they can grow back IN • Provide exporting acceleration tools. The third element the FDI pipeline with foreign owned Wisconsin, is indicative of IBD’s accelerate export program is to provide specific companies located in Wisconsin and to of their mission. tools to companies just getting started or expanding their export ventures. These include trade ventures/missions, convert opportunities to win projects. Overall, IBD’s strategy grants to support the export process such as grants for trade is to (1) apply a show attendance, and keeping abreast of and disseminating 10 information regarding export rules and regulations and compliance strategies. Wisconsin businesses just getting started in international trade face a number of barriers. Small companies who see little growth in domestic markets may consider exporting but are intimidated by the prospect. They may have a fear of the unknown, ExporTech™: Developing Strategies for International Markets think they are too small or don’t know where to start. WEDC can alleviate those fears and provide guidance ExporTech™ is national export assistance program that helps companies on getting started. Bad experience in initial foreign enter or expand in global markets. Jointly offered by the National Institute business ventures and tariffs are also barriers to trade. of Standards and Technology’s Manufacturing Extension Partnership and The U.S. is working on the Trans Pacific Partnership the U.S. Export Assistance Centers of the U.S. Department of Commerce, to reduce tariffs with 12 nations. This is designed to ExporTech applies a structured export strategy development process consisting level the playing field in terms of bilateral trade – of three all-day sessions over a three month period that assists four to eight currently 55 percent of Wisconsin exports go to the companies accelerate growth through exporting. It is the only national program current TPP partners. where each company develops a written export plan which is vetted by a panel of experts upon completion. ExporTech efficiently connects companies with a The WEDC Board of Directors sets annual Key wide range of world-class experts that help navigate the export sales process. Performance Indicators to measure the department’s The result is that companies rapidly expand global sales and save countless success in achieving its goals. The primary KPIs for hours of effort. this fiscal year include providing ExporTech services to 40 companies, providing financial assistance to 100 In Wisconsin, ExporTech is managed by the Wisconsin Manufacturing businesses to help them expand their exporting efforts Extension Partnership with assistance from the Wisconsin Economic and providing technical assistance to 400 companies. Development Corporation and is sponsored by WMC and the U.S. Commercial Service in Milwaukee. Most Wisconsin business, particularly in the manufacturing sectors will, over the next 10-20 years, see their 111 $770,000 primary growth opportunities in Programs completed Average sales increase/retention foreign markets. Companies who would not have dreamed of exporting $400,000 $50,000 Sinnott their products 10 years ago may Total program sales (new/retained) to date Average cost and investment not survive without a viable export strategy. WEDC, under the able leadership of Secy. 603 Reed Hall and Katy Sinnott and her team at IBD, are Companies participated an important tool for Wisconsin business to create and Add Wisconsin numbers under the national numbers above. implement successful export strategies. BV For more information regarding ExporTech programs in Wisconsin, contact Roxanne Baumann, WMEP, (262) 422-8279, [email protected]

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13 Wisconsin Business Voice GUEST INSIGHT

Five Reasons Right to Work Got Done By Charlie Sykes

onventional wisdom would suggest that what just happened Wisconsin – free market ideas now have an outlet and an was impossible: Wisconsin is now the 25th Right to Work audience. Cstate in the country. The business community is willing to get into the trenches. This happened despite reluctance of the sitting governor, the WMC’s willingness to engage in vigorous issue advocacy has opposition of the mainstream media and an impressive lobbying changed the game. Let’s be honest here – at one time the effort by unions that included putting prominent Republicans on business community was politically risk-averse, often unwilling the payroll. So what happened? to mix it up with the media or the entrenched progressives in The victory of Right to Work suggests the political playing field has state government. As a result, there were occasional victories shifted in at least five significant ways: but they tended to be modest; and there were often stinging defeats. The legislature not only has a Republican majority, it has a conservative majority that is not content to rest on its laurels. Business faced two formidable obstacles: (1) Wisconsin had a long Those conservatives expect to get things done and are not tradition of progressivism, and (2) the principles of the free market content with reliving their victory on Act 10. The rank and file are often hard to explain to an electorate acclimated to the politics legislators ran for office as reformers and asked themselves “If of entitlements, taxes, and regulation. So pro-business advocacy was not now, then when?” This will be reflected in a host of issues both politically risky and a heavy lift. over the next few months. But groups like WMC have realized it is not enough to win The governor may set the agenda, but he no longer has a elections – they must also engage in the debate on ideas. And that monopoly. The Right to Work issue demonstrated how the is precisely what happened with Right to Work. center of gravity has shifted in With WMC in the lead (and its role cannot be state politics. In his first term, “With WMC in the lead (and overstated), free market advocates made the case Gov. Scott Walker drove the that workers should be able to choose whether or agenda and the legislature its role cannot be overstated), free not to join a union. That message was disseminated generally followed his lead. market advocates made the case that through the new media, percolated up from the But this legislation would workers should be able to choose grass roots, and it emboldened conservatives in the not have passed without the whether or not to join a union.” legislature. decision by Senate Majority In the end, the unionist left not only lost the vote, they Leader Scott Fitzgerald (R-Juneau) and lost the argument. Assembly Speaker Robin Vos (R-Rochester) to take leadership roles and call an extraordinary session. The move paid off – This is an important point – the legislative action would not have only a single Republican senator (and no Republican state been possible without public opinion. Polls consistently showed representatives) voted against the bill. strong majorities favored worker freedom. All that was needed was for the case to be made, support mobilized and for legislators Old interest group politics don’t have the same clout. to have the guts to act on it. As a result the inconceivable became Earlier this year a former Republican speaker spoke to the reality. new Republican caucus, urging them not to pursue Right to Work because it would alienate some of the unions who There’s a lesson in there somewhere.BV had contributed to their campaigns. In the past, this pay-to- Charlie Sykes hosts the political commentary and play argument might have worked. But on issues involving analysis show Midday with Charlie Sykes on WTMJ fundamental principles like worker freedom, it no longer does. radio. His work can also be found on Right Wisconsin. Sykes is the author of seven books The new media has transformed the landscape. If it had been including most recently A Nation of Moochers — up to the mainstream media, Right to Work would not only America’s addiction to getting something for nothing. not have passed, it would not even have been discussed. But the mainstream media is no longer the gatekeeper for ideas or issues. Through a variety of new media – talk radio, Wisconsin Reporter, the MacIver Institute, Media Trackers and Right

14 Business Day in Madison Business Day in Madison 2015 was a rousing success bringing together 1,200 business leaders from across the state. Attendees heard insightful and interesting commentary from Governor Scott Walker, John Stossel, KT McFarland, Ed Goeas, Senator Ron Johnson, Attorney General Brad Schimel, Head Coach Paul Chryst and Radio Host Charlie Sykes. Thank you to our sponsors and partners who help to make this annual event a success.

Charlie Sykes, Media Personality and KT McFarland, Fox News National Security Keynote Speaker John Stossel, host of Fox Business Day in Madison Emcee; Ed Goeas, Analyst, spoke at the event. Business Network’s Stossel. The Tarrance Group; and Brig. Gen. Mark E. Anderson, Deputy Adjutant General, Wisconsin Army National Guard.

Gov. Walker addressed attendees at lunch. UW-Madison Head Football Coach Paul Chryst A sold-out crowd of more than 1,200 with WMC’s President/CEO Kurt Bauer. business leaders attended the event. Save the date for Business Day 2016 - Wednesday February 24! MADE IN WISCONSIN

Adaptive Micro Systems (dba Adaptive Displays) If you’ve been to the Milwaukee County Zoo recently, you’ve likely seen the large full color LED sign at the entrance. This sign was provided by Milwaukee’s own Adaptive Micro Systems. Adaptive’s complete line of full color 7840 North 86th Street and single color LED outdoor and indoor displays are the preferred Milwaukee, WI 53224 choice for any business needing dynamic displays from commercial 414.357.2020 advertising to integrated transportation information systems. By Year Established: 1978 designing, manufacturing and testing all products in their state of the art manufacturing www.adaptivedisplays.com plant, Adaptive Micro Systems is able to take complete ownership of their products, services and support. They have LED signage systems installed in all 50 states, Puerto Rico and 19 other countries.

Kohler Co. You probably know Kohler Co. for the products they manufacture which are of the utmost importance for our daily use: toilets, showers, sinks and faucets. Kohler continues to enhance these everyday products by keeping traditional elegance while developing new models that conserve water and offer advanced features like touchless operation. You 444 Highland Drive may not realize that this diverse company also makes engines, generators, furniture and Kohler, WI 53044 tile, plus operates world-renowned hospitality and golf resorts. Today, with more than 50 920.457.4441 manufacturing locations on six continents, more than 30,000 Kohler associates present the Year Established: 1873 company’s concept of gracious living in every corner of the world. Kohler’s manufacturing www.kohler.com divisions in Sheboygan County also work closely with community and education partners to support continued development of the state’s skilled trades workforce. Proud to call Wisconsin home, Kohler has a rich tradition and are ever-challenging the status quo. Keg Products, Inc. With temperatures rising and the sun setting later in the day many Badger State residents have started to grill out again! Keg Products Incorporated, a manufacturer of barbeque equipment, was founded in Milwaukee by the McGourthy Family. Their signature product, the Keg-a-Que won the Governor Award in 1995, was licensed by the NFL in 1997, and today proudly recognizes over half a million Keg-a-Quers 704 North 10th Avenue from around the world! While known for their good looks, every Keg-a-Que Grill is designed Grafton, WI 53024 for maximum cooking performance. From the portable models to the back yard big boys, 800.232.5347 their versatile grills cook clean, even and fast. This patented grill has been a top seller on the Established: 1994 Home Shopping Network for years. With its compact size, sturdy frame, large cooking surface www.kegaque.com and transportability, it rivals any grill in its class. And when they say it “Cooks as Good as it Looks,” they mean it! MILLENNIAL GENERATION Steve Benzschawel Director of Business World The Workplace of Tomorrow: A Millennial Perspective he Millennials are coming! they are available 24/7, responding to emails from bed at 1:00 a.m. You’ve probably seen us Millennial parents will seek a supportive work culture that allows around,T but we might have been fathers and mothers to thrive in both parenting and their careers. staring at our phones and missed Managers who find untraditional ways to allow employees to work you. Born between 1980 and 2000, when and where they are at their most productive will attract we number close to 80 million and Millennial talent. outnumber any generation that came before us, even the mighty Team Sports Generation Baby Boomers. We grew up with adoring, doting parents during a Millennials are the team sports generation. Since early childhood, technological revolution – what a combination! we have always been on a team and are accustomed to collaborating on projects. We feel most comfortable working in small groups Millennials can be tough to define because there are 80 million of to accomplish tasks, and that will carry over into the corporate us and we were all raised to think we are special and unique. To our world. Growing up, we always had a coach looking over our frustration, the same generation who taught us the sky is the limit shoulder telling us, “you’re doing great, keep it up!” and we don’t and to set our goals high now labels us unrealistic, entitled and expect that to change once we trade our backpacks for briefcases. demanding. Innovative companies have realized Millennials crave mentoring Regardless of your opinions on this generation, one fact is and coaching from more tenured employees – many have created undeniably clear: Millennials will soon be the overwhelming intergenerational relationships to help Millennials see potential majority in the workplace – 75 percent by 2025. In the past, growth and development opportunities. Millennials, in turn, can management would wring their hands trying to get Millennials help older employees improve the way they utilize technology and to assimilate to corporate culture. Today, successful managers social networks to become more productive. are reinventing their culture to cater to the next generation of employees. Managers who understand what Millennials want and Social Conscience & Opportunities to Give Back expect from their employer will be best positioned to attract and Millennials are the most connected generation in history and grew retain talent. So how are Millennials influencing today’s workplace? up with the internet. This gave them an unparalleled view of the world around them and instilled a strong sense of social conscience Flexible Work-Life Balance and sustainability. They are acutely aware of their employer’s impact My grandfather was a grocer and his store was his identity. His on society and take this into account when deciding where to work. work defined him and he, like many of his generation, lived to Many companies have increased support for employee’s favorite work, usually arriving first and going home last. So where older causes, whether through release time to volunteering or with generations found their identity through their work, Millennials matching funds for contributions. Millennials will respond strongly largely define ourselves by the life we lead outside the office. to opportunities to use their professional skills to make a difference While Millennials are motivated by compensation, we also desire to a worthy cause. the freedom and flexibility to enjoy our life away from work. Millennials will soon dominate the workforce. We are the most Millennials take pride in their careers, but live for their family, educated, most connected and most diverse generation and soon we friends and lifestyle their occupation affords them. will be in charge. Millennials rejoice, our time is now! BV Millennials favor results-only work environments which hold Steve shares this information with corporate offices around employees accountable for results, not the particular hours they the state. Contact him at [email protected] for more keep at the office. Millennials are so connected that many see less information. importance in being the first in the office in the morning because

The WMC Foundation is dedicated to building a better future for Wisconsin by providing business and economics education, workforce development initiatives, local chambers of commerce support, safety training programs and business best practices.

17 Thanks to these Foundation Sponsors for your support throughout 2015 Wisconsin Business Voice SAFETY EXCELLENCE

Janie Ritter Director of Wisconsin Safety Council

Technology, Safety Features and OSHA Everyone Needs to Get on the Same Page

here are numerous reasons why manufacturing companies within the U.S. Department of Labor, OSHA has the responsibility invest in upgrading their equipment - from increasing output to regulate private workplace safety by inspecting workplaces, toT decreasing operating costs, or increasing the safety of employees issuing citations and penalties for violations, and requires employers to introducing state-of-the-art technology into its processes. to take corrective action on those violations. U.S. employers have Technology and equipment design is advancing at an ever- a responsibility to provide a safe workplace for their employees. increasing rate, and these advancements have changed the face of However, with any government entity change is not immediate, it manufacturing to what we see today in advanced manufacturing takes time. Regulations that were drafted and adopted in 1970 have settings in Wisconsin, the U.S., and all around the globe. New, been slowly adapted along the way with the changes in workplace innovative ways of processing and handling products are introduced settings and with the changes in technology. More and more, work every year, allowing operations to run smoother, faster, more that had been performed using manual labor is now performed by efficiently and most importantly, safer for employees. What is also robotics and computer-generated processes. new is the architects of these state-of-the-art machines are now It is extremely important for companies to be proactive when incorporating safety features directly into the engineering of their purchasing equipment used in a manufacturing setting. Here are a equipment design. As with other products, these technologically few suggestions: advanced pieces of equipment may be manufactured in other areas of the world like Europe and Asia which are subject to their own • Include your safety director, engineers and others in the country’s set of safety procedures, guidelines and processes. equipment purchasing process to ensure U.S. OSHA requirements are considered and met. While U.S. manufacturers often look to purchase new equipment • Invite your local area OSHA office representative to review your from U.S. suppliers, oftentimes companies acquire their machinery potential equipment purchase specs and request comments and from a foreign source. It would seem logical that when a piece certification that the new piece of equipment meets OSHA of equipment is purchased and shipped to another country, standards. the product’s safety and operations certification falls on the manufacturer to ensure compliance with the destination country. • Choose a supplier who is well versed in U.S. OSHA That may not be the case. Investing in a new piece of equipment requirements to further ensure compliance with required often comes with a price tag ranging in the hundreds of thousands regulations. of dollars to several million, or more. You don’t want to find out • Consider including a clause in your purchase order that the after-the-fact that your quarter of a million dollar new piece of manufacturer certifies the product is compliant with OSHA equipment doesn’t meet OSHA safety standards, resulting in lost regulations. production time, increased operating costs, inefficiencies or OSHA The world and technology are ever-changing. Working with citations. your local OSHA office is a great place to start to ensure you are meeting all the necessary safety requirements and keeping your With the Occupational Safety and Health Act of 1970, Congress most valuable asset – your employees – safe. After all, the ultimate created the Occupational Safety and Health Administration goal is to have all employees return home safely to their families (OSHA) to assure safe and healthful working conditions for every day. BV working men and women by setting and enforcing standards and by providing training, outreach, education and assistance. Housed Follow WSC on Twitter @WISafetyCouncil

18 Chapter of

| Safety Training April - July 2015 The Wisconsin Safety Council, a division of WMC, is Wisconsin's leading provider of safety training and programming. WSC offers training throughout the year at locations across the state.

www.wisafetycouncil.org Register Today www.wisafetycouncil.org MILWAUKEE AREA SAFETY TRAINING

May 20 Supervisor Development: Safety & Health Fundamentals

June 17 Job Safety Analysis ( JSA)

MADISON AREA SAFETY TRAINING

May 7 First Aid/CPR/AED Recertification

May 8 OSHA Construction Breakfast “Hiring a Crane”

May 18-21 Safety Training Methods (STM)

June 8 Handling an OSHA Inspection

June 14 Hazard Communication, Train-the-Trainer

July 21 Safety Inspections

WISCONSIN DELLS AREA SAFETY TRAINING

April 20-22 73rd Annual Safety & Health Conference and Expo More than 50 educational sessions aimed at safety and health professionals

April 20 Coaching the Lift Truck Operator, Train-the-Trainer Effective Team Safety Ergonomics: Managing for Results Incident Investigation: Root Cause Analysis 2015 NFPA 70-E Update Developing an Effective Behavior-Based Safety Process 8-Hour Comprehensive Course on Rigging in the Workplace Interpretation of Industrial Hygiene Sampling

April 20-21 OSHA 10-Hour Voluntary Compliance Course for General Industry

FOX VALLEY/GREEN BAY AREA SAFETY TRAINING

June 11 Incident Investigation: A Root Cause Analysis DEFENDING FREEDOM

Military vehicle manufactured by Oshkosh Defense. DEFENDING FREEDOM Wisconsin Style

ByDefense Mark Crawford Contractors in Wisconsin

t’s often been said the best offense Manufacturing, a metal fabricator in is a strong defense – this is true for Waukesha, recently secured an $11-million IWisconsin, where a strong defense- contract with NASA to build special test contracting sector is essential for a robust, equipment for space launch systems. competitive state economy that scores big wins on the economic playing field. And, Diverse Defense Sectors when the defense falters (for example, $2 According to the Wisconsin Procurement billion in funding cuts to truck manufacturer Institute, Wisconsin has about 2,500 discrete Oshkosh Corporation by the Department defense suppliers – original equipment of Defense over the last five years according manufacturers (OEMs) and Tier-1 to the Wisconsin Procurement Institute), suppliers in transportation equipment (for the negative impacts to supply chains example, Oshkosh Corporation), maritime reverberate throughout Wisconsin. transportation (Marinette Marine), controls and automation (Rockwell Automation Defense spending, in many cases, parallels and Johnson Controls), what is happening on the world stage. With safety equipment the end of the wars in Iraq and Afghanistan, (Grainger), propulsion the Department of Defense has less need “A major concern beyond and power solutions for military vehicles, replacement parts (DRS Technologies), and Wisconsin’s borders is the and other services. “This, however, can many others including change quickly if there are foreign policy impact of sequestration at foundries, fabricated developments involving ISIS or other hot metal, component the federal level.” spots around the globe,” says Tom Still, manufacturing, defense president of the Wisconsin Technology software and medical. Council. In Fiscal Year 2013, defense spending Despite the downturn, there are still constituted 2.3 percent of Wisconsin’s plenty of bright spots within Wisconsin’s GDP – $6.5 billion per year – about 1.4 defense-contracting industry. For percent of total defense spending in the example, Marinette Marine Corporation country. Top earners were: is a primary subcontractor to Lockheed Martin on its littoral combat ship project • Oshkosh Corporation – $5.1 billion with the U.S. Navy, which has brought • National Presto Industries – $126.3 other manufacturing opportunities to million Wisconsin. Snap-On Inc. in Kenosha • General Electric – $71.1 million received a $37.7-million contract in 2014 • Wisconsin Physicians Service Insurance to provide aviation tool kits for the U.S. Corporation – $33.9 million military. A number of other companies are • Schutt Industries – $25.2 million well-positioned to take advantage of the shift in Department of Defense spending • Snap-On – $22.1 million away from heavy equipment and toward • TRC Global Solutions – $21.1 million homeland security initiatives, cybersecurity • WHR Group – $19.4 million and insurance and medical services for • ORC Industries – $18.6 million military personnel. Wisconsin companies • Tower Industries – $18.3 million are also starting to win more high-level, federal work in defense-related sectors such as aerospace – for example, Weldall 21 Wisconsin Business Voice About 93 percent of defense contracts in Wisconsin are for pyrotechnics and other critical defense components. This is equipment and supplies – the remaining seven percent invests in made possible because neutrons, unlike x-rays, are able to deeply research and development, construction, technology and a variety penetrate high-density materials such as shell casings and other of business services. Yet this small slice of the defense business metallic objects and interact strongly with lower-density explosive is rapidly growing, creating new opportunities for Wisconsin materials such as carbon or hydrogen, making inspection a much companies to expand into these expanding sectors. These safer operation. include electronics, medical equipment and supplies, software The Department of Defense funds have been extremely critical development, network engineering, water technology, health for the growth of PNL. “We have been able to leverage the Army care and other consulting services. For example, Madison-based grants to develop our core technology and product line,” says WPS Corporation (insurance, pensions) and United Health Radel. “The $3-million contract is allowing us to build our first Group/Logistics Health (healthcare) received a combined total commercial neutron radiography system.” of about $475 million in federal funding in 2014, a large portion of which goes toward Department of Veterans Affairs programs. The device will be delivered to the U.S. Army, where it will be Other diverse defense contractors include Goodwill Industries used to improve the safety of its ammunition. Not only have the (food services), Federal Prison Industries (clothing), Johnsonville military contracts helped pay for technology and manufacturing Sausage (meat), Datex-Ohmeda (medical and dental supplies), Lunda Construction (concrete), Metaltek (copper foundries) and the Industries for the Blind (carbon paper and inked ribbon manufacturing).

Not Everyone Can Play Defense Winning a defense contract isn’t easy. The Department of Defense expects full compliance with strict eligibility and reporting requirements; successful bidders must also have a high degree of patience and good communication skills. Although the application process can seem daunting, winning a defense contract makes a huge difference in the growth of a company. Phoenix Nuclear Laboratories in Monona, for example, has received a total of $5.5 million from the Department of Defense (including a $3-million Inside the cockpit of a Gulfstream jet. The company outfits cabins, contract in 2014) to build an advanced neutron radiography unit. paints the exteriors and installs avionics equipment upgrades in part “Winning a defense contract is difficult, particularly in recent years at the Appleton completion center. as federal spending has decreased,” says Ross Radel, president capability development, the funding has helped the company raise of Phoenix Nuclear Laboratories (PNL). “Our awards were private equity for expanding the business. “The military funding mostly granted through the Small Business Innovation Research has helped PNL grow from 10 to 30 people in the past three (SBIR) program, which specifically seeks innovative ideas from years,” says Radel. “It has also supported the local economy because small businesses. Without this program, it would be much more we purchase a large percentage of the hardware for our devices challenging for small businesses like PNL to compete for defense from Wisconsin companies.” funding. Even so, the application process is competitive and requires significant amounts of work from the applicant.” Moving Forward Similar to x-ray imaging, neutron radiography is a nondestructive Cuts in federal defense spending have reduced the number of inspection technique. The U.S. Army wants to use PNL’s neutron defense contracts in Wisconsin. The State of Wisconsin and imaging system for the nondestructive inspection of munitions, the Wisconsin Economic Development Corporation (WEDC) are working hard to mitigate the impact of these cuts, as well as expand future support for the defense industry in the state. The East Central Wisconsin Regional Planning Commission applied for, and was awarded, a $1.9-million Defense Industry Adjustment Grant from the Department of Defense. Partners in administering the grant include the City of Oshkosh and the University of Wisconsin-Oshkosh. “The overall project goal is to assist workers and manufacturers affected by the Oshkosh Corporation layoffs, while implementing a strategy to diversify the state’s defense industry and build on its comparative advantages,” says Lee Swindall, vice president of business and industry development for WEDC. The littoral combat ship Pre-Commissioning Unit (PCU) USS Milwaukee In addition, WEDC created a Special Projects Loan Fund to (LCS 5) is prepared for its christening ceremony Dec. 18, 2011 at the provide loans for projects that might not otherwise qualify for Marinette Marine Corporation shipyard. (U.S. Navy photo by Joe Mancini traditional financing. This fund was created specifically in response ) courtesy of Marinette Marine Corporation/Released to the cutbacks at Oshkosh Corporation. Although any company 22 can apply for the loans, the program was created with Oshkosh Corporation suppliers – especially parts suppliers, metal fabricators and machine shops – in mind. Loan amounts range from $50,000 to $250,000 and require a 50 percent match by the recipient. In 2014, Wisconsin ranked 32nd among all states for federal procurement dollars (which includes defense contracts). Even worse, Wisconsin receives only 1.4 percent of the total defense spending awarded to contractors every year in the U.S. The good news is Wisconsin has the research and development and manufacturing talent to win more defense contracts, especially in emerging sectors. The long-time success of companies like Oshkosh Corporation and Marinette Marine has prepared their Sailors man the rails of USS Freedom (LCS 1) during a commissioning supply chains to be competitive for defense and federal work. “We ceremony at Veterans Park in Milwaukee. Wisconsin's Marinette Marine manufactured the Freedom. (U.S. Navy official photo by have an extremely strong base of manufacturers that have served Michael F Miller/released) as subcontractors to major prime contractors,” says John Rogers, board chair of the Wisconsin Procurement Institute and CEO of Capstone National Partners, a public-affairs firm that is working coming out of the UW will help create new growth opportunities with WEDC and UW-Extension to complete a Wisconsin for Wisconsin companies like Phoenix Nuclear Labs,” he says. military bases study that assesses their economic impacts. “These “Moreover, additional support from the WEDC, Madison in-state subcontractors are highly qualified and have acquired the Development Corporation, and other organizations will help small skill sets needed to go after other significant federal work.” businesses grow and compete for increased defense contracts.” Plans are underway at the Wisconsin Procurement Institute to Finally, a major concern beyond Wisconsin’s borders is the impact craft a robust strategy to increase defense spending in general of sequestration at the federal level. In terms of Department of across the state. This will include extra attention on the emerging Defense spending, being able to avert full sequestration cuts in services sector “if we want to compete for and win more federal Fiscal Years 2014 and 2015 gave the Pentagon what it needed dollars,” says Swindall. “Key areas include energy and power most to manage its finances – certainty, time and flexibility, notes control, water technology and cybersecurity. Cybersecurity is Rogers. “Fiscal Year 2016 is another story,” he adds. “Full cuts one of the fastest-growing segments of Department of Defense are supposed to be in place. In addition to the president’s budget, spending. With our University of Wisconsin strengths in computer which discarded the sequestration cuts, we have an intra-party war engineering, network engineering and software development, between Republican fiscal conservatives and the defense hawks. Of Wisconsin is ideally situated to compete in this field.” course, all this will impact Department of Defense manufacturing dollars in Wisconsin – let’s just say that the final chapter of the Radel adds that a strong University of Wisconsin system will help defense budget has yet to be written.” BV keep the Wisconsin defense industry strong. “The technologies and, more importantly, the exceptional engineers and scientists Crawford is a Madison-based freelance writer.

Wisconsin’s Role as “The Arsenal of Democracy” ore than 332,000 Wisconsinites served in the military during lockers, trucks, tank parts, World War II. But far more people than that served their country howitzers, cots, mattresses Mby providing the U.S. and its allies with all manner of war materiel. and propellers. A review of data from the old War Production Board, provided by the Wisconsin also boasted Library of Congress, shows the extent by which Wisconsin industry, the largest ammunition agriculture and forestry helped America become “the arsenal of plant in the world. At its Democracy.” peak the Badger Ordnance Works outside of Baraboo Wisconsin factories churned out impressive quantities of very diverse employed nearly 10,000 goods used to prosecute the war in both the European and Pacific

people. It continued WHS-64627 Society, Historical Wisconsin theaters. Shipbuilders in Manitowoc, Milwaukee, Superior and Sturgeon operation until the end of Bay built submarines, minesweepers, Liberty Ships, tugs and barges, USS "Peto”, a Gato-class submarine, the Vietnam War and was while Fairbanks Morse in Beloit assembled the engines to power them. manufactured by the Manitowoc considered a likely target for Shipbuilding Company and launched Textile manufacturers made uniforms, overcoats, parkas, jackets, a nuclear attack if war had April 30, 1942. raincoats, ponchos, undershirts, socks and caps. At least three shoe broken out between the U.S. manufacturers, including Allen-Edmonds, made shoes and rubber boots. and the old Soviet Union. Snap-on Tools produced wrenches, Ray-O-Vac built batteries, A.O. The need to feed military personell and civilians around the world was Smith made bomb components while Briggs & Stratton made the fuses. a boone for farmers. During the war, Wisconsin became the largest Other companies made, among many other things, canteens, foot producer of vegetables for canning. BV

23 Wisconsin Business Voice Wisconsin Exports Hit Record High in 2014 ed by an increase in exports of goods in agricultural, water technology and biotechnology, Wisconsin exports exceeded $23.4 billion in 2014 – a new state record. That figure represents a 1.4 percent increase Lover 2013 and an 18.3 percent jump from 2010. Wisconsin’s agricultural exports rose by 13.6 percent in 2014 to a record $3.7 billion. The state’s increase was nearly three times greater than the growth rate for total U.S. agriculture exports in 2014 and marks the fifth straight year Wisconsin’s numbers have risen. Manufacturing exports – which make up 84 percent of the state’s total exports – held steady in 2014 at $19.7 billion. Industrial machinery continues to be Wisconsin’s top export product category at $6.37 billion, accounting for 27 percent of all state exports. The second-largest product category is medical and scientific instruments, which accounts for 9 percent of all state exports at $2.17 billion. Wisconsin’s export growth in 2014 was spurred by an increase in shipments to Canada and Mexico, Wisconsin’s top two export destinations. Exports to Mexico jumped by 12.7 percent to $2.84 billion, primarily because of an increase in the export of vehicle parts, plastics and dairy products. Exports to Canada – the state’s number one export destination – were up 5.5 percent to $7.94 billion, due primarily to an increase in organic chemicals, ethanol, fur skins and beverage exports. Other exporting highlights from 2014 include: • Wisconsin ranked 19th in the U.S. in total exports – behind Wisconsin Exporting Fast Facts Massachusetts and ahead of Minnesota. The state ranked 13th Wisconsin companies exported more than in agricultural exports. • Wisconsin leads the nation in $23.4 BILLION in goods in 2014. exports of more than 40 different a nEW rEcorD! products including cranberries, whey, ginseng roots, outboard engines, refrigeration equipment, top DEstination For Wisconsin Exports 2014 firefighting vehicles, fire extinguishers and bicycles. • Wisconsin businesses exported to 206 different countries. • Exports to European Union 33.9% 12.1% 6.7% 3.9% 3.6% countries increased by 8.1 canada mexico china JaPan uniTed percent, due in part to increases in kingdom exports of automatic data process machines and tractors, trucks and Wisconsin’s top ExportED proDucts 2014 other vehicles. • The state saw an 8.6 percent increase in the exports of plastics, which surpassed the $1 billion mark in 2014. Canada is the 27.2% 9.3% 9.1% 7.9% 4.4% destination of 42 percent of the indusTRial medical/ elecTRical Vehicles PlasTics state’s plastic exports. machineRy scienTific machineRy and PaRTs • Aircraft and spacecraft exports insTRumenTs rose by 32 percent to $404.9 million. The United Kingdom proDucts With signiFicant groWth From 2013 to 2014 was the leading destination of products in that category. • The state continues to experience 169% 53% 32% 18% 9% a rise in exports of fur skins. The oRganic Raw fuR aiRcRafT and meTal Tools PlasTics $269 million in fur skin exports is chemicals skins sPacecRafT and cuTleRy up 53 percent from 2013 and 123 percent from 2012. BV Source: U.S. Census Bureau data as reported by Global Trade Information Services

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® Photo: Schneider, Green Bay, WI. In Wisconsin® is a registered trademark of Wisconsin Economic Development Corporation.

5357-07_GeneralPositivePolicy 8.5x11_vF.indd 1 3/10/15 1:54 PM The School District of Beloit’s Career Technical Education Program: A Successful Link from Education to Business By Steve McNeal

n 2011 Diane Hendricks, owner of the Hendricks Holding new equipment and Company and chairperson of ABC Supply Co., Inc., flew layouts they would Ia number of education and business leaders from the Greater use in real industry Beloit community (including WMC's Kurt Bauer, a Beloit settings to create native) to Lehigh Career and Technical Institute in Schnecksville, effective workflow. This Pennsylvania. Here leaders toured the school and examined their included changing old vast program offerings. What we found was an incredible all-in- shop environments to one campus where students acquire the skills and knowledge to new, cleaner and more be career-ready after high school. As one of the educators lucky appealing workspaces. enough to participate in the trip, I knew then we had an obligation This transformation to look differently at our offerings and programs for the sake of our would only be effective students. if we changed how we We committed to transforming Beloit Memorial High School hired for the positions into a center that would serve our community and students with in each of the CTE a career emphasis. Although we knew we could not be a county areas. We needed to center like Lehigh, we were very aware most schools would or find skilled teachers could not make the monetary commitment for such an endeavor with a specialty, industry and our investment would draw students to us from other districts. certification or a desire Our journey began with the premise that we as educators needed to to dive deeply into get in tune with what our business and industry leaders told us they a concentration of one or two areas. This required recruitment, needed. We created advisory committees for each of our Career and paying the teacher accordingly and contracts encouraging the Technical Education (CTE) areas from Greater Beloit business teacher to stay for extended amounts of time. Once the teachers partners – the owners and operators of machine shops, welding were employed, the expectation was that we would get him or companies, construction and informational technology companies her involved in externship programs to give real life, on-the-job along with other areas driving the decisions of what we needed to experience with local manufacturers or businesses with whom teach. They also advised what we needed to stop teaching, what they would be working. Our local businesses were great about equipment we would need as well as what equipment we should get opening their doors and employing our staff during summer. It rid of, and finally what specific skills our students would need in helped expand the teachers’ skills and strengthen their relationships order to work for them. They designed shop areas to accommodate with the business leaders. The unforeseen benefit was the teachers witnessed other workers on site and assessed the soft skills, or in some cases lack thereof, which had to be introduced into the course work at the schools. After year two we hired a full-time Career Technical Education administrator to coordinate all the programs. We now had a person to help continue growing our business partnerships and connections with post-secondary schools, oversee the offerings and curriculum and build a network to staff our programs.

Photos accompanying this this column are of Beloit Memorial High School’s state-of-the-art Career and Technical Education department, including CNCs, welding and lathe. 26 One area we have expanded is transcribing our classes and successfully articulating with many colleges and technical schools in the area, rather than just working with our own local technical college. Many students earn dual credit during their junior and senior years in high school allowing them to graduate in some cases already half way through the program at the technical college. Our students are now working in internship programs at different work sites. With solid relationships at local businesses, we are increasing the number of students working on sites with the hope they ultimately will be hired by the business. We feel this is a win- win situation for both parties. So, how has it worked? The number of business partnerships has risen to over 55 and more impressively, the number of students in the Career Technical Education areas have in most areas more than doubled. This year we hired a full-time career advocate to work with students and young adults in career exploration and guidance. Here are some examples of the increased student enrollment: This position was funded by a local grant from a business that 2013-15 2014-15 has tremendous interest in equipping our young people with School Year School Year knowledge related to career choice. The hope now is to partner Autos 90 students 244 students with the school district to offer programming for young adults and unemployed adults who are without employment or direction. In Project Lead the Way 51 64 an area with so many needs by local manufacturers, we know we Construction 33 168 can do more to connect possible employees to the needs of our Cabinetry 40 84 local businesses. BV Instructional Technology 61 101 Steve McNeal recently retired as Superintendent of Welding 111 175 Schools for the Beloit School District. He is Vice President of Educational Services for Corporate Contractors, Inc.

27 Wisconsin Business Voice Who is Mikey the Manufacturer? By Ben Bemis

iving in Wisconsin, odds are we are less than two degrees of their favorite toy. I envisioned a children’s book that would tell the separation from the vital manufacturing industry. In my case, story of manufacturing through the eyes of a child. Lmy father has worked in the manufacturing industry for more than When I first started laying the ground work for the story, I had 35 years. Yet, as a community, we continue to have issues building no idea the level of interest it would spark. Since that point and a qualified base of skilled workers to fill the roles required for basic throughout the creation process, the idea evolved to something manufacturing. far beyond what I had originally imagined. While children may Three years ago I was sitting in a manufacturing conference and have to stretch on vocabulary, like the word ‘manufacturing’, they the presenter made a statement about bringing awareness to high fully grasp the concept of making things. And in its simplest school students regarding alternatives to college. These alternatives form, that is the manufacturing process. As I started describing a included technical colleges, apprenticeships and building trade basic fabrication process to children they, as expected, would ask knowledge. While I agree the idea of manufacturing needed to be questions. Of course their questions were directly related to their brought to light earlier in life, I was convinced high school was too understanding of the world. For example (giving you a little sneak late. Moreover this would continue to lead to missed opportunities. peek of the book) when describing a press-break, kids would often This all happened right around the same time as the birth picture a “superhero-like strongman bending metal.” Additionally of our first child, Warren. I began to contemplate when I was describing robots, nearly all the Warren’s future and how best to mold him to “While children may have children pictured humanoid robots. Finally when discussing a heat be a well-rounded person. I started to look to stretch on vocabulary, like for books, specifically children’s books that treat process, the temperatures would help explain Grandpa’s job and the word ‘manufacturing’, they fully didn’t matter to the kids – I passion towards manufacturing. What did I grasp the concept of making things. needed to clarify the ‘space suits’! find? Nothing. And in its simplest form, that is the So here we have a process that on I realized that in our society and educational a high level would be difficult for system, we have idealized certain professions manufacturing process.” children to understand, yet there are and have completely ignored others. When a child is superheroes bending metal, with robots asked, “What would you like to be when you grow up?” the answer and space suits, and we haven’t even begun to is canned. I asked many children that question and nearly all chose discuss lasers… from the ever popular… a doctor, a dentist, a teacher, or of course Sparking interest in a child is not difficult, but it is on us to build Spiderman. The reason for their responses is simple, it is the limit interest and understanding through their eyes. My hope is that of that which they have been exposed. this book is used as a tool to bring families closer together, spark So I began to think creativity and wonder and finally, help bring us the next generation of a basic metal of manufacturers. BW fabrication process Ben Bemis is a commercial banker by day and through the eyes author of Mikey the Manufacturer by night. He can of a child. After be reached at [email protected] many interviews Mikey the Manufacturer is available for purchase with machinists, online through the Little Creek Press: http://www. welders, engineers littlecreekpress.com/kids_youngadults.php and owners of manufacturing facilities, I started to see excitement in their eyes, similar to the excitement of a child describing

28

OZONE REGULATION

Eric Bott WMC Director of Environmental & Energy Policy

EPA Proposes Most Expensive Air Rule Watch Eric explain more about his Ever column: www.wmc.org/bv (And We’re Not Even Talking About Global Warming Regulations)

ost people associate ozone with Park could not comply with the Obama • $10 billion in total compliance costs a layer of the stratosphere that Administration’s rule. In Wisconsin, one • $580 drop in average household Mhelps protect the Earth from ultraviolet could draw a line on a map from Marinette consumption per year radiation. When it comes to ozone to Prairie du Chien – everything to the • $1 billion more for residents to own/ regulation, however, ground level ozone South and East of that line would likely operate their vehicles statewide (2017 is the main target of the Environmental go into nonattainment. Some Western to 2040) Protection Agency (EPA). counties would also be pulled into the Minneapolis nonattainment area. EPA’s actions will have far reaching Ground level ozone forms naturally and as consequences on the ability of our a result of chemical reactions taking place Manufacturers and utilities hoping to communities to attract commercial and when certain emissions from automobiles, locate or expand in nonattainment areas industrial investment and will create factories and power plants, namely will face Nonattainment New Source measureable burdens on Wisconsin volatile organic compounds (VOCs) and Review (NSR), meaning workers. Environmental nitrogen oxides (NOx), are exposed to they will have to “Most of the country compliance sunlight. Ozone is generally a pollutant of offset new emissions will dominate concern in and around urban areas during with reductions (approximately 90 percent of capital budgets, summer months. In Wisconsin, counties from other sources monitored counties) would be leaving little for along Lake Michigan’s shoreline have in the area. These investment in new historically struggled with ozone, in large offsets carry steep put into nonattainment.” workers, production part due to emissions from neighboring ratios that can climb as equipment or higher Illinois and Indiana. However, pollution high as two-to-one in some situations. salaries. Local governments will feel the levels have declined dramatically in recent Nonattainment NSR has proven so pinch too. EPA’s actions will limit the years and today only Sheboygan and the burdensome that ozone nonattainment ability of communities to expand their eastern portions of Kenosha County are areas are often referred to as economic no- tax base, putting increased pressure on designated as “nonattainment,” or polluted, go zones for manufacturing. In counties residential property taxpayers as well as by EPA. determined to be in moderate or severe public school and local budgets. nonattainment, existing manufacturers and That could all change if EPA is successful Is it worth it? Ozone-forming emissions in finalizing its current proposal. On the utilities will face costly new compliance mandates, driving up the cost of electricity have plummeted more than 33 percent eve of this past Thanksgiving, EPA quietly since 1980 and will fall further as states announced its intention to dramatically and making Wisconsin companies less competitive. continue to implement EPA’s current lower the existing National Ambient Air standard, a standard I may add that was Quality Standard (NAAQS) for ozone The National Association of only promulgated a few years ago and from 75 parts per billion (ppb) to between Manufacturers recently quantified these that is still being implemented. We all value 65 and 70 ppb. That’s a meaningful change. impacts to Wisconsin. At a standard of 65 clean air but when EPA sets a standard so At 65 ppb, most of the country ppb, Wisconsin could face: low that even Yellowstone and portions of (approximately 90 percent of monitored • $30 billion gross state product loss from our Northwoods can’t comply, we have to counties) would be put into nonattainment. 2017 to 2040 question their science and their sense. BV Even areas far removed from smoke stacks • 24,421 lost jobs or job equivalents per Follow Eric on Twitter @BottWMC and traffic jams like Yellowstone National year

30 Company News Kapco Inc.’s Non-Profit Organization Surprises Kids UnitedHealthcare and Business Health Care Group with Aaron Rodgers Form New Health Benefits Program Late last year, Kapco won the first-ever Wisconsin Business Early this year UnitedHealthcare and the Business Health Care Achievement Award. The award included a $50,000 donation from Group (BHCG) of southeast Wisconsin announced a multi-year the Flowers Family Foundation to a Wisconsin-based non-profit relationship to deliver high-quality, cost-effective health benefits organization of the winner’s choosing. Kapco gifted to gift the to employers in the greater Milwaukee area. UnitedHealthcare money to Hometown Heroes, an organization which honors our will be the exclusive provider of health benefits for the BHCG. fallen Military Heroes by embracing the children they left behind. The UnitedHealthcare offerings will help employees obtain Hometown Heroes recently had Aaron Rodgers, Green Bay care from physicians and facilities that meet or exceed specific, Packers quarterback, surprise a group of kids whose fathers died independent quality of care and cost-efficiency standards. These while serving in the military. The organization also put on a week- types of programs have been proven to improve health care quality long camp in Wisconsin for children who have lost a loved one in and reduce cost trends. Many BHCG member employers require the military to help them through their loss and connect with kids national coverage and this partnership will give their employees who have been through similar experiences. one consistent solution across all of their locations.

U.S. Venture, Inc. Adds U.S. Gain Division Wegner CPAs Welcomes New Partner U.S. Venture, Inc., a leading distributor and marketer of energy, Wegner CPAs recently hired Michael W. Steinl, automotive and lubricant products located in Appleton, has CPA, CGMA as a new partner in their Tax & established a separate corporate division for its Compressed Business Services department. Steinl’s expertise Natural Gas (CNG) business. The new division, called U.S. Gain, and leadership provide specialized guidance to will comprise all operations related to its expanding CNG network further the expansion of Wegner CPAs’ for commercial fleet operators and shippers in North America. The Manufacturing/Supply Chain niche and enhances their Employee Benefit Plan Audit network is marketed under the GAIN Clean Fuel brand which has Steinl 39 sites operational or underway with a target of 100 locations in practice. the next two years.

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WMC elected 10 new board members in January. They are pictured here: 1) Cliff King, Skyward, Inc. 2) Brad DeNoyer, Baker Tilly Virchow Krause 3) Damond Boatwright, SSM Health Care of Wisconsin 4) Michael Wallace, Fort HealthCare 5) Stephen Loehr, Kwik Trip, Inc. 6) John Pfeifer, Mercury Marine 7) Aaron Powell, Flexion, Inc. 8) Susan Turney, Marshfield Clinic Health System, Inc. 9) Jeffrey Bailet, Aurora Health Care; and 10) Jim Leef, ITU AbsorbTech, Inc. 31 Wisconsin Business Voice The Ethanol Blend Wall How a Federal Policy Threatens a Key Wisconsin Industry and the Contents of Your Garage By Eric Bott

ebates about ethanol mandates get heated in a hurry. priority as well but also stresses that high ethanol content fuel Proponents tout economic gains for corn growers, energy blends raise safety concerns for the marine industry. Dindependence and environmental benefits. Critics charge that “We’re concerned about our consumers’ experience and the value there’s an environmental cost to ethanol, that it drives up food they get from their engine,” says Pfeifer. “We design our engines to prices and that shale oil has answered the energy independence last a lifetime and to run safely. When you start burning fuel with question. concentrations of ethanol above 10 percent bad things can happen. For Wisconsin’s small engine and outdoor power equipment Most of these failures are not going to occur at the dock. If they manufacturers, their position on ethanol really comes down to this occur on the water, you potentially have a safety problem.” – product quality and consumer satisfaction. Regardless of possible Todd Teske, Chairman/President and CEO of benefits or detractions of ethanol, industry experts Briggs and Stratton Corporation says more say one thing is clear; high concentrations of “We’re not anti-ethanol. education is needed to help prevent ethanol in gasoline threaten the reliability and mis-fuelings. With an estimated 70 performance of small engines. And that’s bad Our engines are made to run on million Briggs engines installed in news for consumers and business. E10 but we have to ensure that our equipment all across the country, The small engines that power outdoor it’s easy to see why the Wauwatosa- equipment ranging from lawnmowers and customers get the value they pay based manufacturer might be snowmobiles, to chainsaws and generators, good money for.” concerned. are built to a 10 percent ethanol design window. “Small Engines are in the fabric of According to the U.S. Department of Energy, use of Americana,” says Teske. “There are so many people out there, so gasoline blends containing more than 10 percent ethanol, E15 many households, that have equipment powered by small engines. for example, may cause engine part failure, hotter engine and We believe it’s extremely important people understand and use the exhaust temperatures, and erratic operations. Allen Gillette, VP of right fuel for the right equipment. Customers deserve to get the Engineering for Waukesha-based Generac Power Systems, says this value they pay for.” is a major concern for Wisconsin manufacturers. “As ethanol content increases above 10 percent, tests show you Illegal Use of E-15 impact fuel system materials, startability, power outputs and Asked if they thought state other factors,” says Gillette. “This hurts our ability to ensure our and federal regulators were equipment performs to meet customer expectations.” doing an adequate job educating the public about Kris Kiser, President/CEO of the Outdoor Power Equipment the dangers of mis-fueling, Institute (OPEI) says increased ethanol fuel blends absorb a great industry leaders universally deal more airborne water than gasoline. This makes engines more agreed that government difficult to start and more prone to failure, especially if they’re run agencies are falling short. intermittently or seasonally – like snow throwers or boat motors They stressed they do here in Wisconsin their best to educate their “As you add ethanol, you increase the likelihood that products with customers but it’s difficult a limited, recreational or seasonal use will be negatively impacted,” for industry to educate the says Kiser. “The longer the product sits, the more damage ethanol public on a standard that’s can cause.” constantly evolving. Manufacturers like Dan Ariens, Chairman/CEO of Brillion-based The first partial waiver for Ariens Company, worry consumers may unknowingly damage a gasoline with a blend of product through mis-fueling and incorrectly associate resulting 15 percent ethanol, known problems with that product’s maker. as E15, was introduced by “The biggest challenge for us is the impact on customer experience,” EPA in 2010 for engines in says Ariens. “We’re a family business. Our name is on our product model year 2007 and newer and that heightens our awareness of customer perception. If a light duty motor vehicles product is damaged because of mis-fueling, that’s a big issue for us.” and was amended in 2011 to include 2001 and newer John Pfeifer, President of Mercury Marine in Fond du Lac, says light duty motor vehicles. providing an excellent consumer experience is Mercury’s top

32 So, technically, it is currently illegal to use E15 in small engines of a bombshell study published last December in the Proceedings for outdoor power equipment, recreational vehicles, motorcycles of the National Academy of Sciences, which casts doubt on and marine products. The majority of consumers are unaware of ethanol’s greenness. this, driving confusion at the pump and mis-fueling. This is why “When we perform a comprehensive life cycle assessment of manufacturers are focusing on educating consumers. the various inputs and outputs of different fuel options, we find The Blend Wall corn-based ethanol is roughly twice as damaging as gasoline from an air quality and public health standpoint,” says Hill. “As fuels The Renewable Fuel Standard (RFS), amended by Congress in they’re comparable but the corn-ethanol production process is more 2007 is a federal program mandating ever-escalating amounts of damaging.” renewable fuels to be blended with gasoline. At the time, Congress assumed gasoline consumption would continue to increase while Not content to wait for Congress to reform the RFS, Wisconsin domestic petroleum production would decline. In reality the exact manufacturers like Mercury Marine are working with the opposite has happened, leaving petroleum refiners forced to mix National Marine Manufacturers Association (NMMA) to develop blends of gasoline that cars and small engines can’t use. This is alternative biofuels that may be more compatible with small called the ethanol blend wall. engines. Other manufacturers such as Sturtevant-based BRP- Evinrude are also working with NMMA on these initiatives. Until “The blend wall is an immovable object,” says Ariens. “As gasoline these products come online, however, industry leaders warn that consumption declines and RFS mandates increase the only way to consumers should continue to pay close attention to the fuels they hit the blend mandate is to put a higher percentage of ethanol in put into their engines. each tank. The Standard needs to be reformed.” “We’re not anti-ethanol,” says Teske. “Our engines are made to run Kiser says the uncertainty created by the Environmental Protection on E10 but we have to ensure that our customers get the value they Agency’s mishandling of the RFS only makes matters worse. pay good money for. That’s the only motivation we have.” BV EPA is required by law to finalize each year’s RFS mandate by November 30 of the preceding year but it has yet to finalize rules for either 2014 or 2015. “The underlying assumptions of the RFS were flawed and now the federal government has proven itself incapable of meeting the statutory obligations contained in the RFS,” says Kiser. “The effected industries on both sides have no direction. An engineer To learn more about the can’t design a product based on what the EPA might do.” impacts of ethanol blends on The Greenness of Ethanol small engines, visit Industry experts contend the rationale for the RFS may no longer www.lookbeforeyoupump.com exist and America is becoming energy independent through shale oil. The environmental benefits of ethanol, once touted as a justification for the RFS, are now suspect. Dr. Jason Hill of the University of Minnesota is one of the authors

33 Wisconsin Business Voice TAX REFORM

Jason Culotta WMC Director of Tax & Transportation Policy

Budget Presents Opportunity for Tax Reform he state budget introduced by Gov. Walker will continue the 3 percent. This difference in rates (12 percent on taxpayers vs. 3 property tax freeze but still more can be done to ease the percent on DOR) is the largest disparity of any state. Up until two taxT burden on businesses. With limited funds to cut taxes, the years ago, the refund/deposit rate was 9 percent. Equalizing the Legislature can adopt administrative reforms that will improve our rates by reducing the 12 percent rate paid by taxpayers would be tax climate without significantly impacting revenue. preferable but also costly to implement. Restoring the 9 percent refunds rate would at least remove Wisconsin from ranking worst Economic Substance among its peers. In addition to the Wisconsin Department of Revenue’s (DOR) existing power to disregard what it considers “sham” transactions, Statistical Sampling in 2009 – at the request of the Doyle Administration – DOR Many states use statistical sampling – similar to polling in election was given additional authority to reject transactions it believes campaigns – to accurately conduct sales and use tax audits. lack “economic substance.” Given the subjective nature of Unfortunately, DOR does not use statistical sampling; rather it these determinations, businesses are in the dark regarding requires huge sample sizes from taxpayers which result in long what transactions DOR will accept and what it will reject. The audits without better accuracy. DOR should be directed to study Legislature should conform Wisconsin law with federal law, place other state statistical methods that could save resources for both the burden of proof on DOR when asserting economic substance taxpayers and DOR. and create an “angel list” of transactions DOR could not second- guess, such as decisions about where and how to incorporate. Third Party Audits DOR contracts with third parties to conduct audits or purchase Production of Documents confidential taxpayer information. Among these third parties is Another 2009 enactment empowers DOR the Multi-State Tax Commission (MTC), which sells to deny deductions, credits, and “Department of taxpayer information to, and conducts joint audits exemptions and impose significant with, DOR. Businesses frequently complain penalties (e.g. greater of $500 or Revenue does not use statistical third party auditors do a poor job, are not 25 percent of DOR’s assessment) sampling; rather it requires huge familiar with Wisconsin law and are not as if the taxpayer fails to provide accurate as DOR auditors. Unlike DOR staff, documents requested by DOR – sample sizes from taxpayers which third parties are not held to confidentiality even if the documents don’t exist! result in long audits without standards for taxpayer information and can be This power is above and beyond paid on a contingency fee basis. The Legislature DOR’s existing authority to subpoena better accuracy.” should prohibit DOR from contracting with third and examine records and compel witnesses party auditors (particularly for unclaimed property to testify before DOR. No other state empowers its audits), except for MTC audits, and switch the burden of proof revenue agency to impose such penalties. This power has singled from the taxpayer to DOR for MTC audits. Wisconsin out for criticism at the national level and should be These reforms and others – like improving the statutes governing repealed. unclaimed property and updating the base period in which to Refunds Interest Rate claim research and development credits – would cost the state little in the way of lost revenue. Adopting these changes would, however, When DOR determines a taxpayer owes additional tax, a 12 significantly improve the tax regulatory climate for Wisconsin percent interest rate applies. If the taxpayer fails to pay the businesses. BV assessment on time, the interest rate jumps to 18 percent. However, when the state owes money to a taxpayer because of refund or the Follow Jason on Twitter @JGCulotta return of money deposited with DOR, the interest rate is only

34

  Remove thishandytear-outpocketdirectorysoyoualwaysknowhowtocontactyourlegislators.

State LegislatureFor more information go towww.legis.wisconsin.gov Mailing address: PO Box 8952 (A-L) or PO Box 8953 (M-Z); Madison, WI 53708 Assembly email: Rep.[LAST NAME]@legis.wisconsin.gov Assembly Chief Clerk: 608.266.1501

State Assembly Top leaders in boldface Joint Finance Committee member Party. Phone Party. Phone Representative Office Representative Office Dist (608) Dist (608) Federal/State Officials A Allen, Scott R.97 266.8580 8 W M Macco, John R.88 266.0485 22 W August, Tyler (Speaker Pro Temp) R.32 266.1190 119 W Mason, Cory D.66 266.0634 6 N U.S. Senate B Ballweg, Joan R.41 266.8077 210 N Meyers, Beth (Min Caucus Sec’y) D.74 266.7690 409 N Senators of the 114th Congress Barca, Peter (Minority Leader) D.64 266.5504 201 W Milroy, Nick D.73 266.0640 126 N Senate Office Building, Washington, DC 20510 Barnes, Mandela D.11 266.3756 5 N Murphy, Dave R.56 266.7500 318 N Baldwin, Tammy (D) 717 Hart Senate Ofc Bldg 202.224.5653 Berceau, Terese D.77 266.3784 104 N Mursau, Jeffrey R.36 266.3780 113 W Contact through: baldwin.senate.gov Bernier, Kathy R.68 266.9172 314 N Murtha, John (Maj Caucus Chair) R.29 266.7683 309 N Johnson, Ron (R) 328 Hart Senate Ofc Bldg 202.224.5323 Billings, Jill D.95 266.5780 307 W N Nerison, Lee (Maj Caucus VC) R.96 266.3534 310 N Contact through: ronjohnson.senate.gov Born, Mark R.39 266.2540 312 N Neylon, Adam R.98 266.5120 125 W Bowen, David D.10 266.7671 3 N Novak, Todd R.51 266.7502 304 N th Brandtjen, Janel R.22 267.2367 121 W  Nygren, John (JFC Co.Chair) R.89 266.2343 309 E House of Representatives of the 114 Congress Brooks, Ed R.50 266.8531 20 N O Ohnstad, Tod D.65 266.0455 128 N House Office Building, Washington, DC 20515 Brooks, Robert R.60 267.2369 107 W Ott, Alvin R.3 266.5831 323 N Ryan, Paul (R) 1st Cong. District 1233 Longworth 202.225.3031 Contact through: paulryan.house.gov Brostoff, Jonathan D.19 266.0650 3 N Ott, Jim R.23 266.0486 317 N C Considine, Dave D.81 266.7746 412 N P Petersen, Kevin R.40 266.3794 105 W Pocan, Mark (D) 2nd Cong. District 313 Cannon 202.225.2906 Craig, David R.83 266.3363 127 W Petryk, Warren R.93 266.0660 103 W Contact through: pocan.house.gov  Czaja, Mary R.35 266.7694 321 E Pope, Sondy D.80 266.3520 118 N Kind, Ron D (D) 3rd Cong. District 1502 Longworth 202.225.5506 D Danou, Chris D.92 266.7015 107 N Q Quinn, Romaine R.75 266.2519 7 W Contact through: kind.house.gov Doyle, Steve D.94 266.0631 124 N R Riemer, Daniel D.7 266.1733 122 N Moore, Gwen (D) 4th Cong. District 2245 Rayburn 202.225.4572 E Edming, James R.87 266.7506 109 W Ripp, Keith R.42 266.3404 223 N Contact through: gwenmoore.house.gov G Gannon, Bob R.58 264.8486 12 W Rodriguez, Jessie (Maj Caucus Sec’y) R.21 266.0610 204 N Genrich, Eric D.90 266.0616 304 W Rohrkaste, Mike R.55 266.5719 208 N Sensenbrenner, F. James(R) 5th Cong. District 2449 Rayburn 202.225.5101 Goyke, Evan D.18 266.0645 303 W S Sanfelippo, Joe R.15 266.0620 306 N Contact through: sensenbrenner.house.gov H Heaton, Dave R.85 266.0654 9 W Sargent, Melissa D.48 266.0960 321 W Grothman, Glenn (R) 6th Cong. District 501 Cannon 202.225.2476 Hebl, Gary D.46 266.7678 120 N Schraa, Michael R.53 267.7990 320 E Contact through: grothman.house.gov Hesselbein, Dianne D.79 266.5340 9 N Shankland, Katrina (Asst Min Leader) D.71 267.9649 119 N Duffy, Sean P. (R) 7th Cong. District 1208 Longworth 202.225.3365  Hintz, Gordon D.54 266.2254 109 N Sinicki, Christine D.20 266.8588 114 N Contact through: duffy.house.gov Horlacher, Cody R.33 266.5715 17 N Skowronski, Ken R.82 266.8590 209 N Ribble, Reid (R) 8th Cong. District 1513 Longworth 202.225.5665 Hutton, Rob R.13 267.9836 220 N Spiros, John R.86 266.1182 15 N Contact through: ribble.house.gov J Jacque, Andre R.2 266.9870 212 N Spreitzer, Mark D.45 266.1192 420 N Jagler, John R.37 266.9650 316 N Steffen, David R.4 266.5840 21 N Governor Scott Walker (R) 608.266.1212 Jarchow, Adam R.28 267.2365 19 N Steineke, Jim (Majority Leader) R.5 266.2418 115 W 115 E, PO Box 7863, Madison, WI 53707 email: [email protected] Johnson, La Tonya D.17 266.5580 320 W Stuck, Amanda D.57 266.3070 4 W Lt. Gov Rebecca Kleefisch (R) 608.266.3516 Jorgensen, Andy (Min Caucus Chair) D.43 266.3790 113 N Subeck, Lisa D.78 266.7521 418 N 19 E, PO Box 2043, Madison, WI 53707 email: [email protected] K Kahl, Robb D.47 266.8570 322 W Swearingen, Rob R.34 266.7141 123 W Attorney General Brad D. Schimel 608.266.1221 Kapenga, Chris R.99 266.3007 221 N T Tauchen, Gary R.6 266.3097 13 W Dept of Justice, 114 E, PO Box 7857, Madison, WI 53707 Katsma, Terry R.26 266.0656 18 N Taylor, Chris D.76 266.5342 306 W Kerkman, Samantha (Caucus Sgt at Arms) R.61 266.2530 315 N Thiesfeldt, Jeremy R.52 266.3156 16 W Kessler, Frederick D.12 266.5813 111 N Tittl, Paul R.25 266.0315 219 N Kitchens, Joel R.1 266.5350 10 W Tranel, Travis R.49 266.1170 308 N Kleefisch, Joel R.38 266.8551 216 N V VanderMeer, Nancy R.70 266.8366 11 W Knodl, Dan (Asst Maj Leader) R.24 266.3796 218 N Vorpagel, Tyler R.27 266.8530 18 W 2015-16 Wisconsin Legislative  Knudson, Dean R.30 266.1526 304 E Vos, Robin (Speaker) R.63 266.9171 211 W Kolste, Debra D.44 266.7503 8 N W Wachs, Dana D.91 266.7461 302 N Pocket Directory  Kooyenga, Dale (JFC VC) R.14 266.9180 324 E Weatherston, Thomas R.62 266.0731 307 N Current as of January, 2015 Kremer, Jesse R.59 266.9175 17 W Y Young, Leon D.16 266.3786 11 N Krug, Scott R.72 266.0215 207 N Z Zamarripa, JoCasta (Min Caucus VC) D.8 267.7669 112 N Kuglitsch, Mike R.84 267.5158 129 W Zepnick, Josh (Caucus Sgt at Arms) D.9 266.1707 7 N www.wmc.org Kulp, Bob R.69 267.0280 15 W 501 E Washington Ave | Madison, WI 53703-2914 L Larson, Tom R.67 266.1194 214 N PO Box 352 | Madison, WI 53701-0352 Loudenbeck, Amy R.31 266.9967 306 E 608.258.3400 

CommitteesFor more information go towww.legis.wisconsin.gov State Legislature Mailing address: PO Box 7882, Madison, WI 53707-7882 Assembly Committees Assembly email: Rep.[LAST NAME]@legis.wisconsin.gov Assembly Committee on Aging and Long.Term Care Assembly Committee on Public Benefit Reform Assembly Chief Clerk: 608.266.1501 Weatherston (C), Quinn (VC), Petryk, Nerison, Bernier, R. Brooks, Sargent, Meyers, Brostoff Born (C), Kapenga (VC), Brandtjen, Vorpagel, Schraa, Kremer, Craig, Neylon, Krug, Tauchen, Assembly Committee on Agriculture Jorgensen, Goyke, Kolste, Spreitzer, Subeck Nerison (C), Novak (VC), Tauchen, A. Ott, Bernier, Ripp, Tranel, E. Brooks, Kitchens, VanderMeer, Assembly Committee on Rules State Senate Danou, Jorgensen, Goyke, Kessler, Considine Steineke (C), Vos (VC), August, Knodl, Murtha, Ballweg, Kuglitsch, Jagler, Born, Barca, Senator Party.Dist Phone (608) Office Assembly Committee on Assembly Organization Shankland, Jorgensen, Zamarripa, Pope Bewley, Janet D.25 266.3510 126 S Vos (C), Steineke (VC), Knodl, August, Murtha, Barca, Shankland, Jorgensen Assembly Committee on Small Business Development Carpenter, Tim D.3 266.8535 109 S Assembly Committee on Campaigns and Elections Tauchen (C), Edming (VC), Tranel, Hutton, Allen, Swearingen, T. Larson, Gannon, VanderMeer, Cowles, Robert R.2 266.0484 118 S Bernier (C), Vorpagel (VC), Thiesfeldt, Horlacher, Craig, Sanfelippo, Berceau, Zamarripa, Kessler Skowronski, Jorgensen, Sargent, Doyle, Barnes, Bowen Darling, Alberta (JFC Co.Chair) R.8 266.5830 317 E Assembly Committee on Children and Families Assembly Committee on State Affairs and Government Operations Erpenbach, Jon B. D.27 266.6670 104 S Rodriguez (C), Gannon (VC), R. Brooks, Vorpagel, Kerkman, Brandtjen, Heaton, Neylon, Johnson, Swearingen (C), Craig (VC), Jagler, Brandtjen, Kleefisch, Gannon, Ripp, Kulp, Tauchen, Vorpagel, Farrow, Paul (Asst Maj Leader) R.33 266.9174 323 S Billings, Kahl, Subeck Zamarripa, Sinicki, Kahl, Ohnstad, Brostoff Fitzgerald, Scott L. (Maj Leader) R.13 266.5660 211 S Assembly Committee on Colleges and Universities Assembly Committee on Tourism Gudex, Rick (Pres Pro Temp) R.18 266.5300 415 S Murphy (C), R. Brooks (VC), Rohrkaste, Quinn, Rodriguez, Petryk, Ballweg, Krug, Tranel, Macco, Tranel (C), Jarchow (VC), Mursau, Tauchen, Kleefisch, Kitchens, Born, A. Ott, Swearingen, Hansen, Dave (Asst Min Ldr) D.30 266.5670 106 S Wachs, Berceau, Billings, Hesselbein, Jorgensen Ballweg, Billings, Doyle, Ohnstad, Mason, Meyers Harris Dodd, Nikiya D.6 266.2500 3 S Assembly Committee on Constitution and Ethics Assembly Committee on Transportation Harsdorf, Sheila (Majority Caucus Chair) R.10 266.7745 122 S Kapenga (C), J. Ott (VC), Jagler, Kremer, Horlacher, Hutton, Kessler, Wachs, Goyke Ripp (C), Spiros (VC), Thiesfeldt, Weatherston, A. Ott, Sanfelippo, Vorpagel, T. Larson, Larson, Chris D.7 266.7505 5 S Assembly Committee on Consumer Protection Swearingen, Macco, Kahl, Danou, Kolste, Bowen, Meyers Lasee, Frank G. R.1 266.3512 316 S Krug (C), Tittl (VC), Katsma, Neylon, Nerison, VanderMeer, Sinicki, Pope, Young Assembly Committee on Urban and Local Affairs Lassa, Julie (Minority Caucus Chair) D.24 266.3123 20 S Assembly Committee on Corrections E. Brooks (C), Hutton (VC), Novak, Quinn, Steffen, Skowronski, Genrich, Young, Subeck Lazich, Mary (President) R.28 266.5400 219 S Hutton (C), Brandtjen (VC), Gannon, E. Brooks, Nygren, Kleefisch, Barnes, Pope, Bowen Assembly Committee on Veterans and Military Affairs LeMahieu, Devin R.9 266.2056 15 S Assembly Committee on Criminal Justice and Public Safety Skowronski (C), VanderMeer (VC), Weatherston, Petryk, Allen, Edming, Nerison, Heaton, J. Ott, Marklein, Howard R.17 266.0703 8 S Kleefisch (C), Kremer (VC), Spiros, J. Ott, Rodriguez, Horlacher, Novak, Born, Goyke, Kessler, Tittl, Hesselbein, Milroy, Sinicki, Goyke, Riemer Miller, Mark D.16 266.9170 7 S Zamarripa, Johnson Assembly Committee on Ways and Means Moulton, Terry R.23 266.7511 310 S Assembly Committee on Education Spiros (C), Macco (VC), Kerkman, Novak, Steffen, Jacque, Katsma, Petersen, Riemer, Zepnick, Nass, Stephen R.11 266.2635 10 S Thiesfeldt (C), Kitchens (VC), Jagler, Knudson, Rodriguez, R. Brooks, Horlacher, Murphy, Quinn, Ohnstad, Brostoff Olsen, Luther (JFC VC) R.14 266.0751 313 S Hutton, Pope, Sinicki, Genrich, Barnes, Considine Assembly Committee on Workforce Development Petrowski, Jerry R.29 266.2502 123 S Assembly Committee on Energy and Utilities Petryk (C), Weatherston (VC), Murphy, Ripp, Kuglitsch, Katsma, Kulp, Bernier, Brandtjen, Ringhand, Janis D.15 266.2253 22 S Kuglitsch (C), Steffen (VC), T. Larson, Jacque, Petersen, Weatherston, Tranel, Jarchow, Petryk, Kitchens, Shankland, Kolste, Riemer, Spreitzer, Bowen Risser, Fred A. D.26 266.1627 130 S Neylon, Zepnick, Kahl, Sargent, Genrich, Stuck Roth, Roger R.19 266.0718 306 S Assembly Committee on Environment and Forestry Senate Committees Shilling, Jennifer (Min Leader) D.32 266.5490 206 S Mursau (C), Krug (VC), Czaja, Kitchens, Swearingen, Edming, R. Brooks, Allen, Mason, Milroy, Senate Committee on Agriculture, Small Business, and Tourism Taylor, Lena C. D.4 266.5810 19 S Hebl, Stuck, Considine Moulton (C), Tiffany (VC), Harsdorf, Petrowski, LeMahieu, Vinehout, Hansen, L. Taylor, Tiffany, Tom R.12 266.2509 409 S Assembly Committee on Family Law Erpenbach Vinehout, Kathleen (Min Caucus VC) D.31 266.8546 108 S T. Larson (C), Bernier (VC), Thiesfeldt, Craig, Mursau, Kleefisch, Hebl, Johnson, Subeck Senate Committee on Economic Development and Commerce Vukmir, Leah R.5 266.2512 131 S Assembly Committee on Financial Institutions Gudex (C), Petrowski (VC), Darling, Lassa, Ringhand Wanggaard, Van H. (Maj Caucus VC) R.21 266.1832 319 S Craig (C), Katsma (VC), Kapenga, Jarchow, Sanfelippo, Born, Ballweg, Weatherston, Murphy, Senate Committee on Education Wirch, Robert D.22 267.8979 127 S Petersen, Kitchens, Doyle, Zepnick, Genrich, Sargent, Johnson, Brostoff Olsen (C), Darling (VC), Vukmir, Nass, C. Larson, Risser, Bewley Vacant 20th 266.7513 18 S Assembly Committee on Health Senate Committee on Education Reform and Government Operations Sanfelippo (C), Rohrkaste (VC), Edming, Skowronski, Kremer, Tittl, Kapenga, Petersen, Kolste, Farrow (C), Harsdorf (VC), Nass, Harris Dodd, Vinehout Zamarripa, Riemer, Subeck Joint Committees Senate Committee on Elections and Local Government Joint Committee for Review of Administrative Rules Assembly Committee on Housing and Real Estate LeMahieu (C), Farrow (VC), Wanggaard, Risser, Miller Ballweg (Co.C), Nass (Co.C), Knudson (VC), Lasee, LeMahieu, Miller, Harris Dodd, Jagler (C), Allen (VC), R. Brooks, Katsma, Murphy, Murtha, Young, Genrich, Stuck Senate Committee on Health and Human Services J. Ott, Hebl, Shankland Assembly Committee on Insurance Vukmir (C), Moulton (VC), LeMahieu, Carpenter, Erpenbach Joint Committee on Employment Relations Petersen (C), Heaton (VC), Gannon, Steffen, Jagler, Petryk, Craig, Tranel, Born, August, Doyle, Senate Committee on Insurance, Housing, and Trade Lazich (Co.C), Vos (Co.C), Steineke, Nygren, Barca, S. Fitzgerald, Darling, Shilling Danou, Berceau, Kahl, Young Lasee (C), Olsen (VC), Roth, Bewley, Harris Dodd Joint Committee on Information Policy and Technology Assembly Committee on Interstate Affairs Senate Committee on Judiciary and Public Safety Harsdorf (Co.C), Petersen (Co.C), Petryk (VC), Cowles, Roth, Carpenter, Vinehout, Loudenbeck, Jacque (Co.C), Billings (VC), Rohrkaste, E. Brooks, Kerkman, A. Ott, Horlacher, Young, Zepnick Wanggaard (C), Vukmir (VC), Lasee, Risser, L. Taylor Barca, Genrich Assembly Committee on Jobs and the Economy Senate Committee on Labor and Government Reform Joint Committee on Legislative Organization Neylon (C), Krug (VC), Tauchen, Allen, Kulp, Tittl, Kuglitsch, Macco, Rohrkaste, Steffen, Nass (C), Wanggaard (VC), Marklein, Wirch, C. Larson Lazich (Co.C), Vos (Co.C), S. Fitzgerald, Farrow, Shilling, Hansen, Steineke, Knodl, Barca, Ohnstad, Zamarripa, Barnes, Spreitzer, Stuck Senate Committee on Natural Resources and Energy Shankland Assembly Committee on Judiciary Cowles (C), Lasee (VC), Olsen, Miller, Wirch Joint Legislative Audit Committee J. Ott (C), Horlacher (VC), Thiesfeldt, Heaton, T. Larson, Kerkman, Wachs, Hebl, Goyke Senate Committee on Revenue, Financial Institutions, and Rural Issues Cowles (Co.C), Kerkman (Co.C), Macco (VC), Darling, Lazich, Vinehout, Bewley, Nygren, Sargent, Assembly Committee on Labor Marklein (C), Farrow (VC), Tiffany, Lassa, Ringhand Berceau Jacque (C), Spiros (VC), Knodl, Kapenga, Kulp, Kuglitsch, Sinicki, Mason, Ohnstad Senate Committee on Senate Organization Joint Legislative Council Assembly Committee on Mental Health Reform S. Fitzgerald (C), Lazich, Farrow, Shilling, Hansen Ballweg (Co.C), Lazich (Co.C), Darling, S. Fitzgerald, Gudex, Moulton, Petrowski, Wanggaard, Tittl (C), Jagler (VC), Ballweg, Novak, Sanfelippo, Rohrkaste, VanderMeer, Rodriguez, Riemer, Senate Committee on Sporting Heritage, Mining, and Forestry Shilling, L. Taylor, Risser, Miller, Vos, Steineke, August, Nygren, Knodl, Murtha, Mason, Barca, Sargent, Brostoff, Considine Tiffany (C), Roth (VC), Moulton, Wirch, Vinehout Shankland, C. Taylor Assembly Committee on Mining and Rural Development Senate Committee on Transportation and Veterans Affairs Joint Review Committee on Criminal Penalties Kulp (C), Mursau (VC), Bernier, Novak, Quinn, VanderMeer, E. Brooks, Krug,T. Larson, Kremer, Petrowski (C), Marklein (VC), Cowles, Carpenter, Hansen Jacque (Co.C), Wanggaard (Co.C), L. Taylor, Doyle Milroy, Danou, Billings, Considine, Spreitzer Senate Committee on Universities and Technical Colleges Joint Survey Committee on Retirement Systems Assembly Committee on Natural Resources and Sporting Heritage Harsdorf (C), Nass (VC), Gudex, Hansen, Bewley Lasee (Co.C), Murphy (Co.C), Marklein, Erpenbach, Kuglitsch, Mason A. Ott (C), Quinn (VC), Kleefisch, Born, Tittl, Edming, Mursau, Nerison, Ripp, Skowronski, Milroy, Joint Survey Committee on Tax Exemptions Danou, Hesselbein, Shankland, Spreitzer Senate Committee on Workforce Development, Public Works, and Military Affairs Remove this handy tear-out pocket directory so you always know how to contact your legislators. your contact to how know always you so directory pocket tear-out handy this Remove Roth (C), Gudex (VC), Farrow, C. Larson, Lassa August (Co.C), LeMahieu (Co.C), Tiffany, Carpenter, Swearingen, Hesselbein WMC at Home and on the Road

1 2

Wisconsin Safety Council Director Janie 1 Ritter, second from left, presented an award to InPro Corporation in Muskego to honor the achievement of 1.1 million hours worked without a lost time incident.

WMC’s Chris Reader presented to newly 2 elected legislators.

3

Kurt Bauer, center, was part of a panel discussing the Right to Work issue to the 3 Milwaukee Press Club. Also pictured here are Steve Lyons and David Haynes of the 4 Milwaukee Journal Sentinel.

The 2015 WMC Focus on Manufacturing Breakfast held in February focused on 4 energy issues in manufacturing. Wisconsin Public Service Commissioner Ellen Nowak keynoted the morning then joined the panel including Ed Paradowski, Apache Stainless Equipment Corporation; Chris Drees, Mercury Marine; Rob Cowen, Badger Alloys. The panel was moderated by Jim Morgan, WMC Foundation.

Ed Paradowski, president of Apache Stainless Equipment Corporation in Beaver Dam, 5 was interviewed on Madison's WISC-TV for his support of Right to Work legislation.

WMC’s Wisconsin Business World program visited American Family Insurance in 6 Madison where more than 250 high school students attended the day-long program to learn about free enterprise and the opportunities available in Wisconsin. 5

37 Wisconsin Business Voice 6 WMC asked these legislators to share their thoughts on the State Budget currently Statebeing debated. Budget Process

By Sen. Jon Erpenbach (D – Middleton)

e share a set of values in own people and it will be a challenge for us to bring ourselves Wisconsin that reach deeper back together. Consumer confidence and wage growth are the intoW our lives than the politics of the known predictors of our economy. But when half the state day. The value of a hard day’s work and feels ignored and wages stagnate, no one wins. doing things right the first time. An Reading this you may just say, “That sounds like a sore loser honest day’s pay for an honest day’s to me.” But the reality is that the voices that elected me to the work. Family and faith are our first State Senate carry half of this state. They spend half of the priority and we are happy when our money. Purchase half of the cars. Pray in half of the churches. neighbors enjoy that same prosperity. Re-train ourselves and our peers at work and in school. Walk We believe in causes and follow our down the hall at the veteran’s center or the senior center. passions with both practical and compassionate progress. It is Drive their kids to soccer, camps, music lessons and scout not easy to get us to change our minds. meetings. Punch the clock, work overtime without pay. There Forever the overachievers we love this Wisconsin Way and are no enemies amongst ourselves. There is no right way or we wear it proudly. The last few years in Wisconsin politics wrong way to move ahead with progress for Wisconsin. The have challenged the things we believe about ourselves and only failure is to move ahead without all of Wisconsin. how we see others too. Our government has taken the divide Forever an optimist, I see the vision of Wisconsin loud and and conquer perspective rather than recognizing we all have clear and it doesn’t have a “D” or “R” letter after its name. something of value to bring to the table. It is disappointing at Wisconsin will never succeed if we make enemies of our times to find myself and my colleagues deemed the enemy in friends and neighbors. The door is always open, we just need a state we all love the same. The attitude that someone must to walk in together. BV be torn down for someone else to rise up is arrogant, short sighted and the poor basic value that put Wisconsin behind Sen. Erpenbach represents Wisconsin’s 27th Senate District which our peers in economic growth. You cannot lose the negative includes parts of Dane, Green, Iowa, Sauk and Columbia counties. connotation that comes with a declaration of war on your

38 State Budget Process

By Rep. John Nygren (R – Marinette)

n February 3, Gov. Walker gave Economic Development Authority (WHEDA). Both of his budget address. His speech these authorities focus on economic development throughout Oofficially kicked off “Budget Season” Wisconsin; therefore, this merger will create a one-stop-shop in Madison and over the course of the for those invested in Wisconsin’s economic growth. The new next few months legislators will roll agency will be called the Forward Wisconsin Development up their sleeves and get to work on the Authority, and this authority’s board will solely comprise state budget. private sector members in order to better coordinate and focus After his address, the governor’s the mission of the agency. budget proposal was delivered to the Developing Wisconsin businesses will see benefits in the Legislature where it was introduced in the budget-writing governor’s proposal as well, as job creation and business Joint Finance Committee ( JFC). As Assembly Co-Chair of growth remain two of our top priorities this biennium. JFC, I like to remind people this introduction formally moves Gov. Walker has proposed to merge and streamline two the governor's plan to the Legislature, where lawmakers – existing tax credits; the Jobs Tax Credit combined with the guided by their constituents – can make edits, additions and Economic Development Tax Credit will now become the improvements to the proposal. The governor has provided us Business Development Tax Credit. This combination will with a solid starting point but now it’s the Legislature’s turn not only heighten flexibility in business tax incentives, but to make modifications. will streamline the credits and increase simplicity. Incentives In addition to ongoing priorities such as transforming including job creation, training, capital investment and education, health care reforms and investing in infrastructure, headquarters recruitment will benefit from a $10 million Gov. Walker’s budget contains reforms that will help grow general purpose revenue (GPR) annual refundable credit our economy and continue developing our state’s workforce. allocation under the Business Development Tax Credit. This These reforms include increased funding for worker is great news for developing businesses around the state. training programs, common sense state agency mergers As with any proposed budget, the legislature will reshape and opportunities for tax credits for developing Wisconsin and improve Gov. Walker’s proposed plan as it goes through businesses. the legislative process. Contrary to partisan rhetoric, no The governor has proposed to expand Wisconsin Fast Legislature has ever rubber-stamped a governor’s proposed Forward, a program designed to help reduce the skills gap by budget. Under our watch, the Joint Finance Committee will offering grants for high-demand programs. These programs carefully scrutinize all proposals, including those aimed at include training and hiring of skilled apprentices, youth job creation and economic growth. Ultimately Gov. Walker apprenticeships and K-12 schools that work to graduate will have final say, as he has the power to veto portions of the students with industry-recognized credentials. Gov. Walker is budget. However, we are confident the work our committee proposing to increase this grant funding by $10.4 million over puts into the budget will result in a document that is not only the biennium, which will increase accessibility to important the best for Wisconsin residents, but is also one Gov. Walker worker training programs throughout the state. will proudly be able to sign. BV The governor’s budget proposal also includes a common Rep. Nygren represents the 89th Assembly District which includes sense merger of the Wisconsin Economic Development parts of Marinette, Oconto and Brown counties. Corporation (WEDC) and the Wisconsin Housing and

39 Wisconsin Business Voice CHAMBER CORNER

Wisconsin Goes to Washington By Shannon Full

ou have probably heard the cliché, “When you have seen one Congress which will include reforms to the healthcare law, funding chamber, you’ve seen one chamber.” This refers to the fact that for transportation projects, corporate and individual tax reform, the eachY chamber of commerce differs based upon the composition international affairs budget and other significant topics. It is critical of our community and the diversified interests of our members. for the local chambers in Wisconsin, along with our members, to One thing I have learned from the 16 years leading a chamber is be visible in D.C. Therefore, WMC is working with local chambers that many of my members expect our chamber to advocate for throughout the state to put together a “Wisconsin State Business legislation to improve the business climate. This advocacy happens Fly-In” to Washington D.C. I strongly encourage all local chamber in many forms and to differing degrees. However, this (not so) executives to promote this event and join your colleagues and simple activity produces benefits for all businesses and can lead to business leaders in D.C. for an action-packed agenda of delegation big breakthroughs for our communities. visits, briefings on important business issues, networking with Whether your chamber endorses a formal legislative agenda or leaders from across the state, and of course, tours for those that you simply want to focus on enhancing your relationships with want to experience D.C. legislators by meeting with them on important issues, we all agree Our D.C. Fly In is scheduled in conjunction with the U.S. getting our members involved in this process is beneficial to the Chamber of Commerce Small Business Summit June 8-10, members and the legislators. This engagement happens at the local featuring national keynote speakers and panels of small business level, the state level and the federal level. owners from all over the country. Visit www.uschamber.com to I often hear from our elected officials the importance of hearing learn more about the Summit. As an attendee, you may either first-hand from the business community. Regarding our federal attend the Small Business Summit and special Wisconsin delegation, I have learned we get greater results if we not only Chamber meetings, or just sign up for the Wisconsin-only sessions. engage with them when they are here in our district, but if we go Either way, you will show your support for a pro-business agenda to them, to Washington D.C. Chambers all across the country, in Washington. through business leader visits to Washington D.C., demonstrate By coming together as a state, we can make a much greater the influence they have on the legislative process. This influence is impact on our representatives. They will see we are united in especially important on tough issues where votes are close. making federal laws more pro-growth and improving America’s There are many key issues that will be coming up in the 114th competitiveness. By visiting D.C. together, we can demonstrate our collective influence and the strong voice of Wisconsin business. BV Shannon Full is President & Chamber fun fact CEO of the Fox Cities Chamber of Commerce and Woodruff World's Largest Penny Industry.

The World's Largest Penny commemorates a 1953 fund-raising stunt. Dr. Kate Pelham Newcomb implored local school children to save their pennies so that Woodruff could build a hospital. TV picked up on the story and pennies were soon pouring in from all over the country - 1.7 million in all.

Woodruff got its hospital, and the schoolchildren of 1953 are just about ready to enter the new assisted living facility that now lives behind the penny.

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