Official magazine of Wisconsin Manufacturers & Commerce January 2014: Issue 9

War on Coal Energy Use in Wisconsin

Inside: 

Return on WMC Investment p. 29 Focus on Jobs Brings Results p. 25 Tort Reform Efforts p. 16

Dan Ariens, President & CEO of Ariens Company in Brillion WMC's incoming Chairman Modern Experience Matters

Modernize your organization by leveraging existing applications and pair them with modern technologies and a friendly user experience to create an innovative and affordable approach to business.

experience-matters.us Modern Experience Matters

WMC Board of Directors WMC OFFICERS WMC BOARD OF DIRECTORS CHAIR, Todd J. Teske, Randal W. Baker, President *Patricia Leonard Kampling, Gina A. Peter, CEO, Wisconsin Rajan Sheth, Chairman/CEO, Chairman, President & & COO, Joy Global Surface Chairman, President & CEO, Commercial Banking, Wells Mead & Hunt, Inc., Madison CEO, Briggs & Stratton Mining, Milwaukee Alliant Energy, Madison Fargo Bank Wisconsin, Jay L. Smith, Chairman Corporation, Wauwatosa Sidney H. Bliss, President & *Robert L. Keller, Chairman, Milwaukee & CEO, Teel Plastics, Inc., VICE CHAIR, Daniel T. CEO, Bliss Communications J.J. Keller & Associates, Inc., *Nicholas T. Pinchuk, Baraboo Ariens, President & CEO, Inc., Janesville Neenah Chairman, President & CEO, Karen L. Szyman, Executive Ariens Company, Brillion David H. Bretting, President *Scott E. Larson, Executive Snap-on Incorporated, Kenosha Director, The Chamber of SECRETARY, Tod B. & CEO, C.G. Bretting Director, Marshfield Area *Joseph T. Pregont, President Manitowoc County, Manitowoc Linstroth, Senior Partner Manufacturing Company, Inc., Chamber of Commerce & & CEO, Prent Corporation, Glen E. Tellock, Chairman, & Member & Past Chair of Ashland Industry, Marshfield Janesville President & CEO, The Management Committee, Mark D. Bugher, Chairman, Scott A. Mayer, President, QPS *Joel Quadracci, Chairman, Manitowoc Company, Inc., Michael Best & Friedrich Marshfield Clinic, Marshfield Employment Group, Brookfield President & CEO, Quad/ Manitowoc LLP, Madison *Thomas A. Burke, President *Patrick J. McConnell, CEO/ Graphics, Sussex John B. Torinus Jr., Chairman, TREASURER, *Timothy L. & CEO, Modine Manufacturing Owner, FLASH, Inc., Green *Jerry G. Ryder, Chairman, Serigraph Inc., West Bend Christen, Chairman & CEO, Company, Racine Lake InSinkErator Division, Emerson *S. Mark Tyler, President, Baker Tilly Virchow Krause, *Bradley D. Chapin, Executive *James J. McIntyre, President Electric Co., Racine OEM Fabricators, Inc., LLP, Madison Vice President, BMO Harris and CEO, Greenheck Fan Michael W. Salsieder, Woodville Bank, Milwaukee Corporation, Schofield President & General Counsel, Donald D. Wahlin, CEO, EXECUTIVE STAFF *Scott A. Fawcett, President *John A. Mellowes, Chairman Kolbe & Kolbe Millwork Stoughton Trailers, LLC, & CEO, Springs Window & CEO, Charter Manufacturing Company, Inc., Wausau Stoughton PRESIDENT/CEO Fashions, LLC, Middleton Company, Inc., Mequon Eric W. Sauey, Chairman Kurt R. Bauer *Todd Wanek, President Philip B. Flynn, President & J. R. Menard, Executive Vice & CEO, Seats Incorporated, & CEO, Ashley Furniture PRESIDENT, WMC CEO, Associated Banc-Corp, President & Treasurer, Menard, Reedsburg Industries, Inc., Arcadia FOUNDATION Green Bay Inc., Eau Claire *Edward H. Schaefer, President James R. Morgan *David J. Yanda, President James D. Friedman, Senior Van W. Nutt, Executive & CEO, Citizens Community & CEO, Lakeside Foods, Inc., Modernize your organization by leveraging existing applications and pair them with SENIOR VICE PRESIDENT Partner, Quarles & Brady LLP, Director, Middleton Chamber Federal, Eau Claire Manitowoc Michael R. Shoys Milwaukee of Commerce, Middleton Karl A. Schmidt, President & *Not pictured modern technologies and a friendly user experience to create an VICE PRESIDENT, Gary M. Gigante, President & Paul Palmby, Executive Vice CEO, Belmark Inc., De Pere GOVERNMENT CEO, Waupaca Foundry Inc., President & COO, Seneca *Charles A. Schrock, PAST CHAIRS, PICTURED innovative and affordable approach to business. RELATIONS Waupaca Foods Corporation, Janesville Chairman, President & CEO, Thomas J. Boldt, The Boldt Scott Manley Robert D. Kamphuis, *William C. Parsons, Integrys Energy Group, Green Company Bay VICE PRESIDENT, Chairman, President & President, Palmer Johnson Arthur W. Nesbitt, Nasco MARKETING CEO, Mayville Engineering Enterprises, Inc., Sturgeon Bay Kristine N. Seymour, International, Inc. Company, Inc., Mayville President, Wisconsin/Michigan *Katherine E. Pettersen Rockne G. Flowers, Nelson Markets, Humana, Inc., Industries, Inc. experience-matters.us Waukesha

… WISCONSIN In this issue 4 Economic Metrics that Matter Most Business Voice Kurt Bauer 5 Ariens Committed to Wisconsin From the Editor wmc incoming chairman ready to lead I never realized how many idioms there are using the word hill: Old as the Why Affordable Energy Matters hills… Head for the hills… Not worth a 6 Scott Manley hill of beans. Right now I’m personally struggling with “Over the Hill!” 10 EnergyEric Bott Is Good You see, I celebrated a milestone birthday in December. I’m not telling which one, but I suppose I’m still pretty 12 AnJim Uncommon Morgan Conversation young by most accounts. Especially when talking history. WMC was founded more than 100 years ago to help give 13 Delivering Skilled Workers, Customized a voice to Wisconsin’s employers. We MBusinessorna Foy, Solutions Wiscon sin Technical College System continue that important work today. WMC’s headquarters is located just 16 WMC's Tort Reform Efforts Gain National four blocks off the Capitol Square in Recognition Madison. It’s an inspiring feeling to Jason Culotta look up East Washington Avenue at the statehouse, which also happens to 18 Channeling Energy Resources to Serve Industry in be one of our state’s most impressive Wisconsin and Beyond architectural gems. At the same time, Reed Hall, Wisconsin Economic Development it is never lost on me that Wisconsin’s future is being decided in that Corporation building by a mix of elected officials and bureaucrats, including many who don’t understand free enterprise. That’s where WMC comes in. It’s been our job since 1911 to monitor 20-23 state government to make sure business has the strongest voice WISCONSIN AND THE WAR ON COAL possible. Of course, WMC’s advocacy should be no substitute for your WHERE ARE WE ON THE BATTLEFIELD? personal involvement in the political and legislative process. After all, businesspeople make the best lobbyists for business!

But we also know that you are busy running your business, which is why 25 FocusChris onReader Jobs Brings Results you belong to WMC in the first place. We know that many of our members expect us to keep watch on government so they don’t have to. And the evidence shows we do it pretty well. I hope you will take special note of 28 MyPat FirstSimonett 100 Days the Return on Investment chart on page 29 of this edition of Business . Voice 24 Wisconsin is a Coal State I also hope you will subscribe to WMC’s YouTube channel, WMC501. Ellen Nowak, Wisconsin Public Service Commission The channel includes interviews we have conducted with Governor Scott Walker, Lieutenant Governor Rebecca Kleefisch and numerous key law- and policymakers. 33 EPA’s Climate Regulations will Cool the Economy, We hope you agree it’s a pretty exciting time to be involved with WMC. We NNoticola thes Planet Loris , The Heritage Foundation will continue to fight for the things that will help keep you competitive…. and keep you from wondering “What in Sam Hill is going on in Madison?” 34 CorporateJanie Ritter Safety & C hucAuditsk P almer

38 BusinessJim Pugh Leaders Need to Reach Out Now Katy Ryder Pettersen Editor, Wisconsin Business Voice Legislative Priorities [email protected] 39 Scott Fitzgerald, Chris Larson, Robin Vos, and Peter Barca Wisconsin Business Voice is published quarterly by Wisconsin Manufacturers & Commerce. WMC is Wisconsin’s chamber of commerce, manufacturers’ association, and safety council representing businesses of all sizes and from every sector of the 40 Chamber Corner: Energy Issues Looming for economy. Send address changes to WMC, P.O. Box 352, Madison, WI 53701-0352. PWisconsinhilip Frit Businesssche WMC's physical address is 501 E. Washington Avenue, Madison, WI 53703, (608) 258-3400. This publication is proudly printed on paper made in Wisconsin. Kurt R. Bauer, WMC President/CEO Katy Pettersen, Editor ([email protected]) Jane Sutter, Designer ([email protected]) Economic Metrics that Matter Most Kurt R. Bauer, WMC President/CEO

he establishment news media fee increases. Under Governor Scott Walker Wisconsin has finally in Wisconsin loves economic ended more than 15 years of running multi-billion dollar deficits. In rankings,T just as long as the data fact, Wisconsin now has a $759 billion surplus and tax collections are reinforces a narrative they want up 8.4 percent over the last fiscal year. advanced. The most glaring recent Perhaps the most objective third-party evaluation of our state’s example is how the mainstream media improved fiscal condition is that Moody and Fitch both upgraded covered the Federal Reserve Bank of Wisconsin’s bond rating (Moody from AA2 to AA3, Fitch from Philadelphia’s State Leading Index, AA- to AA). That is a big contrast with many other states and the which predicts a state’s six-month U.S. Government, which have seen downgrades during the same growth rate. period. Several major media outlets covered the Wisconsin also has a record balance in its Budget Stabilization Fund index in June last year when Wisconsin (a.k.a., rainy day fund) of $278 million and the state pension system was ranked 49th in projected growth is among the strongest in the nation. compared to the other 50 states. Obviously, that was not good news. And let’s not forget how effective Act 10 has been at saving taxpayers money ($2.7 billion and counting), while also preventing mass layoffs The Milwaukee Journal Sentinel, the of public employees by giving local officials more flexibility. state’s largest newspaper, thought highly enough of the Philadelphia Fed’s Unemployment Rate: While admittedly not as fast as we would pessimistic prediction that it decided to all like, Wisconsin is growing jobs and our unemployment rate has place a story about it on the top of the been, and continues to be, lower than the national rate; 6.3 percent front page on June 6 (“State is 49th in for Wisconsin in November 2013 versus 7 percent for the U.S. Forecast for Economy”). Several other Wisconsin’s unemployment rate was 9.2 percent when Walker took media outlets also gave the story prominent coverage, including the office in 2011. Appleton Post Crescent and WISC-TV in Madison. Of the jobs Wisconsin is creating, a significant number have But something interesting happened just a few months later; the been in the manufacturing sector and we could add even more if Philadelphia Fed index began to improve Wisconsin’s economic manufacturers could find more qualified and interested workers. In outlook ranking and the state eventually hit number one in projected October, the federal Bureau of Labor Statistics said Wisconsin was growth in September 2013. Many of the same media outlets that number one in the nation in net new manufacturing job growth. believed the poor ranking was news decided That is good news for two reasons: Manufacturing that a good ranking wasn’t. Instead, the jobs pay on average about 30 percent above media narrative suddenly shifted away “95 percent of WMC’s the median and one factory job creates from Wisconsin’s now positive growth members said in our most recent between 2.5 and 3.5 jobs in other outlook and onto dismissing the business sectors. credibility of the Philadelphia Fed’s economic survey that Wisconsin is Other states may be growing jobs at a index as an appropriate measurement faster rate, but many of those states also of the state’s current and future headed in the right direction.” lost more jobs during the Great Recession economic status. so they have more ground to make up. And many That kind of uneven (to put it politely) coverage is unfortunate, but of the jobs being added in some states are part-time positions as all too common. In fact, biased and/or limited media coverage of opposed to family supporting ones. business issues is the reason WMC began publishing this magazine Business Confidence: Optimistic businesses hire and invest; two years ago and why we built our own video studio (see page pessimistic ones don’t. That’s why business confidence is important 37). It is also why WMC’s Issue Mobilization Council, Inc. spent and why you have heard so many business leaders complain about $1 million last fall on statewide television ads educating the public the persistent “uncertainty” that has made the economic recovery about Wisconsin’s improving business climate. from the Great Recession stubbornly anemic. But the Philadelphia Fed episode poses an interesting question: The economists at the Philadelphia Federal Reserve Bank aren’t What are the most important measures of how the state’s economy the only ones to take note of the positive changes to Wisconsin’s is performing? No matter who does them, rankings are arbitrary and business climate beyond the fiscal reforms already mentioned. some, like the Philadelphia Fed index, are prone to erratic swings. Reducing taxes, regulatory burdens and frivolous lawsuits are reforms That‘s why I think the best economic metrics to follow are the that tend to get noticed by the business community as well. That state’s fiscal condition, the unemployment rate and overall business explains why 95 percent of WMC’s members said in our most recent confidence. economic survey that Wisconsin is headed in the right direction, Fiscal Condition: Stable state finances generally mean a stable while 89 percent said state government is either very or somewhat state business climate, at least as it relates to the threat of tax and pro-business. BV Follow Kurt on Twitter @Kurt_R_Bauer 4 Ariens Committed to Wisconsin

WMC Incoming Chairman Ready to Lead

an Ariens feels like he has a stake in might ask for the school system to deliver making Wisconsin a great place to the candidates with all of the required skills Dlive and work. intact. The Ariens Company’s roots go back “Give me a good problem-solver and I 80 years in Wisconsin when his great- can train him to weld,” says Ariens. “The grandfather, Henry Ariens, began designing challenges we face change so quickly that “We each have our own agendas for our some of the first rotary tillers in the U.S. employees do best when they can adapt and businesses and Wisconsin businesses Today, the company produces a range of resolve those challenges.” certainly span a wide range of interests. outdoor power equipment for consumer and But that is exactly where the strength of an Dan has partnered with the Brillion High organization like WMC exists -- bringing commercial use, and it operates a distribution School to build the state-of-the art Ariens business of niche outdoor brands in the a consensus view to policy makers on our Technology and Education Engineering behalf.” direct marketing arena. Although Ariens Center. Although the center is equipped Company has operations in Indiana, with the latest technology, the core of Ariens is also looking forward to helping Nebraska, Europe and Australia, Dan is the curriculum is built around problem- ensure the business perspective is heard committed to solving Wisconsin’s unique solving. Now more than when it comes to public policy. economic development challenges. three-fourths of “As the people who “The fact that jobs in Wisconsin go unfilled the students at the “Give me a good make decisions every while we have an unemployed population school participate in problem-solver and I can day that drive our state is a very real structural skills mismatch that technology classes – economy, we have a must be on the agenda,” says Ariens. “When those planning to go train him to weld.” legitimate voice that can you factor in the aging demographic in the into medical fields, teaching enhance public policy debates,” says state this has the potential for long-term jobs or the service sector. Ariens. “We can bring the daily reality of implications.” “Our traditional hands-on culture in the what’s happening in towns and cities and Ariens has been a strong advocate for workplace needs to evolve into a ‘minds-on’ workplaces across Wisconsin, one job at a business-education partnerships as a way culture. And I mean for every level of job,” time.” to resolve part of this skills mismatch and says Ariens. “Problem-solving is not only Dan holds other leadership roles in the prepare for changing demographics. But his the domain of the engineer designing a Wisconsin business community, serving on approach differs from business leaders who product or a system. It’s the domain of every several Boards of Directors for educational employee if we want to be entities, for-profit companies and non- successful.” profit economic development groups in the Ariens developed this state, including the role of Vice Chair for perspective on his journey of the Wisconsin Economic Development becoming a strong proponent Corporation (WEDC) Authority Board of Lean manufacturing created by Governor Scott Walker. principles which he began But it’s safe to say one of the roles he implementing in 1998. Since relishes most is his position on the Executive then, he has been recognized Committee of the Green Bay Packers’ Board with the Eli Whitney of Directors. He views this role through Productivity Award from the the lens of economic development as well, Society of Manufacturing understanding clearly what that organization Engineers and is frequently means to the city and the state. tapped as a mentor by Dan and his wife, Julie, live in Green Bay organizations promoting Lean where they are very active in the local leadership. In 2012, Ariens was community. They enjoy spending time with inducted into the Association family that includes five children, each of for Manufacturing Excellence whom are becoming involved with the Hall of Fame. It’s the skills he’s family business in some way – the fifth developed as a Lean leader that generation of Ariens family members to he hopes to use in his role as do so. BV WMC Chair.

5 Wisconsin Business Voice ENERGY

Scott Manley WMC Vice President of Government Relations

Why Affordable Energy Matters ffordable energy is the lifeblood of any economy, and that is advancements in pollution control especially true for a state like Wisconsin which often leads technology mean our air is cleaner theA country in manufacturing jobs per capita. today than it was 20 years ago, Businesses in Wisconsin consumed roughly 939 trillion British despite the fact that we continue to Thermal Units (BTUs) of energy in 2011. To put that number into burn more coal. perspective, it exceeds the amount of energy that every household Coal’s status as the most abundant in Wisconsin used for gasoline to fuel their cars, electricity to power and affordable fuel source is now their homes and gas to heat their houses -- combined. under fierce competition from another energy source: natural gas. Given the magnitude of energy used by businesses, it is difficult to Thanks to advancements in the hydraulic fracturing (fracking) imagine a competitive business climate in Wisconsin without the process, our country’s proven reserves of natural gas have grown availability of affordable energy. to 348 trillion cubic feet. This is great news for consumers because increases in supply have translated into significant reductions in Our manufacturing sector, which accounts for more than 450,000 price. jobs and about 20 percent of our economic output, is a great case study in the importance of affordable and reliable energy sources. Five years ago, the average price for natural gas was $8.16 per In total, industrial firms amounted to only 0.15 percent of all thousand cubic feet. The vast resources unlocked through fracking electricity customers in Wisconsin in 2012, but because they use so have reduced that price more than threefold, down to $2.65 in 2012. much energy, they accounted for about 33 percent of all electricity Fracking is having a similar effect on petroleum prices, as access to consumed. shale oil has contributed to a 15 percent increase in our country’s oil While the average monthly electric bill in Wisconsin was $92 per reserves. We now have 49 billion barrels of proven oil reserves, and household in 2011, the average industrial electric bill was $31,570 that number is expected to grow. per month that same year. With a typical industrial firm spending Although Wisconsin is not home to any of the shale oil or gas about $3.8 million per year on electricity, it’s easy to see why deposits driving this energy renaissance, it’s difficult to access manufacturers remain keenly focused on the these newfound resources without our sand. affordability of energy. Taken together, Wisconsin is blessed with some of the Wisconsin businesses spend about $4 “…it is difficult to imagine a hardest and roundest sand in the country billion per year on electricity, and another competitive business climate in – the type that is ideal for use in the $1.5 billion on natural gas. That’s more fracking process. Wisconsin’s sand mining than Wisconsinites spend each year on Wisconsin without the availability boom has created thousands of new jobs beer and cheese combined. of affordable energy.” and many prosperous businesses in the Fortunately, Wisconsin has invested in coal as northern and western portions of our state. an affordable source of electricity for consumers. In 2011, the cost of The lower energy prices from fracking are helping businesses and coal per million BTU was $3.86, which was less than half the cost households alike. A recent study by IHS Global Insight found that of natural gas, its next closest competitor. Unfortunately, the Obama lower energy prices increased disposable income by $1,200 per Administration’s protracted war on coal threatens the affordability household in the U.S. last year. That number is projected to grow to of energy in our state at a time when businesses and consumers can $3,500 per household by 2025. least afford it. Lower energy costs are also helping speed the recovery of our Consider that more than 60 percent of the electricity in our state manufacturing sector. For example, Wisconsin created 9,700 net new is generated from coal. That’s more than the amount generated manufacturing jobs from October of 2012 through October of this from natural gas, nuclear and renewable energy combined. In July year - the second-most in the country. 2013, Wisconsin ranked 11th in the country in the amount of coal Our state and our country are on the verge of a new era of economic consumed for electric generation. prosperity and stability because of our domestic energy resources. Why do we use so much coal in our state? The answer is simple: it’s The biggest question is whether misguided federal policies designed inexpensive and it’s abundant. to bankrupt coal and hinder fracking activity will prevent us from The United States has more than 480 billion tons of coal reserves, realizing this enormous potential.BV which is the largest in the world. Our country has enough coal to Follow Scott on Twitter @ManleyWMC meet our energy needs for about 300 years into the future. And

6 Teske Turned Challenges into Success oycotts of businesses, historic recall elections and the Jim Haney with Kurt Bauer. “The last two years have certainly succession of WMC's chief staff executive. Those are just a been full of challenges,” said Teske. “The WMC team did a great Bfew of the challenges Todd Teske faced during his two-year term job working through the issues by being true to the goal of making as WMC Chairman, which will end later this month. Teske, Wisconsin a better place to do business. I am proud to have served Chairman, President & CEO of Wauwatosa-based Briggs & with this talented group. It has been a pleasure working with Kurt in Stratton Corporation, met each challenge head-on and in the his smooth transition as CEO. The organization is well positioned process logged an impressive success record. for continued success under Kurt's oversight.” BV Under Teske’s leadership, WMC helped enact at least 60 pro- business reforms, including tax relief for manufacturers, farmers and individual taxpayers. WMC also helped protect those reforms by supporting pro-business candidates during the recall and general elections in 2011 and 2012, respectively. In addition, Teske took an active role in addressing Wisconsin’s professional and technical workforce shortage by, among other things, reconstituting Manufacturing Month, a statewide and collaborative effort to promote manufacturing careers. Teske also pushed for WMC to be more active on federal issues that impact business and to aggressively promote free enterprise via the Business World program, which teaches high school students about business and the opportunities available in Wisconsin. Todd Teske’s (center) two-year term as WMC Chairman expires in During Teske's term, WMC introduced Wisconsin Business Voice January. He will be succeeded by Dan Ariens (right). The two men are magazine and built a video studio to better inform member pictured with WMC President Kurt Bauer during a recent WMC board businesses. And if that wasn’t enough, Teske also served on the meeting. CEO search committee that eventually replaced 26-year veteran PowerForward

Moving energy into the future.

You count on reliable, affordable electricity at home and work. American Transmission Co. is preparing today for a brighter tomorrow by pursuing electric grid improvements that power local businesses and communities. www.atcllc.com WMC Staff Denise Anderson, Accounting Assistant Pam Kelly, WSC Customer Service Specialist Jim Pugh, Director of Public Relations & Mary Anderson, Database Specialist Kay Kertz, Director of Finance Issue Management Megan Barlow, Members Relations Adam Kettler, Membership Development Sarah Prisacari, Accounting Assistant/ Coordinator Manager Receptionist Kurt Bauer, President/CEO Rich Laufenberg, Employee Benefits Robert Ramsdell, Information Systems Clerk Steve Benzschawel, Director of Business World® Administrative Manager Chris Reader, Director of Health & Human Resources Policy Nancy Boehnen, Assistant to the President/ Bryson Machonga, Membership Development Board Manager Dennis Reiter, Systems Administrator Eric Bott, Director of Environmental & Karen Mahlkuch, Associate Director of Janie Ritter, Director of Wisconsin Safety Energy Policy Government Relations Council Ute Bruns, Employee Benefits Account Scott Manley, Vice President of Government Samantha Sepic, Marketing Coordinator Manager Relations Mike Shoys, Senior Vice President Russ Cain, Director of Insurance Services Brian Mirr, WSC Membership & Customized Patrick Simonett, Director of Membership Coordinator Thom Cox, Membership Development Manager Jordan Smith, Associate Director of Jim Morgan, WMC Foundation President Jason Culotta, Director of Tax & Government Relations Transportation Policy Susan Nyffenegger, Executive Assistant Leah Supensky, Associate Director of Public Barb Deans, WSC Education Coordinator & Amanda Pavelec, Human Resources Manager Relations Member Relations Katy Pettersen, Vice President of Marketing Jane Sutter, Graphic Designer Keith Hudson, DB/Web Administrator

www.wmc.org @WisconsinMC WisconsinMC WMC501 608.258.3400

8 You see the destination. We see your path.

Insight. Experience. Passion for business. And a promise that we’ll work as hard making your business a success as we do our own. Because to us, the only true measure of our success is yours.

OFFICES IN MILWAUKEE, MADISON, WAUKESHA, GREEN BAY AND APPLETON, WISCONSIN AND WASHINGTON, D.C. © 2013 Godfrey & Kahn, S.C. ENERGY

Eric Bott WMC Director of Environmental & Energy Policy Energy Is Good eadlines don’t paint a pretty portrait of in energy usage and technologies. Pre- energy these days. The media is quick agricultural societies were extremely limited Hto bash coal as dirty and nuclear as scary. by their lack of access to energy. Through Matt Damon wants us to believe hydraulic caloric intake and limited use of fire, they fracturing is going to cause our kitchen were only able to muster ten gigajoules sinks to catch fire. Even renewables don’t (GJ) of energy production per person each get a pass. Political scandals plague the year, or less than the energy potential of solar industry while stories about windmills’ two barrels of oil. When ancient Egyptians murderous wrath on avian populations increased energy production to 15 GJ frequent the front pages. The whole energy through advancements in smelting, the New Thomas Edison and Enrico Fermi and it sector has a black eye, the net effect of Kingdom arose, art and culture flourished, continues today. which is to create a cultural mindset that monotheism was created and civilization I’m not saying energy is the only catalyst energy is at best a necessary evil. It is not. took several great leaps forward. for human advancement. Countless factors Energy is good. It’s a virtue and a blessing. A millennium and a half later the Chinese influence a calculus as complex as the Energy, more than any other factor, is adopted the use of coal, increasing per evolution of human society; however, if one what allowed and allows humans to leave capita energy production to 20 GJ. The Han looks at each period of revolutionary human subsistence agriculture (or worse), organize as dynasty prospered for 400 years advancing advancement they will find it inseparably societies, and create and advance civilization. astronomy, metallurgy and medicine and tied to some innovation in humanity’s ability Throughout history the evolution of human creating a helpful little invention called paper. to harness and apply energy. In fact energy societies has been sparked by advancements Medieval Europeans doubled that production and human development are so inextricably through the use linked, there’s even an equation for it: of peat and the Energy=Progress=Civilization. application of Two centuries ago seven out of every ten water wheels. Americans labored on the farm. Life for most Along came the was a brutal toil. Thanks to advancements Renaissance. in automation and energy generation, our The modern stomachs no longer rely on the kinetic era began when limitations of our bodies and work animals. Thomas Savery Fewer than two Americans in a hundred now and Thomas work the land to feed the nation. Newcomen Humanity on a vast scale now has the ability partnered in to devote countless resources to scientific developing a advancement, the time for philosophical steam engine and social contemplation, and the leisure that could drain to create and enjoy fine art, music, film and water from coal even the slow food movement, all because of mines. Energy our access to energy. So the next time you’re production in dining with friends, remind them their plates England rose of locally sourced pan seared foie gras and to 100 GJ per organic micro greens are made possible by Biomass Power Plant capita and the availability of cheap, reliable energy (and Coal Power Plant a revolution yes that does mean coal and petroleum). Hydroelectric Power Plant in industry You might also take the time to remind Natural Gas Power Plant and human Nuclear Power Plant them electricity doesn’t come from the wall advancement Other Power Plant but I digress. Energy’s had a bad rap in this Petroleum Power Plant followed. This country for too long and it doesn’t deserve it. Wind Power Plant story continued It’s time to face facts. Energy is good. BV Wood Power Plant through Petroleum Refinery the work of Follow Eric on Twitter @BottWMC

10 Business Day in Madison: February 6, 2014 Monona Terrace Community & Convention Center, Madison

KEYNOTE ADDRESS PROGRAM EMCEE CLOSING KEYNOTE Charles Payne Charlie Sykes Governor Scott Walker Founder, CEO & Chief Analyst Talk Show Host, WTMJ Radio- Governor Walker will speak on of Wall Street Strategies; Fox Milwaukee Wisconsin's business climate Business Network Contributor; and his legislative goals. Award-winning Author “It Can Still be Morning in America”

FEATURED SPEAKERS Robert O’Neil Daniel Christman A.B. Stoddard Team Leader, Naval Special Sr. Counselor to U.S. Chamber Associate Editor and Columnist Warfare Development Group; President for The Hill Retired Member, Seal Team Six “A Tour of a Challenged “Politics and Public Policy - “Never Quit: The Story of a Life World” 2014 and Beyond” Built on Successful Missions”

Business Day in Madison Partners American Council of Engineering Wisconsin Builders Association Diamond Sponsors Companies of Wisconsin Wisconsin Economic Development Consumer Rights Wisconsin Association Independent Business Association of Wisconsin Hospital Association Wisconsin Wisconsin Insurance Alliance Midwest Food Processors Association Wisconsin Manufacturers & Commerce National Federation of Independent Wisconsin Motor Carriers Association Business Wisconsin Paper Council Plumbing and Mechanical Contractors Association of Milwaukee and Wisconsin Restaurant Association Southeastern Wisconsin Wisconsin Retail Merchants Association Sheet Metal and Air Conditioning The Wisconsin Utilities Association Platimun Sponsors Contractors’ Association of Milwaukee Alliant Energy Georgia-Pacific Wisconsin Association of Health DeWitt Ross & Stevens S.C. Michael Best & Friederich LLP Underwriters

Chamber of Commerce Partners Adams County Chamber of Commerce & Tourism • Baraboo Area Chamber of Commerce • Beaver Dam Area Chamber of Commerce • Beloit Chamber of Commerce, Greater • Greater Brookfield Chamber of Commerce • The Chamber of Manitowoc County • The Chamber for Superior & Douglas County Wisconsin • Cross Plains Area Chamber of Commerce • DeForest Area Chamber of Commerce • Delafield Area Chamber of Commerce/Tourism • Dodgeville Area Chamber of Commerce • Eagle River Area Chamber of Commerce • Eau Claire Area Chamber of Commerce • Elkhart Lake Area Chamber of Commerce • Fond du Lac Area Association of Commerce • Fort Atkinson Area Chamber of Commerce • Forward Janesville, Inc. • Fox Cities Chamber of Commerce and Industry • Germantown Area Chamber of Commerce • Grafton Area Chamber of Commerce • Green Bay Area Chamber of Commerce • Hartland Area Chamber of Commerce • Heart of the Valley Chamber of Commerce, Inc. • Heart of Wisconsin Chamber of Commerce • Hudson Area Chamber of Commerce & Tourism Bureau • Jefferson Chamber of Commerce • Johnson Creek Area Chamber of Commerce • Kenosha Area Chamber of Commerce • Marshfield Area Chamber of Commerce & Industry • Metropolitan Milwaukee Association of Commerce • Middleton Chamber of Commerce • Monroe Chamber of Commerce • Oregon Area Chamber of Commerce • Oshkosh Chamber of Commerce • Platteville Chamber of Commerce • Portage Area Chamber of Commerce • Portage County Business Council • Prairie du Chien Area Chamber of Commerce • Rhinelander Area Chamber of Commerce • Rice Lake Area Chamber of Commerce • River Falls Area Chamber of Commerce & Tourism Bureau • Sparta Area Chamber of Commerce • Stoughton Chamber of Commerce • Sun Prairie Chamber of Commerce • Watertown Area Chamber of Commerce • Waukesha County Business Alliance, Inc. • Waupaca Area Chamber of Commerce, Inc. • Wausau Region Chamber of Commerce • Wauwatosa Chamber of Commerce • West Bend Area Chamber of Commerce

Register Today Cost: $165 per person; $1,220 per table of 8 Questions? Call (608) 258-3400 www.businessdayinmadison.com EDUCATION

Jim Morgan WMC Foundation President

An Uncommon Conversation Wisconsin, Rightfully, Moves Forward with the Common Core Standards

hat should students know and be able to do? school leaders on the development of the standards in 2009, and That question has set off an educational firestorm that we Wisconsin adopted them in 2010. The purpose of the standards is haveW not seen since “outcome-based education” was introduced. to “provide a consistent, clear understanding of what students are A recent series of public hearings and legislative proposals on the expected to learn, so teachers and parents know what they need to do Common Core Standards - already in place in Wisconsin schools to help them. The standards are designed to be robust and relevant for English/Language Arts and Mathematics (Science to follow) - to the real world, reflecting the knowledge and skills that our young reignited the debate which continues as I write this article. people need for success in college and careers.” During my almost three decades at Wisconsin Manufacturers & This is a good thing, and here is why. Commerce, I have always had one foot in the business arena and Consistency. From district to district and state to state, we will the other in the education arena. Two fields that seemingly would establish a foundation of what students need to know and be able to have a great deal of common interest yet were often on opposite do. sides of political and fiscal issues. And, as the husband of a Madison Accountability. Common Core requires accountability, high public school teacher, home was the setting for as many interesting standards and testing. We will have results and the ability to set a conversations as at the Capitol. course for improvement where needed. For more than 25 years, Wisconsin businesses (and employers Competitiveness. If we are to compete globally, we must ensure our everywhere) have been asking for accountability and measurement students are truly ready for further education and a career that allows in schools. These companies are driven by data, and have struggled them to succeed in the global marketplace. to understand educational measurement because so many different systems have been used throughout the Innovation. The standards encourage creative teachers to years. How do we know a school “The standards are not a continue to reach students in creative ways. Contrary district or school building is doing to what some proclaim, the standards are not a a good job educating students? national curriculum requiring national curriculum requiring everyone to teach How do we know what a high everyone to teach the same thing on the same thing on the same day from the same school student knows? How do book. The standards are the “what” and not the we compare to the rest of the state? the same day from the same book.” “how.” The country? The world? We live in a Quality. The Common Core Standards have been competitive environment, and the quality, knowledge and talent of the benchmarked and are more rigorous than past standards. They individual is going to be the differentiating factor. focus on math, reading and science; require students to evaluate Also for more than 25 years, educators have been looking for evidence and formulate conclusions; include problem solving and consistent, measurable outcomes. In a system where the school board critical thinking; and evaluate what students will need to know to be members and superintendents have tenure of just a few years, there workplace- and college-ready. have to be benchmarks that transcend the individuals. You cannot While there is a great deal of concern being spread about a national change direction every three years and hope to reach your destination. textbook, cameras in classrooms to monitor teachers, and a complete With that in mind, let me provide a little history. loss of local control; the recent legislative review has resulted in clarity and an affirmation that, in Wisconsin, local control remains In 1996, at the National Education Summit, a bipartisan group the authority on education. However, the reality is the standards have of governors and business leaders decided to create and lead an been years in development, are well documented and are in place in organization dedicated to supporting standards-based education nearly all Wisconsin districts. They have given local communities a reform efforts across the states. Several initiatives were spawned and common purpose, the states a common goal and our country a tool all of that work eventually led to the Common Core Standards. to ensure our long-term success. The Common Core makes common The National Governors Association and the Council of Chief State sense for Wisconsin’s school districts. BV School Officers began working with local educators, businesses and Follow Morgan on Twitter @JimMorgan1960 12 Delivering Skilled Workers, Customized Business Solutions By Morna K. Foy

ince becoming president of the Wisconsin Technical College programs and certificate offerings focus on a specific skill set and System (WTCS) in January 2013, I’ve appreciated the take less than a year to complete. Swelcome extended to me by the leaders and membership of The colleges also deliver apprentice-related instruction, which Wisconsin Manufacturers & Commerce. It’s clear to me the combines on-the-job training with classroom instruction to allow fundamental goals of our organizations – creating opportunities to students to learn the practical and theoretical aspects of a high- experience success and prosperity – remain closely aligned. skilled occupation in a variety of construction, service or industrial Wisconsin’s technical colleges do that by building skill pipelines in occupations. collaboration with businesses, K-12 partners, and local and regional In addition, the system is the premier provider of customized workforce and economic development experts. These partnerships business solutions and technical assistance for Wisconsin’s leading allow us to reach and teach those interested in starting or advancing businesses, large and small. For businesses looking to enhance in a promising career, or acquiring new skills to transition into one. competitiveness or expand, local technical colleges are cost-effective Your role is vital: working with your local technical and eager partners. colleges to ensure our courses and programs are based in rigorous and relevant skills instruction. “The technical colleges are Wisconsin’s technical colleges have also emerged as the state’s newest “graduate With your valued partnership, WTCS has a first-call collaborator for school,” offering a variety of advanced remained at the heart of the state’s workforce, Wisconsin’s employers.” certificate options that complement two- economic, and community development for more and four-year degrees to enhance job skills. than a century. Whether delivering highly skilled graduates Employers often look to applicants holding through industry-driven programs on campus, or enhancing advanced technical certificates to meet their need for highly skilled competitiveness with customized business solutions on-site, the workers. technical colleges are a first-call collaborator for Wisconsin’s employers. The fact that nearly 90 percent of WTCS graduates consistently are employed within six months of graduation means our colleges and With 48 campuses and many outreach centers serving communities employer partners have found success in ensuring the skills taught throughout Wisconsin, the technical colleges offer an unmatched are relevant and sought-after. breadth of learning opportunities. The colleges offer more than 300 programs awarding two-year associate degrees, one- and two- Wisconsin technical colleges have been providing a demonstrated year technical diplomas and short-term technical diplomas and return on investment for employers and students for more than a certificates. Nearly 370,000 individuals access the technical colleges century, and we look forward to continued, shared success. for education and training each year. Visit www.witechcolleges.org/employers for more information. BV Applied associate degree programs combine high-end technical Morna Foy is President of the Wisconsin Technical skills with general education, including math, communications, and College System social sciences, while one- and two-year technical diploma programs emphasize hands-on occupational skills. Short-term diploma

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WMC staff members were in Washington, DC in 1 October to receive an award for state legal reforms. While there, they visited Capitol Hill to meet with members of the Wisconsin Congressional Delegation, including U.S. Rep. Paul Ryan (R-Janesville).

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Wisconsin and Chiba, Japan became sister-states in 1990 and 2 participate in science and technology, education, health and culture exchanges. WMC’s Janie Ritter visited Kikkoman Foods' Walworth plant with a recent Chiba delegation visiting Wisconsin.

WMC staff visited Iron County last fall to tour the proposed 3 site of an iron ore mine. During the visit, WMC also spoke with numerous local businesspeople about the need to create jobs in northern Wisconsin.

The WMC Small Business Committee heard from Lt. Governor 4 Rebecca Kleefisch, seated center right, during their November meeting.

Four of WMC’s past chairmen were in town to visit WMC’s newly 5 remodeled first floor. From left: Raymond E. Gregg, Jr., Randall S. Knox, Rockne G. Flowers, Arthur W. Nesbitt.

More than 70 chamber professionals attended the Wisconsin 6 Chamber of Commerce Executives Annual Conference in 5 Wisconsin Dells last fall.

6 TORT REFORM Jason Culotta WMC Director of Tax & Transportation Policy

WMC’s Tort Reform Efforts Gain National Recognition ctober marked a significant • Re-establishing a “frivolous claims” achievement for WMC when the U.S. statute allowing those determined to OChamber of Commerce’s Institute for Legal bring these suits be held liable for costs • Reversing the Jandre v. Physicians Reform bestowed the 2013 Outstanding and fees. Insurance Company of Wisconsin decision Organization Award to Wisconsin’s Other positive legal changes for the state’s by the state Supreme Court, which chamber of commerce. WMC earned this business climate that have been signed into threatened to dramatically increase the recognition in large part because of our law since early 2011 include: use of defensive medicine. efforts to restore fairness measures in state law in 2011, and driving subsequent civil • More reasonable interest rates on Among the reforms needed to pass yet in justice reforms. judgments, using the Federal Reserve this legislative session is an asbestos trust prime rate plus one percent rather than transparency bill which would consider the Under Governor Tommy Thompson (R, the fixed 12 percent rate under prior law; role of bankruptcy trusts established to pay 1987-2001), Wisconsin attained a relatively • Adopting a standard for setting out claims. This would reduce liability for balanced civil justice regime that allowed reasonable attorney fees and limiting Wisconsin businesses to the level state law businesses fair treatment under the law. The those fees to no more than three times would normally apportion to them. 2005 session of the Wisconsin Supreme compensatory damages; Court changed that when an activist liberal Wisconsin’s civil justice system has come a majority struck down numerous rule-of-law • Protecting property owners from long way in the past three years. Yet more statutes and tipped the scales of justice against owing trespassers “duty of care,” a legal work remains to be done to provide a fair the business community. WMC, working on obligation imposed on an individual state legal system that affords equal justice to behalf of its membership, was heavily involved requiring adherence to a standard of all, including the state’s business community. in the 2008 Supreme Court election which reasonable care while performing any It is reassuring to know that people outside effectively removed the liberal majority on the acts that could foreseeably harm others; our state are watching the improvements to bench. However, the damage inflicted by the and Wisconsin’s civil justice system with a keen Court lasted until after the conclusion of the • Repealing compensatory and punitive interest. WMC is honored to have been Doyle Administration in 2011. damages as remedies under the recognized for its leadership on these issues, and we are proud to continue fighting the With the election of Governor Scott Wisconsin Fair Employment Act while still preserving the three traditional good fight on behalf of our members. BV Walker and a new GOP legislative majority, Follow Jason on Twitter @JGCulotta Wisconsin’s civil justice climate was swiftly remedies including reinstatement, up balanced again. The second law signed by to two years of back pay and the cost of Governor Walker was a package of reforms legal fees. restoring the rule of law to Wisconsin’s civil On December 13, 2013 justice statutes. These included: Governor Walker signed three additional WMC-supported • Setting the same strict product liability tort reform measures into law: standard used in almost every other state; • Capping punitive damages at $200,000 • Sunshine legislation to or twice compensatory damages; bring transparency to the process of the state hiring • Ending the “risk contribution theory” private-sector attorneys on invented by the 2005 Supreme Court a contingency fee basis; majority, which discarded the traditional proof or direct liability and instead • Lemon law reform that adopted a guilty-until-proven-innocent repeals Wisconsin’s status as the only state requiring test for manufacturers; WMC traveled to Washington DC to receive the 2013 mandatory double damages • Adopting the expert witness testimony Outstanding Organization Award from the U.S. Chamber of of manufacturers; and Commerce Institute of Lawsuit Reform. From left; WMC’s standard used by the federal courts and Jason Culotta, Scott Manley, Kurt Bauer and Jim Pugh. most states; and 16 COME TOGETHER.

LEAVE INSPIRED.

Where else can you meet the minds that are moving manufacturing forward? Nowhere but IMTS 2014. With a focus on success through cooperation, the week will be filled with technology, education, and ideas that we can all benefit from. Join us at McCormick Place Chicago, September 8–13, 2014. Learn more at IMTS.com. Come together. Save the date • Sept. 8–13, 2014 • ImtS.Com Leave your mark.

amt008675 Build 1 Save the Date_8.75x11.25_M.indd 1 12/3/13 4:38 PM Wisconsin Business Voice | 8.75”w x 11.25”h | full bleed | c MYK Channeling Energy Resources to Serve Industry in Wisconsin and Beyond By Reed Hall

n addition to providing financial and technical assistance to One of the nation’s most influential energy associations, the companies to help them grow and succeed in Wisconsin, the Midwest Energy & Research Consortium (M-WERC) located in IWisconsin Economic Development Corporation (WEDC) Milwaukee, is helping to drive the Midwest and the U.S. to be energy develops and deploys programs that help fuel the state’s economy. independent. M-WERC works closely with industry leaders and WEDC’s Business and Industry Development division leverages companies that provide solutions and services tied to serving major industry leadership to accelerate growth and produce high-quality energy, power and control segments. M-WERC, along with many jobs by advancing targeted, high impact economic development Wisconsin companies that provide energy and maintain the state’s initiatives in Wisconsin. Our investment decisions require power grid, is actively promoting new technologies that will result verifiable evidence that a project will offer sustainable, positive in innovative products, new employment opportunities and vibrant economic impact; create or strengthen a unique competitive technology transfer. advantage for Wisconsin; and attract significant co-investment The state’s abundant natural resources have created opportunities to funds. One area where we see great promise is in the state’s energy, excel in a variety of new tech sectors including solar, wind, biofuels power and controls industry. and water. Here are some of Wisconsin’s unique assets within the renewable energy industry: Wisconsin’s Energy, Power and Control Advantages • Wisconsin leads the nation in anaerobic digesters with more than 30 digesters throughout the state—more than any other Electrical machinery and controls manufacturing is Wisconsin’s state in the nation. fastest growing and most competitive industrial sector. Companies operating in this sector are committed to addressing the world’s • In 2013, the American Wind Energy Association ranked energy challenges by continuously adapting to new market demands Wisconsin 18th in total installed wind capacity and 16th in and opportunities. From making effective use of our natural the Nation on their list of states with the most wind energy resources, fossil fuels, biofuels, wind and solar energy to building potential. energy efficiency technologies, Wisconsin companies are employing • More than 140 solar companies in Wisconsin ranging from advanced applications and new products to power the world’s energy manufacturing to contracting to installation are helping to needs. create and implement new technologies that draw upon the More than 900 companies in Wisconsin’s growing energy, power and sun’s energy. control sector employ more than 100,000 people and generate $38 WEDC is assisting energy-related businesses and supporting billion in annual sales. The sector has shown 31.1 percent growth organizations across the state to help maximize their potential from 2008 to 2011. Export growth topped 18.73 percent from 2010 through collaboration and innovation. Wisconsin’s specialized to 2011—compared to a national rate of 12.27 percent. Wisconsin’s workforce, academic and private sector resources, and infrastructure capabilities are broad and widely disbursed and reflect particular provide opportunities for energy companies to succeed and for strength in the areas of generation and transmission; storage and the state to be known as a global leader in energy innovation. A distribution; conversion, control and automation; and efficiency and collaborative approach to leveraging industry leadership through conservation. forward-looking initiatives will advance economic development opportunities in Wisconsin. Wisconsin also possesses the quality and quantity of necessary talent to compete on a global scale. Our highly educated workforce For more information on WEDC investment strategies, visit www. is the foundation for a thriving energy InWisconsin.com. WEDC’s Wisconsin Energy, Power and Control sector. Our industry leadership is apparent industry profile is available at www.InWisconsin.com/energy.BV in the variety of companies fulfilling Reed Hall is Secretary and CEO of the Wisconsin the specific demands of the energy Economic Development Corporation continuum and in the healthy collection of consortia, associations, academic programs, institutions, and energy advancement and research centers located here.

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20 ENERGY wisconsin and the “war on Coal” Where are we on the Battlefield? By Mark Crawford

nergy has always been a critical such as food processing, chemical commodity for Wisconsin manufacturing, plastics, and forest Ebusinesses. Coal, nuclear and natural products, was the highest gas are the state’s three key energy energy-consuming sector sources for base load electricity. Most in the state in 2011 using “Reliable and low-cost of this energy is shipped in from out 582 trillion British Thermal of state. A moratorium currently exists Units (BTUs). Without energy is a key site-selection on constructing new nuclear plants in abundant, competitively factor for companies looking Wisconsin, and if the recently proposed priced energy, Wisconsin EPA regulations on CO2 emissions are cannot be a contender for to relocate or expand.” approved, it will be very tough to build new industrial projects new coal-fired plants. As a result, more that would hire hundreds or thousands of industries are looking at natural gas workers and expand the economy. to fuel their operations. Even though today’s prices are low, natural gas prices Wisconsin Runs on Coal are historically volatile. That leaves wind, About two-thirds of the state’s electricity solar, and other renewable resources, comes from coal. Wisconsin’s electrical which only contribute a very small capacity breakdown for 2011 is: percentage of the daily energy needs of • Coal (62.5%) Wisconsin businesses. • Nuclear (20.7%) “The critical issue for any energy-intensive • Natural gas (9.1%) industry is having a supply of reliable and • Hydroelectric (2.6%) affordable energy that helps meet current • Wind (1.7%) and future demands,” says Gary Gigante, • Wood (1.2%) President and CEO of Waupaca Foundry. • Oil (1.2%) “Therefore the issues that impact the The largest users of electricity in Wisconsin reliability and cost of the energy supply are are foundries, pulp and paper mills and of significant interest to industry. Given food processors—all key contributors to the current situation with fossil fuels, the Wisconsin economy. Industrial rate- particularly coal, industries are concerned payers make up less than one percent of Wisconsin may not be able to develop a rate payers in Wisconsin, yet account for diversified energy plan that can maintain 35 percent of the electricity consumed each Wisconsin's economic competitiveness.” year. This large-scale economic production That’s a huge point. Reliable and low- and job creation is driven by coal. cost energy is a key site-selection factor for companies looking to relocate or The War on Coal expand. This is especially true for big Threatening this relationship, however, are energy consumers, like manufacturing. stricter limits on CO2 emissions proposed Wisconsin's industrial sector, which by the EPA in September 2013 for new includes energy-intensive industries coal-fired plants (1,100 pounds of CO2 21 Wisconsin Business Voice Wisconsin Energy Generation legislative affairs representative for Wisconsin in the Association of American Railroads. “Without the revenues generated from hauling Wind 2% Wood coal, portions of our rail system may be more difficult to maintain.” Hydro 1% 3% Oil 1% Regaining the Wisconsin Advantage Natural Gas Historically, lower-than-average utility rates have given Wisconsin 9% a competitive advantage over other states in the Midwest. In recent years, however, this has changed, and today only one of the twelve Nuclear Midwestern states has higher rates than Wisconsin. There are 21% several reasons for this. Coal 62.5% “Wisconsin embarked on a significant series of investments in utility infrastructure over the previous 10-15 years,” explains Eric Bott, director of environmental and energy policy for WMC. “We invested heavily in renewables in the early 2000s to meet our per megawatt-hour). New regulations for existing coal plants will be 10 percent renewable portfolio standard (RPS). Wisconsin also revealed sometime in 2014. constructed new coal power plants based on anticipated increases in One of the requirements for new coal power plants is the demand, and continues to build massive new transmission systems installation of a carbon capture and storage (or CCS) system. CCS to improve the reliability of the grid.” captures CO2 and pipes it to underground storage reservoirs. “The bottom line is there At this point, Wisconsin This, however, will not work in Wisconsin. was on track to secure a “Wisconsin does not have any of these underground are no economically viable ways better position in terms storage reservoirs,” says Brian H. Potts, an attorney and to replace coal as Wisconsin’s primary of its rates versus those Partner at Foley & Lardner LLP in Madison. “The of other states. Some closest one is in southern Illinois. The DNR estimated source for base-load electricity neighboring states were the cost of installing CCS for We Energies' Oak Creek generation.” also mandating costly power plant would new renewables projects— be about $4.3 billion. The creating a situation where Wisconsin’s rates could stabilize while Did You Know… estimated pipeline cost to rates in neighboring states increased. ship the captured carbon WMC is party to the case “Now, however,” says Bott, “the proposed regulations for carbon dioxide to Illinois for challenging the War on Coal before emissions, on both existing and new coal plants, greatly jeopardize storage was $750 million the U.S. Supreme Court? this outcome. Depending on how these regulations are ultimately of that total cost, which led applied, massive rate increases could result and reliability could be The U.S. Supreme Court has agreed the DNR to conclude CCS threatened.” to review one question: Did EPA is not an economically permissibly determine its regulation feasible control option.” An example of how these effects could cascade is the new source of greenhouse gas emissions from performance standard (NSPS) rule that applies to new fossil fuel- “All of these new new motor vehicles triggered fired electric utility generating units (EGUs). “Although the rule regulatory actions will permitting requirements under the does not apply to any existing EGUs, environmental groups are increase the price of Clean Air Act for stationary sources arguing that modifications to existing coal plants should trigger this electricity, because they will that emit greenhouse gases? rule,” comments Arthur J. Harrington, an attorney with Godfrey & require the construction Kahn in Milwaukee. “Given that our extensive base load power is In other words, the court already of expensive new plants,” dependent upon coal, these sorts of challenges will mean more cost ruled that EPA can regulate GHGs adds Dan Kish, senior for rate payers in the future.” from cars but does that mean they vice president of policy for have the authority to extend that the Washington DC- Alternative Strategies regulation to coal fired utilities? based Institute for Energy Any uncertainties about energy supply make businesses uneasy. Research. Six cases were wrapped into one If regulations make coal too expensive to use, what other energy to be heard by the Court. WMC The proposed regulations sources are available at a reasonable cost? “Although the current is party to American Chemistry would also have negative natural gas boom provides some relief, well-designed energy Council v. EPA, however, the Court impacts on Wisconsin planning and regulation will be critical for mitigating the negative is likely to title the bundled cases rail. Almost two-thirds effects of coal-use reduction,” says Gigante. as Utility Air Regulatory Group v. of the railroad tonnage This approach includes lean strategies, conservation practices, Environmental Protection Agency. coming into Wisconsin is technological improvements to increase energy efficiency, and coal. If coal-fired electrical Oral arguments are scheduled for onsite use of renewable energy, which continues to become more generation is limited, “a Feb. 24, 2014. Stay tuned to WMC’s affordable. website for the latest information. significant portion of our business could go away For example, Ariens Company in Brillion recently replaced its in the next several years,” 45-year-old boiler system with a geothermal heating and cooling says Sam Gratz, a state system. “We always look for the lowest project cost and the smallest 22

Wisconsin Energy Consumption & Rankings increasingly turning to U.S. RANKING UNITS U.S. RANK natural gas, which has a significantly lower Total Consumption 1,789 Trillion BTU 21 Energy Facts emissions profile and is • Consumption per Capita 313 mBTU 24 Two-thirds of Wisconsin in increasingly abundant households use natural gas Total Expenditures $24,356m 20 supply.” Expenditure as % of GDP 9.6% 29 as their primary fuel for With the low cost of Total Net Electrical Generation 6,015 MWh (1,000) 24 home heating. natural gas, there will • be pressure on utilities Coal fuels about 2/3 Wisconsin Energy Consumption to convert their old coal of Wisconsin electrical fleets to natural gas—for generation. Transportation Residential example, We Energies • Four-fifths of coal for 24% 24% has proposed converting Wisconsin comes via rail the Menominee Valley from Wyoming. cogeneration steam/ • electricity plant to natural Hydroelectric and wood Commercial gas. Rail companies are are the largest renewable 20% also looking at hybrid sources of energy. and natural gas engines to Industrial • Renewable accounts 32% power their locomotives. for about 8.4 % of As attractive as natural gas Wisconsin's total electrical carbon footprint, but there are always tradeoffs,” says President & is at the moment, it cannot CEO Daniel T. Ariens. “In this case, the long-term environmental generation (2011). replace coal. Wisconsin • impact of geothermal is minimal, but the installation cost was 50 does not have the pipeline One in 10 Wisconsin percent higher than traditional systems. The tradeoff made sense for infrastructure needed households rely on our long-term vision. Although geothermal is not our major source to convert its coal fleet electricity as their primary of energy, it is a significant producer that is reliable and efficient.” to natural gas. The coal energy source for heating. plants in southeastern and Waupaca Foundry has aggressively targeted energy use to reduce • Wisconsin's industrial its carbon footprint and maintain global competitiveness. Energy- southwestern Wisconsin sector is the highest reduction activities include heat recovery for building/hot water also do not have sufficient heating, energy efficient lighting retrofits and the widespread access to natural gas to energy-consuming sector. use of premium high efficiency motors. Waupaca was among the support conversion— • In 2010, Wisconsin first companies in the U.S. to volunteer for the U.S. Department building that infrastructure produced 438M gallons of Energy's “Better Buildings, Better Plants” program. The goal would be hugely expensive of ethanol, ranking 9th is to reduce industrial energy intensity by 25 percent in 10 years. and difficult to permit. among states. “This effort includes the development of energy use and energy The bottom line is there • Wisconsin households intensity baselines, and the ongoing implementation of an energy are no economically viable management plan to meet the 10-year goal,” says Gigante. ways to replace coal as use 103M BTU per home Wisconsin’s primary annually, about 15% more Staying Competitive source for base-load that the U.S. average. But The ultimate goal for Wisconsin is to stay competitive—not just with electricity generation. lower utility rates result in other states, but other countries as well. “This ‘war on coal’ will make households spending 5% “As always, Wisconsin’s doing business a lot harder for Wisconsin's job creators,” says Bott. biggest challenge is less for energy than the “Manufacturing drives Wisconsin's economy and we are dependent continuing to provide U.S. average. on affordable energy to compete in a global marketplace.” reliable, affordable energy • Industrial ratepayers make There are also huge economic development opportunities for cost- in an environmentally up 0.15% of the electrical competitive states that can ride the “reshoring” wave—companies responsible manner,” says ratepayers in Wisconsin coming back from low-cost countries like China to establish their Skewes. “This means but pay about 22% of the operations in the U.S. or Mexico. Boston Consulting Group recently maintaining a diverse rates. reported that more than one-third of the companies they interviewed mix of fuels, including with offshore operations are considering returning to the U.S. To be coal, as well as operating in contention for these capital investments and new jobs, states must a highly efficient electric be able to deliver low energy prices. For Wisconsin, that means coal system. We must have a must be abundant and affordable. sound but flexible infrastructure to produce and deliver power, but “Coal is a critical element of our diverse fuel mix and helps keep also make smart investments so customers aren’t paying the capital energy prices under control,” says William Skewes, executive director costs of facilities that aren’t giving them the most value. It’s a delicate for the Wisconsin Utilities Association. “However, as increased balance.” BV regulation makes coal more expensive to use, energy providers are Crawford is a Madison-based freelance writer. 23 Wisconsin Business Voice EPA Regulations Threaten Wisconsin’s Job Creation By Ellen Nowak

isconsin is a coal state. drastically reduce the amount of electricity Obama’s proposed rule on carbon emissions Approximately 62 percent of the generated by coal. These rules require on new power plants and the expected rule state’sW electric generating capacity is coal utilities to switch to a different fuel source on existing plants. These rules, promulgated fired. Wisconsin is also a manufacturing (i.e. natural gas), retire plants or build new under Sections 111(b) and (d) of the Clean state. sources of generation. All of these solutions Air Act will impact Wisconsin in two ways. Those two facts are, undeniably, related. are costly to ratepayers. First, they would stop the construction Wisconsin was recently ranked as the fifth Since 2003, Wisconsin utilities have already of any new coal-fired power plant in best state for manufacturing job creation in invested approximately $3 billion in emission Wisconsin. Second, the rule on existing coal the nation. But the multitude of upcoming controls to comply with EPA regulations. plants is expected next June. If it doesn’t Environmental Protection Agency (EPA) Those investments were made with the afford states flexibility on implementation, regulations, particularly the proposed rules assumption the plants being improved give credit to utilities for previously installed regarding carbon emissions, threaten that would be used for the remainder of their controls, or if it requires a control technology ranking. expected lives. These controls are now at risk that is uneconomic, rates for Wisconsin of being obsolete or insufficient to meet the residents will “necessarily skyrocket” as the Coal is a cheap and reliable source of power. newer, stricter regulations, causing utilities President declared during his candidacy. Manufacturers need cheap and reliable to abandon existing investments. But the power to function and prosper. They need I am working to ensure that Wisconsin’s costs to install these controls cannot be voice will be heard. We need to work certainty that the power will be there when abandoned. needed and certainty that prices won’t together to convey Wisconsin’s concerns skyrocket out of control. Manufacturing As a consequence, the EPA regulations could and suggested approaches to the EPA and its connection to the energy and utility result in a double hit to ratepayers. First, they to minimize the impact to Wisconsin systems of Wisconsin is well documented – may be on the hook for past expenses from ratepayers. BV the more the manufacturing sector grows the which they receive absolutely no benefit. Ellen Nowak is a member of better the energy market performs which, in Second, they will be asked to pay for the the Wisconsin Public Service turn, means better security and rates for the expense of replacing that generation or Commission. The views in average consumer. adding even more, costly emission controls. this column are her own and Perhaps the rule that provides the greatest do not represent the views of Over the last several years, the EPA has the Commission. proposed regulations that attempt to threat to Wisconsin electric rates is President

WMC Members Say State Will Outperform U.S. Economy in 2014

The stubbornly weak economic recovery, good and one percent say the state economy rate increases and 55 percent say ACA spiking health care costs and difficulty hiring will weaken. compliance had led to changes in the plans qualified employees are the top concerns When asked their top business concerns, they offer employees. for Wisconsin business leaders heading respondents said the sluggish economic Seventy-six percent of respondents say they into the New Year, according to a survey recovery was number one (33 percent), will pass-on some or all of their higher of 340 WMC member business executives followed by health care (21 percent), health care costs to employees. Specifically, conducted late last year. regulations (18 percent), labor shortage (9 54 percent said they will increase employee Fifty-three percent of employers say the U.S. percent) and taxes (7 percent). contributions and 22 percent said they will economy will see moderate growth during Ninety-three percent said they offer reduce benefits. the first six months of 2014, while 35 percent employer-sponsored health insurance Overall, 54 percent say ACA has had a predict growth will be flat. Ten percent coverage to their employees. Of those, 87 negative impact on their employees, 30 believe growth will be good and just three percent said their costs will increase. Forty- percent say it is too early to tell. Just one percent say the economy will contract. two percent said their premiums will rise percent said ACA’s impact has been positive. Survey respondents are more optimistic between 11-20 percent; 40 percent said rates Despite a seven percent national about the state economy during the first will rise between 1-10 percent. unemployment rate, 60 percent of Wisconsin half of the New Year. Sixty-five percent say Seventy-eight percent of business leaders employers report having trouble hiring the Wisconsin economy will experience blame the federal Patient Protection and employees. Of that number, 69 percent say moderate growth; 31 percent say growth will Affordable Care Act (ACA) for the the reason is a lack of qualified applicants. be flat. Just two percent say growth will be WORKFORCE DEVELOPMENT

Chris Reader WMC Director of Health & Human Resources Policy

Focus on Jobs Brings Results or several years, Wisconsin Similar grants will be awarded throughout manufacturing. The results of this focus have Manufacturers & Commerce has been 2014, and the training they will fund will been unmistakable. In the data released by Fdiscussing an apparent disconnect found bear fruit in the near future. Along with the the U.S. Bureau of Labor Statistics in late in Wisconsin between manufacturing training grants, the Fast Forward program November 2013, Wisconsin’s manufacturing job seekers and the manufacturing jobs includes the development of a labor market job growth of 6,000 new jobs led the nation available. Even when the unemployment information system (LMIS), which is a for October 2013, and Wisconsin was rate was at its high mark, manufacturers modern website to help job seekers and the second highest state in the nation for still struggled to fill open skilled employers connect. manufacturing job growth for the period of positions, such as welders or CNC Additional reforms passed last fall include October 2012 through October 2013. As the machine operators. The reason? For a series of new laws that continue to focus reforms mentioned above all come online, we various contributing factors, the available on developing the Wisconsin workforce. have every expectation that the jobs picture, workforce simply lacked the training and The state invested in youth apprenticeships especially for manufacturing jobs, will only skills needed for modern manufacturing by increasing funding to the Youth continue to improve into the future. jobs. That was compounded by proper Apprenticeship program by $500,000 Going forward, the focus must remain on training becoming difficult and costly to annually. This worthwhile program helps improving the picture for manufacturing obtain. Recognizing this paradox, WMC high school students receive on-the-job jobs along with all sectors of the Wisconsin set out to advance an agenda over the last training and technical education while still economy. As the manufacturing industry couple of years to tackle this issue and help in high school. An additional $500,000 continues to modernize, advance and connect willing workers with training and, was allocated for apprenticeship tuition become increasingly complex, so too must ultimately, jobs. reimbursements, to be awarded in up- the available job training programs improve Working alongside Governor Scott Walker to $1,000 reimbursements to successful and adapt in order to keep our workforce and the Wisconsin Legislature, we have apprentices. These awards will help reduce ready to compete with the world. BV made good progress advancing a number the cost of obtaining an apprenticeship and Follow Chris on Twitter @ReaderWMC of key initiatives to close the skills gap will encourage more individuals to enter the found in the workforce. With a focus on skilled trades. The Governor and lawmakers training, apprenticeships, technical skills and also created the Technical connecting necessary skills with available Excellence Higher Education jobs, real advancements have been made Scholarship. Mirroring the to reduce the skills gap and help people current Academic Excellence get back to work in manufacturing, the Higher Education Scholarship, backbone of our state’s economy. the new scholarship will be In 2013, WMC and lawmakers have awarded to the top high school focused on directing resources where it students who continue their matters most by investing in training and studies at a technical college. apprenticeships. $15 million was allocated This list is certainly not all- for industry-specific training grants through inclusive, but it shows the the newly created Wisconsin Fast Forward strong focus lawmakers have program. The first round of grants, which had on encouraging technical WMC’s Chris Reader, third from right, at a recent bill signing with Governor Walker for Act 57, which created a included those aimed specifically at small skills, apprenticeships and reimbursement for apprenticeship tuition and fees. manufacturers, were awarded late last year. putting people back to work in 25 Wisconsin Business Voice Company News Wisconsin’s Business Climate is Ripe for Expansion Tom Howatt Elected Chairman of WPRI Mayville Engineering Co. is planning Board of Directors to expand five of its plants in Wisconsin, The Wisconsin Policy Research Institute Board resulting in 100 new manufacturing jobs. of Directors elected Tom Howatt as chairman. This is the result of orders from existing Howatt has been a WPRI board member since customers as well as new work the 2006, and is the Wausau Paper Corp. Chairman company has landed. of the Board, where he served as the company’s President and CEO from 2000 – 2011. Howatt Linetec, one the nation’s replaced James Klauser, who served as WPRI chairman since 2006 largest paint and and will continue to serve as a WPRI board member. anodize finishers, built a 30,000-square-foot addition to its anodize facility in Wausau. Super Steel Recognized for Growth and Hiring To support the addition and Milwaukee-based manufacturer, growth of its business, the company is increasing its anodize staff Super Steel, received the Inc. by more than 10 percent. Magazine Hire Power Award in Addison-Clifton, a Brookfield-based company recognition of its growth and specializing in global trade compliance contribution to the American solutions, has expanded its global footprint by people and economy with its establishing a new subsidiary in the port city of continued hiring. The company is ranked #6 among private Ningbo, Zhejiang Province, China. business job creators within the state of Wisconsin. Pictured at left is Ulice Payne, Managing Director of Addison-Clifton, LLC. World Championship Cheese Contest Names First Female Assistant Chief Judge The Sartori Co., a family-owned cheese Masters Gallery Foods, Inc. proudly announced company, announced in December that it Sandy Toney was selected as the new Assistant will embark on a $14 million expansion and Chief Judge for the Wisconsin Cheese Makers renovation project at its plants in Antigo Association. She is the first woman to hold the and Plymouth – a project that is expected position for the World Championship Cheese to create up to 53 new jobs. Contest since it began in 1957. Toney, Vice President of Corporate Quality and Product Advance Announces Manufacturing Award Development for Masters Gallery Foods, has been of Distinction Recipients a licensed cheese grader for close to 20 years. In November, Advance, the economic development program of HNI Appoints New President and Celebrates 50 Years the Green Bay Area in Business Chamber of Commerce, September was a monumental month for HNI announced the award Wisconsin – the appointment of their new recipients of the 2013 President, Chad Tisonik, fell on their 50th Manufacturing Awards anniversary and followed a record-breaking year of Distinction: Ariens Company, Brillion (Large Company of 35 percent growth! Tisonik’s new role as Award); Lindquist Machine Corp, Green Bay (Workforce President is a milestone for the firm, as it marks Development Award); N.E.W. Plastics Corp, Luxemburg the first time HNI Wisconsin will be managed (Medium Company Award); Precision Machine Inc, Algoma by a non-family member of the founder since (Small Company Award); and The Solberg Company, Green Bay the company’s inception in 1963. Chad is the nominating chair (Environmental Sustainability Award). Nominees were judged and immediate past chair of the Wisconsin Safety Council based on company size, operational excellence, financial growth Advisory Board. and community support.

26 Governor Walker Participated in Lakeshore Technical College Apprenticeship Program Tour Gov. Walker and Experience. Bright ideas. Congressman Tom Petri (R-6th District) joined state and local political, education and business leaders in November at the “Kickoff Your Manufacturing Career” event hosted by Vollrath and Lakeshore Technical College (LTC) in Vollrath’s new distribution center. During the presentation, Vollrath President & CEO Paul Bartelt said The Vollrath Company has doubled in size since 2008, which includes the expanded manufacturing facility of P.W. Stoelting in Kiel.

First Annual SkillsUSA Wisconsin Welding Challenge Held in October SkillsUSA held the ‘First Annual SkillsUSA Wisconsin Welding Challenge’ in October. The event was hosted by Advanced Welding Institute in Eagle River, and each of Healthcare reform can be confusing. But at Delta Dental the twelve participating students competed in we’re developing effective plan designs and options to give various manufacturing welding processes as well as a job interview competition. Students you the benefit solutions you’re looking for. Bright ideas lead were awarded over $3,000 in scholarships, to brighter smiles. Learn more at www.deltadentalwi.com. welding helmets and much more. BV

Experience. The Delta Dental Difference.

2014 Wisconsin Business Directories Now Available from WMC

Access to business lists is now easier and less expensive with our lineup of D&B products. The 2014 editions of Harris InfoSource Manufacturing and Business Services Directories are now available for order. These are the same directories our customers have depended on for over 90 years. WMC’s custom list service provides you with reference and prospecting lists to reach your target markets, not only in Wisconsin, but in all states and regions. Contact Mike Shoys to order today, [email protected], (608) 258-3400

27 Wisconsin Business Voice MEMBERSHIP

Pat Simonett, WMC Director of Membership

My First 100 Days y first 100 days as WMC’s new director of membership The annual business savings of $3.16 billion divided evenly across the have been an insightful submersion into an organization 2,840,733 employees in Wisconsin*, equates to $675 per employee. MI apparently knew relatively little about six months ago. During For example, a Wisconsin employer with 50 full time equivalent the process of pursuing the position, I quickly learned more about employees (FTEs) has an estimated annual savings for the business the dramatic impact WMC has made to the business climate of $33,750, thanks to reforms passed, defended or blocked by in Wisconsin and more specifically, the legislation WMC has WMC’s efforts. worked to pass, defend and block throughout its 103-year history. So let me close by saying this, thank you for your membership! It’s Some of that legislation has helped propel Wisconsin into the top only with you as an investor in WMC that we were able to make this 20, according to several respected rankings. The other key takeaways happen. And know that we are executing our plan on your behalf to from my initial interviews were the deep conviction and passion of make sure 2014 is an even better year for your business! BV

the staff and board to make WMC’s mission of making Wisconsin *According to 2012 U.S. Department of Labor statistics of Wisconsin’s workforce. the best state in the country to do business. Fast-forward three months… I’ve had the great privilege to speak with many members, board members and soon-to-be members. Conversations have been wide-ranging and feedback has been energizing to say the least. Members and most soon-to-be members are aware of the impact WMC has made. They are equally passionate about the work we are doing on their behalf at the Capitol. Internally at WMC, the positive feedback coupled with the hard- working culture and belief in the mission is the fuel that drives our efforts to grow our presence in all corners of the state. Our goal in 2014 is to exceed 3,900 member companies (we currently have nearly 3,500.) In an effort to show our members the value we bring to the table, I set forth with a goal to quantify what WMC does for a business’ bottom line annually. The exercise allowed us to us illustrate the return on investment we create for Wisconsin businesses. (See the following page). WMC is… • 1 Company • 37 Dedicated Employees • 3,500 Members Governor Walker with WMC’s membership team during a recent visit • $3.16 Billion in positive impact to business in Wisconsin to the WMC office.

28 Return on Investment 2013 WMC Saves Businesses Money! WMC IS YOUR 10,000 0 EMPLOYEES 0 ,0 Annual Savings 0 LEADING BUSINESS 5 ,7 5,000 6 $ EMPLOYEES ADVOCATE Per Employee* = $675 0 0 ,0 Our team of five professional 1,000 75 EMPLOYEES ,3 lobbyists have expertise in every $3 750 00 policy area confronting employers, EMPLOYEES ,0 75 500 $6 making WMC the leading voice for EMPLOYEES 0 25 250 06, businesses at the Wisconsin Capitol. 100 EMPLOYEES $5 00 50 EMPLOYEES 7,5 10 EMPLOYEES 33 Lawmakers and state agency EMPLOYEES $ ,750 $168 officials alike look to WMC 7,500 ,750 $6 to understand how laws and $6,750 $33 regulations will impact businesses – we put you and your business’s Total Annual Savings = $3.16 Billion interests at the center of policymaking at the Capitol and key state agencies. WMC’S ADVOCACY SAVES YOUR BUSINESS MONEY! NOBODY WORKS Fought to Freeze Property Taxes PASSED 2011 AB 40 ...... $1.06B HARDER FOR Defeated Global Warming Annual Energy Tax Hike DEFEATED 2009 AB 649 ...... $700M BUSINESS Fought for Personal Income Tax Cut PASSED 2013 AB 40 ...... $327M Maintained Property Tax Exemption for Machinery & Equipment PASSED S. 70.11 (27) (b) ...... $254.3M In addition to five full-time 2011 Act 32 ...... lobbyists, WMC has a team of Capped Monthly Energy Bill Taxes PASSED $156M attorneys on retainer with expertise Enacted Manufacturing & Agricultural Tax Credit PASSED 2011 AB 40...... $128.7M in tax law, environmental law, Passed Sales Tax Exemption for Electricity in Manufacturing PASSED 2003 AB 507 ...... $107M transportation and employment regulation. During the 2013 Dedicated Property Tax Relief PASSED 2013 Act 46 ...... $100M legislative session, WMC spent Capital Gains Exclusions and Deferrals PASSED 2011 Act 32 ...... $99.2M more than 8,300 hours lobbying Unemployment Tax and Insurance Reforms PASSED 2013 SB 200 & AB 40 ...... $86M policymakers to achieve key business victories in the areas of Personal Property Tax Exemption for Computers PASSED S. 70.11 (39) ...... $76M regulatory reform, legal reform and Single Sales Factor Apportionment for Corporate Taxes PASSED 2003 SB 197 ...... $45M tax reform. Our efforts are saving 2011 Act 1 ...... your business money and improving Tax Deduction for Health Savings Accounts PASSED $21.2M your bottom line. Reduced Magnitude of Air Permit Fees PASSED 2013 Act 20 ...... $4.5M ABOUT WMC OTHER KEY BUSINESS SAVINGS Founded in 1911, Wisconsin 2011/12 2011 2010 2007 Manufacturers & Commerce (WMC) WMC won a national WMC supported Governor WMC implemented an WMC led the effort to award in 2013 for its Walker’s reforms to award-winning advocacy defeat a payroll tax is the state’s chamber of commerce efforts to enact reforms collective bargaining campaign to defeat a $15 that would have cost an and largest business association against lawsuit abuse, laws for government billion global warming average of $2,600 per representing more than 3,500 which is estimated to cost workers that have saved energy mandate that employee as part of a Wisconsin $4.8 billion taxpayers roughly $2 was expected to cost government run healthcare employers of every size and from per year. billion statewide. businesses an average of proposal. every sector of the economy. $1,834 per year. *Based on total Wisconsin workforce of 2,840,733, the 2012 monthly average employment according to the U.S. Department of Labor.

501 East Washington Avenue, Madison, WI 53703 | 608.258.3400 | www.wmc.org | WisconsinMC | WMC501 | @WisconsinMC WMC Board Member Predictions: 2014

Daniel T. Ariens John B. Torinus Jr. President & CEO Chairman Ariens Company Serigraph Inc. Brillion West Bend

I believe we are on the long slow road to recovery. Barring a government shutdown in early 2014 The State of Wisconsin will do better than our over the debt limit, 2014 should be another year of surrounding state partners because we have a slow but steady growth. There won’t be fast growth formula for state governance designed to build because the fed will step in with higher interest confidence in the free markets. Having our costs rates whenever there is a real uptick in GDP and/ under control in the state and a reasonable tax or job growth. That will moderate the upside. strategy in line with policy direction, we will grow Positives for the economy will be the sluggish but relative to those states that do not have alignment. steady job growth, less downside risk in Europe, Manufacturers will hire in 2014 provided we can increased consumer confidence and the willingness find people with the necessary skills. to buy big ticket items, the slowdown in job shifts to Asia and continued containment of health cost inflation in the private sector. Gary Gigante The negatives are a dysfunctional Congress, more President & CEO distractions on health care reform and higher taxes. Waupaca Foundry Inc. The positives should out-weigh the negatives. Waupaca Scott A. Mayer We expect to see moderate growth with GDP at 2.5 percent. Waupaca sales revenue will increase President by about 5 percent when compared to 2013, QPS Employment Group mostly driven by the strong automotive market. Brookfield The commercial truck and agriculture markets will be flat and construction will remain down. QPS is positioned to have a solid year in 2014. We For our business, the second half of the year will think the unemployment rate will remain high; be stronger than the first. My biggest concern however, more jobs will be added next year. The continues to be number of new and unrealistic labor market will tighten as quality candidates regulations coming out of Washington. accept positions and companies will need to work on recruiting passive or already employed workers. The only factor that remains unknown is how healthcare reform will affect the economy.

30 A Partnership Built for Members in Wisconsin MADE IN WISCONSIN

Kimberly Clark As the freeze of a typical Wisconsin winter keeps its hold upon us there is one particular, very recognizable, Wisconsin-made product every Wisconsinite will soon be turning to in order to stop their sniffles, and that is a box of Kleenex. Consisting 3120 Riverside Ave of 58,000 employees in 37 countries, Kimberly-Clark’s global team is passionate about providing people Marinette, WI 54143 in more than 175 countries with essentials for a better life by adding convenience to daily routines (715) 735- 6644 with some of the worlds most recognized products. In the U.S., they manufacture in 16 states where they produce well-known brands such as Huggies, Scott Paper Towels, WypAll wipers, Kotex, Poise and Year Established: 1870 Depends, and have a substantial presence in Wisconsin where their North American operations are Number of Employees: 58,000 headquartered. The next time you reach for a paper towel to clean up a spill or a clean diaper for your Worldwide; 4,008 in Wisconsin infant you can be proud there is a good chance those indispensable products were made right here in www.kimberly-clark.com Wisconsin!

Hampel Almost every Wisconsin citizen has seen one of Wisconsin’s many farms peppered with Calf-Tels, but did you know that those Calf-Tels are made in Wisconsin? Located in Germantown, Hampel is the Midwest's leading thermoformer and began serving the agriculture industry in 1981 with the introduction of the Calf-Tel calf hutch, and has since grown to be the world’s number one choice for calf housing. Hampel’s Animal Care segment is the world’s leading provider of calf housing solutions, providing calf care products including Calf-Tel as well W194 N11551 McCormick Drive as calf raising consultancy, serving domestic and international dairy markets with distribution in over 25 countries. Prior to Calf-Tel, calf housing was most commonly constructed out of wood. In time, wood panels Germantown, WI 53022 breakdown, deteriorate and become a breeding ground for bacteria, resulting in the spread of disease to the (262) 255-4540 calves. For nearly 30 years, dairymen throughout the world have turned to the experts at Calf-Tel for insight Year Established: 1976 into proper calf management techniques. With an estimated 2 million calves raised in Calf-Tel housing worldwide each year, more calves are raised in Calf-Tels than in any other manufactured housing. Number of Employees: 150 www.hampelcorp.com

Waupaca Foundry, Inc. Waupaca Foundry has a reputation as solid as the castings they create. Capable of shipping 1.5 million 1955 Brunner Drive tons of castings per year, they are the largest producer of gray, ductile, austempered ductile and Waupaca, WI 54981 compacted graphite iron castings in the world. Their castings are produced for global markets including more than 400 customers in the passenger car and light truck, commercial vehicle, off-highway (715) 258-6611 and industrial sectors. Typical automotive castings include brake rotors, brake calipers and anchors, Year Established: 1955 differential cases and carriers, engine bedplates and flywheels, crankshafts and more. Commercial Number of Employees: 3,700 vehicle castings include brake drums and discs. Agricultural and construction castings include tractor Worldwide; 2,377 in Wisconsin engine and transmission components, agriculture implements, combine parts, and turf care parts. In fact, there are more than 75 Waupaca Foundry castings on a John Deere tractor and every vehicle www.waupacafoundry.com Toyota made in the U.S. has braking component castings made by Waupaca Foundry. EPA’s Climate Regulations will Cool the Economy, Not the Planet By Nicolas Loris

he Environmental Protection Agency’s greenhouse cost of energy increases the cost of production across most of the gas regulations for both new and existing power plants economy and those adverse economic effects ripple throughout the willT impose a massive, bureaucratic energy tax devoid of any economy. meaningful environmental benefit. A new report from The Heritage Foundation analyzed the effects of Before we get into the costs, we first have to ask why the federal a 20-year phase-out of coal power, and the results are economically government is regulating carbon dioxide (CO2) and other devastating. By the end of 2023, job losses reach nearly 600,000. greenhouse gas emissions (GHGs) in the first place. Unlike other America’s manufacturing base will lose 270,000 employees. A family regulated pollutants, CO2 emissions have no direct impact on of four’s annual income drops more than $1,200 per year, and its human health. But the EPA concluded that manmade GHGs’ total income falls by nearly $24,400 over the 20-year time period. warming effect would create more floods, hurricanes, droughts, and If the news wasn’t grim enough, the federal government’s climate other natural disasters and thus adversely affect human health and regulations will inflict a lot of economic pain for no noticeable public welfare. impact on global temperatures. Even if climate change were a Proponents of the regulations contend that 97 dire threat, unilaterally reducing our greenhouse gas percent of the climate literature agrees emission would barely make a dent on global that manmade emissions are causing “The argument is whether human emissions and thus have no impact on warming and thus the debate climate. Developing nations like India and is over. While a near-universal activity is the primary driver of climate China would have to play ball in order to consensus exists that manmade change and the magnitude of climate have any significant reduction in global emissions have a warming effect, emissions. But those countries are not that is not the point of controversy. change created by greenhouse gas going to slow economic growth to solve The argument is whether human activity emissions.” a theoretic problem when their populations is the primary driver of climate change and the face far more pressing environmental problems and magnitude of climate change created by GHGs. when their citizens are trapped in grinding poverty and lack access to And that is a debate worth having. Available climate data simply do reliable electricity. not show that the earth is heading toward calamitous warming with Congress needs to step up and prohibit the federal government from consequences like Manhattan under water. Take a look at the climate regulating greenhouse gas emissions because the economic realities models that the EPA relied on to promulgate these regulations. of the EPA’s proposals are much more dangerous than the climate Those models projected a 0.3 degree Celsius warming over the realities we’re facing today. BV past 17 years, when in reality no warming occurred (while CO2 An economist specializing in energy and emissions have increased). Over the past two years, 16 experiments environmental issues, Nicolas Loris is the Heritage published in peer-reviewed literature found that the equilibrium Foundation’s Herbert and Joyce Morgan Fellow. climate sensitivity (the effect that a doubling of carbon dioxide in the atmosphere would have) is much lower than projected by the models backed by the EPA. Observational data does not indicate natural disasters have worsened, either. Climatologist and professor at the University of Colorado Dr. Roger Pielke testified earlier this year saying “It is misleading WMC hosted more than 400 and just plain incorrect to claim that disasters people for the 2013 State associated with hurricanes, tornadoes, floods or of Wisconsin Business event droughts have increased on climate timescales last fall. The annual event either in the U.S. or globally.” provided unique insights into Despite questions about the underlying the economic health and future science, EPA is trudging forward with its war well-being of our great Badger on coal and American families and businesses State. Featured speakers are the number one casualties. The loss of included David Azerrad of the coal as a dependable, affordable energy source Heritage Foundation, Wisconsin spells higher prices for electricity and forces CEOs and Governor Walker. consumers to pay more and use less. The higher

33 Wisconsin Business Voice WSC recently held its annual Worker’s Compensation Law Symposium featuring attorney Charles Palmer, managing partner at Michael Best & Friedrich’s Waukesha’s office. During the symposium Chuck updated Wisconsin employers on the complex world of worker’s compensation. I asked him to share with you one of the highlights from his presentation regarding safety audits. − Janie Ritter, Director of Wisconsin Safety Council

Are Your Corporate Environmental Safety and Health Audits a Roadmap For Government Regulators? By Charles Palmer, Michael Best & Friedrich LLP

ost businesses engage in some form of the company, the employer engaged in an by OSHA as a roadmap to find hazards in the of self-inspection or audit of safety analysis of combustible dust exposure at its first place. Mpractices. Often the worker’s compensation other plants. Recommendations insurance carrier also performs periodic OSHA demanded the analysis be disclosed The lessons learned from these three cases are: audits. Recently, the question has arisen during a second OSHA inspection two years more often whether government regulators later. While there are many articles discussing the have a right of access to voluntary safety Grinnell case, based on the victory in Grede, and health self-audits. Three recent cases The company argued the analysis was subject to there is less risk that OSHA can successfully provide an outline of the issues involved attorney-client privilege, and was attorney work demand audits at the beginning of an with this question. product prepared in anticipation of litigation. inspection in Wisconsin. A federal judge ordered the report be disclosed. • Solis v. Grinnell Reinsurance He ruled it was not prepared in anticipation An insurance company’s audit of its insured (Northern District of Illinois) of litigation, because the first OSHA case had should be subject to the same protections as In this case where two teenage boys died in a ended by the time the report was prepared. The an insured’s own self-audits, but that case grain bin, OSHA subpoenaed historical safety judge also ruled that the company’s general has not yet been argued in Wisconsin. audits that had been performed by an insurance counsel was not engaged in providing legal • General counsel and other company- company. The federal judge ordered the audits advice when he directed the analysis to be done. employed attorneys should not assume to be disclosed rejecting the argument that an The judge concluded that the general counsel their involvement in audits will protect OSHA policy letter prohibited OSHA from added no legal advice or recommendation to the results. Consideration should be given seeking voluntary self-audits. That policy memo the report and that he was merely engaged in to engaging outside counsel to direct the stated in relevant part as follows: giving business advice. audits, and in doing so, outside counsel a. OSHA will not routinely request voluntary Solis v. Grede should actually provide advice related to the self-audit reports at the initiation of an (Western District of Wisconsin) audit. • inspection. OSHA will not use such reports Earlier this year OSHA subpoenaed a If the audit can be prepared in connection as a means of identifying hazards upon company’s self-audits at two separate with ongoing or threatened litigation, or which to focus inspection activity. Wisconsin plants early in the inspections. After based on the status of the company as a b. However, if the agency has an independent the company refused to disclose the audits, target of investigation, connecting the basis to believe that a specific safety or OSHA brought an enforcement action in purpose of the audit to that targeting health hazard warranting investigation federal court in Madison. may increase the chances of protecting its exists, OSHA may exercise its authority to content. A motion was presented on behalf of the obtain the relevant portions of voluntary • company asking the court to reject the Legal counsel should be consulted regarding self-audit reports relating to the hazard. subpoenas. It was argued that by preparing the design and handling of voluntary “Self-audit” means a systematic, documented, the policy memo (discussed in the Grinnell self-audits, and such audits should not be and objective review by or for an employer of its case above) and publishing it, OSHA created disclosed to others, including government operations and practices related to meeting the a constitutionally protected right of privacy investigators, without consulting requirements of the Occupational Safety and against government intrusion. experienced legal counsel. BV Health Act. Attorney Charles Palmer, OSHA’s subpoenas were rejected by the court Michael Best & Friedrich LLP, The Illinois judge ruled that the policy memo until OSHA could actually independently was not binding, and that it did not apply to is a managing partner in identify hazards, and then only the portions Michael Best’s Waukesha office protect the insurer’s audits from disclosure. of self-audits related to those independently and is part of the firm’s Solis v. Milk Specialty Products identified hazards would need to be disclosed. manufacturing and energy (Eastern District of Wisconsin) As a practical matter, the holding of the judge teams. The employer had been cited by OSHA at one required OSHA to first conduct an inspection, of its Wisconsin plants for alleged combustible then identify hazards, before asking for audit Follow WSC on Twitter @WISafetyCouncil dust hazards. Directed by the general counsel reports. The reports themselves cannot be used 34 2014 Safety Training Chapter of January - June 2014 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.

MADISON AREA SAFETY March 20 WISCONSIN DELLS AREA FOX VALLEY/GREEN BAY AREA OSHA Construction Breakfast: OSHA Update TRAINING February 18 February 13 April 14-16 Annual Food Processors Safety Conference/Expo Coaching the Lift Truck Operator, Train-the- January 13-16 Instructor Development Course: First Aid/ Trainer Fundamentals of Industrial Hygiene (FIH) ebruary Adult CPR/AED F 19 Process Safety Management Boot Camp March 3-6 January 21 May 14 OSHA 30-Hour Voluntary Compliance for OSHA Construction Breakfast: Electrical pril OSHA Construction Breakfast: Workplace A 28-30 General Industry Safety Attitudes 72nd Annual Safety & Health Conference/Expo March 5 January 27 • Coaching the Lift Truck Operator, Train- May 19-22 the-Trainer Confined Space, Train-the-Trainer MSHA/OSHA 8-Hour Refresher Safety Training Methods (STM) • Effective Team Safety Lockout/Tagout, Train-the-Trainer February 7 June 17 • Ergonomics: Managing for Results June 24 OSHA Construction Breakfast: Carbon Hazardous Communication, Train-the- • Incident Investigation: Root Cause Analysis Monoxide Safety Incident Investigation: A Root Cause Analysis Trainer • Electrical Safe Work Practices Compliance February 11 MILWAUKEE AREA SAFETY • Using Direct Reading Instruments to Assess WAUSAU/STEVENS POINT/ Creating a World Class Safety Culture Chemical, Noise & Heat Exposures MARSHFIELD AREA TRAINING • How to Create an Effective Workplace February 24 Violence Prevention & Intervention March 27 MSHA/OSHA 8-Hour Refresher Program (Part II) January 14 Job Safety Analysis March 18 MSHA/OSHA 8-Hour Refresher • Crisis Management Communication • Leadership through Understanding People, May 6-9 RCRA Compliance for Hazardous Waste May 22 Generators Overview Behaviors & Workplace Demands OSHA 30-Hour Voluntary Compliance Course Supervisor Development: Safety & Health for General Industry DOT Hazmat Transportation Refresher Fundamentals April 28-29 OSHA 10-Hour Voluntary Compliance EAU CLAIRE AREA Courses for General Industry & Construction February 17 www.wisafetycouncil.org MSHA/OSHA 8-Hour Refresher

72nd Annual Wisconsin Safety & Health Conference & Exposition

www.wisafetycouncil.org

April 28-30, 2014 Kalahari Resort & Convention Center, Wisconsin Dells 2013 Honoring Manufacturing Excellencewards in Wisconsin Winners will be announced at the Awards BanquetA at The Pfister Hotel February 27, 2014. MOTY Nominees for 2013

Small (0-99 Employees) Precision Machine, Inc. Sign Effectz, Inc. *Superior Crane Corporation Algoma Milwaukee Waukesha Realityworks, Inc. Solaris, Inc. *Tailored Label Products, Inc. Eau Claire West Allis Menomonee Falls Renard’s Cheese and Deli Steelwind Industries, Inc. Visual Impressions, Inc. Sturgeon Bay Oak Creek Milwaukee Medium (100-299 Employees) Allied Plastics, Inc. N.E.W. Plastics Corp *Waukesha Metal Products Kenosha Luxemburg Sussex Automation Components, Inc. Saco Polymers/NWP Inc. Winsert, Inc. Middleton Sheboygan Marinette Badger Alloys, Inc. *Schuette Metals Xten Industries LLC Milwaukee Rothschild Kenosha *Empire Screen Printing, Inc. Onalaska large (300-750 Employees) *Alto-Shaam, Inc. *KHS USA, Inc. *PendaForm Menomonee Falls Waukesha Portage EMTEQ Inc. *Masters Gallery Foods, Inc. Super Steel LLC New Berlin Plymouth Milwaukee

Mega (751+ Employees) *Alliance Laundry Systems LLC Frito-Lay, Inc. *Mercury Marine Ripon Beloit Fond du Lac Enerpac GE's Waukesha gas engines MGS Mfg. Group, Inc. Columbus Waukesha Germantown EVCO Plastics Grede Holdings LLC *Plexus Corp. DeForest Menomonee Falls Neenah

*These companies are also entered into the Workforce Development Grand Award category. www.wimoty.com

The annual awards competition is sponsored by: Follow WMC on Channel WMC501

Sen. Alberta Darling (R-8th District): Education and Workforce Development

Lt. Governor Kleefisch: Wisconsin Fast Forward

WMC’s Jim Morgan: A Video for Wisconsin Chamber of Commerce Executives

Speaker Robin Vos (R-Rochester): Legislative Priorities

U.S. Chamber’s Doug Loon: On Wisconsin Business Voice: Interview with Governor Scott Walker “Unintimidated” Federal Issues

Atty. Chuck Palmer with WSC’s Janie Ritter: Worker’s Compensation

he Wisconsin Business World program wishes to thank the remarkable volunteers who devote their time and energy to working with the smart and talented BW high school students each summer. GoingT beyond their role as mentors, these Company Advisors help ensure every student feels comfortable when they arrive at camp – and empowered when they leave. Advisors make the sacrifice to be away from their families and jobs for nearly a week each June so the students of Business World can have an experience they will remember for a lifetime. If you see any of these selfless Wisconsinites please give them a pat on the back, and a big THANK YOU on behalf of the next generation of Wisconsin business leaders:

Megan Barlow, WMC, Madison Michelle Morrow, WPS Health Insurance, Eileen Baus, TAKKT, Milwaukee Madison Rob Bermke, Georgia-Pacific, Green Bay Erin Ott, Teacher, Madison Bob Denor, Ariens Co., Brillion Katy Pettersen, WMC, Madison David Hovde, ATC, De Pere Jack Pfister, SCORE, Madison David Leef, ITU, Inc., New Berlin Jeff Raymond, EnvisionIT, Madison Andy Lemorande, Hospital Sisters Health Jim Schulz, Ad Venture, Waupaca System (HSHS), Green Bay Andy Sefcik, Colony Brands, Inc., Monroe Traci Licari, M3 Insurance Solutions, Samantha Sepic, WMC, Madison Waukesha Carol White, Greater Brookfield Area Mike Michalski, Belmark, Inc., De Pere Chamber of Commerce Brian Mirr, Wisconsin Safety Council, Scott Wiedenhoeft, Engine Power, Madison Oconomowoc Jim Morgan, WMC Foundation, Madison

Business World is a program of the WMC Foundation and has helped educate and inspire over 14,000 young adults since it began in 1982! www.wibusinessworld.org @WiBusinessWorld Wisconsin-Business-World GRASSROOTS

Jim Pugh WMC Director of Public Relations & Issue Management

Business Leaders Need to Reach Out Now Breaking the Election-Year Inertia is Critical

ark your calendar for Tuesday, labor unions and environmentalists will be But we all know our work is not done. So January 14. Look up the phone pressuring lawmakers to adopt policies that pick up the phone. Send the email. Write Mnumber for your legislators and Governor hurt your business. the letter. Inertia sets-in on lawmakers when Scott Walker, and jot down a few notes. As we enter the last stages of the legislative elections are looming, and we need to apply January 14 is when Wisconsin’s legislature session, the WMC team will be calling on a little torque to those at the Capitol to resumes its 2013-14 session. So when 8:30 you at critical times to contact lawmakers. advance the business agenda. You can break a.m. arrives, pick up the phone and start When you receive those alerts, it’s important the inertia. dialing for business reforms. that you take immediate action. You can find your lawmaker’s contact If you really want to have an impact, draft a Imagine the impact it would have if 4,000 information on WMC’s website – just go to letter on your company letterhead and mail it business executives all called the Capitol Government Issues & Policy at the top of on Friday, January 10 to your lawmakers and on the same day urging lawmakers to keep the homepage, then click Find Your Elected the governor. On the 14th, every business pushing for pro-business reforms. It’s true; Officials. The Governor’s office phone executive who is reading this magazine Wisconsin’s business climate has improved number is (608) 266-1212. BV should pick-up the phone and call your under Governor Walker’s leadership in legislator and the Governor to urge them partnership with the business community to keep pushing hard to make Wisconsin and pro-growth legislative majorities in the the most competitive state in the nation. last couple of years. Rest assured, the personal injury lawyers,

Here are some key messages and talking points to use when writing or calling your legislators.

• Lawmakers listen to business leaders from their home • Remind them we cannot sit on our laurels. We can’t districts. Use that clout to have an impact that will spike the ball at the 30 yard line. Our business climate is make your business more profitable, and our state more improving and we need to keep up the momentum. competitive for all of our families. • Urge them to support passage of pro-growth WMC- • Thank Governor Walker and lawmakers for working to endorsed bills that are currently in committee or stuck promote tax cuts, regulation relief and lawsuit reform over between the houses. Visit www.wmc.org/billtracking for the last few years. The progress has been dramatic and is more information, or call any one of WMC’s government much appreciated. relations specialists at (608) 258-3400 for details on how some of the pending issues may affect your company.

38 Legislative Priorities WMC asked Wisconsin’s legislative leaders what their priorities are for the legislative session when it resumes in January. This is what they told us…

CHRIS LARSON (D-Milwaukee) SCOTT FITZGERALD (R-Juneau) Senate Minority Leader Senate Majority Leader Our priorities should include taking action on Responsible budgeting has kept Wisconsin’s Wisconsin Jobs Now Package that included books balanced and in the black, so at this point critical job creation legislation introduced by I do not expect there will be a need for a budget Democrats in the spring of 2013. Wisconsin’s repair bill in Spring 2014. On top of the billion lagging economy will not turn around if we dollars in tax relief we have provided taxpayers continue down the same road. For that reason, we need to take over the past two legislative sessions, we have decisive action by reforming the scandal-ridden WEDC to finally witnessed sustained increases in tax revenue due to private-sector put Wisconsin job creation on the right track. economic growth. The shot in the arm we have attempted to give the state’s business environment has had a profound impact on Reinvesting in current and future generations of Wisconsin workers the way we are able to save, invest, and return taxpayer dollars. The by enacting Higher Ed, Lower Debt legislation to put more money spring legislative session will serve as a period to address pieces of into the hands of Wisconsin’s middle-class families and refunding legislation that have yet to receive a vote on the senate floor, while the $800 million cut to K-12 education in Wisconsin that has put holding true to the Republican philosophies of lower taxes, limited immense strain on local communities across Wisconsin; government and economic growth. And finally, accepting the federal funding to strengthen BadgerCare for Wisconsin’s working families will alleviate pressure on ROBIN VOS (R-Rochester) Wisconsin’s small businesses and healthcare providers, all while Speaker of the Assembly giving Wisconsin’s families the needed economic security to invest in their local communities and purchase local goods. The 2013-2014 legislative session has been successful thus far. Republicans have cut income and property taxes, froze UW tuition PETER BARCA (D-Kenosha) and expanded the state’s worker training and Assembly Minority Leader education programs. Our top priority has been The Wisconsin legislature spent far too much creating the best environment possible for time this year on divisive bills that did not ad- private sector job creation and we’ll continue to work on that goal dress what should be our top priorities to secure this spring. economic stability for Wisconsin – education, Right the Rules: We will continue to “Right the Rules” in worker training and getting people back to Wisconsin by eliminating unnecessary and burdensome work quickly. The keys to creating success for regulations that hurt businesses and don’t protect the environment. those priorities are: Education Reform: Assembly Republicans will take-up additional Education reform emphasizing achievement and accountability education reforms. We will consider accountability measures for for all schools that receive taxpayer funding and fair funding for all schools receiving public funding as well as recommendations schools. from the Speaker’s Task Force on Rural Schools and the Select Investing in workforce development with such bills as Workforce Committee on Common Core. Growth Grants and Skills Enhancement Grants. Fighting Heroin Abuse: The Assembly will vote on legislation Focus on passing economic development bills that are aggressive, authored by Representative John Nygren (R-Marinette) to fight creative and will put people back to work quickly, such as heroin abuse and its horrible effects on Wisconsin families. Entrepreneurial Tax Credit Access, Made in America and Assembly Republicans will continue to address the critical issues renewable energy, cost-reduction and infrastructure initiatives. facing Wisconsin families, schools and businesses. Other economic development priorities include Refundable Angel Credits and creating a Nanotechnology Hub at UW-Extension.

39 Wisconsin Business Voice CHAMBER CORNER

ByEnergy Philip C. Fritsche Issues Looming for Wisconsin Business

nergy is a subject all chambers of commerce should be • Gas and Electric Coordination – Gas and electric utility prepared to address in the next couple of years as their companies within regions of the country are encouraged to Econstituent business members are going to be greatly affected by work together in grid expansion and utility access plans in rising energy costs. Changes already scheduled to take effect, and developing areas. More gas-fired power plants will be built still more that are being proposed, will spike the price of energy in to replace coal-fired plants. Siting of both the plants and the our state in the coming years. close access to gas lines is critical in efforts to minimize costs Patricia Kampling, Chairman, Chairman, President and CEO of in building new plants. • Alliant Energy, recently outlined five issues facing power generation Flat and Declining Sales – Greater efficiencies in power utilities in the Midwest. These issues should be a concern for usage from residential and commercial customers reduces the everyone representing Wisconsin business: demand on the grid (lower sales for utilities) due to conscious conservation efforts. A second factor causing a decline in • Carbon Emission Management – The federal government, power usage in Wisconsin within the last several years is the mostly through the EPA and arbitrary rules and regulations, loss of major manufacturers, such as the GM plant that closed is creating carbon and other fossil fuel emission reduction in Janesville. This is an economic development issue as much as mandates that will force the closure of many coal-powered a utility issue. electric generation power plants (among the least expensive methods of generating electricity) and bring costly upgrades to The bottom line is despite aggressive efforts by many Wisconsin others, all at the cost of the utility’s customers. utilities to keep energy costs as a positive reason to either maintain a business in Wisconsin or relocate a business to Wisconsin, • Cyber Security – All electric power generation and grid government regulations put increasingly upward pressure on costs companies around the nation have been receiving confidential that will have to be paid by rate payers in the years ahead. briefings from the U.S. Department of Homeland Security. These briefings focus on the vulnerability of the U.S. power What can business people or chambers of commerce do to help? system and the steps that must be taken to ensure a more Contact members of the Wisconsin Congressional delegation and secure grid. Efforts to make the power grid more secure will let them know that Midwestern states are going to be hit hard by need significant investment, again at the cost of the utility’s unlegislated EPA mandates, unfunded security requirements and customers. unfair Net Metering price rates, as well as a languishing national • Net Metering – Utilities are required to buy back “excess” economy. BV power at set rates from private power generation facilities such Philip C. Fritsche is Executive Director of the as privately held windmills, solar arrays or water-powered Beaver Dam Chamber of Commerce and President generators. In many cases, the set rates pay more to the private of the Wisconsin Chamber of Commerce Executives party than the per kilowatt hour rates charged to the public by board of directors. a utility. Follow WCCE @WIChamberExecs

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.

Thanks to these Foundation Sponsors 40 Bank changes creating a negative experience? Make a POSITIVE CHANGE.

When your business bank changes your account numbers and the people serving you, then moves local decision making hundreds of miles from Wisconsin, entrusting it to people who know nothing about you or your business, you’re not working with the bank you chose in the first place. If you’ve got to deal with change, why not make a change for the better? First Business offers the services and resources of a large bank, but with decision making and a board of directors right here in Wisconsin. We’ll make changing to First Business easy. Call us today to learn more.

(L-R standing) Corey Chambas, President & CEO of First Business Financial Services, Inc. Joan Burke, President of First Business Trust & Investments Dave Vetta, President & CEO of First Business Bank - Milwaukee Chuck Batson, President & CEO of First Business Capital Corp. (L-R seated) Mickey Noone, President of First Business Bank - Northeast Mark Meloy, President & CEO of First Business Bank - Madison

YOUR SUCCESS COMES FIRST. Member FDIC

www.firstbusiness.com Treasury Management : Trust & Investments : Private Banking : Specialized Lending : Equipment Finance : Commercial Lending 608-238-8008 WIPFLI-8.5x11.indd 1 12/9/2013 4:23:59 PM