Official magazine of ’s Chamber April 2016: Issue 18

Entrepreneurship Wisconsin is Full of Good Ideas Page 22-25

Inside: Wisconsin Manufacturer of the Year Award Winners p. 4 Lt. Gov. Kleefisch on Talent Attraction p. 16 Right to Work One Year Later p. 34

ELECTION DAY IS APRIL 5 A sincere THANK YOU to our clients and staff.

First Business is proud to have received an outstanding 97% in our annual client satisfaction survey. This phenomenal score is a testament to the wonderful relationships that exist between our staff and clients.

We’d like to thank our clients for this great compliment, and our staff who works hard each day to go above and beyond in delivering outstanding client satisfaction.

These results are based on a survey conducted by an independent third party expert.

Member FDIC YOUR SUCCESS COMES FIRST.

BUSINESS BANKING | PRIVATE WEALTH | SPECIALTY FINANCE WISCONSIN In this issue… 2 Wisconsin Needs an Image Makeover BUSINESS VOICE KURT R. BAUER, WMC 4 Wisconsin Manufacturer of the Year Award From the Editor Winners As a membership organization Judicial Philosophy Matters 5 SCOTT MANLEY, WMC and state chamber of commerce, Wisconsin Manufacturers & Commerce works on behalf of 6 TheJIM MORGAN, Numbers WMC Speak FOUNDATION for Themselves companies across the state. Our members employ more 8 Honoring the Strike Zone than 500,000 hardworking RICK ESENBERG, WISCONSIN INSTITUTE FOR LEGAL REFORM Wisconsinites and give millions of dollars back to Clean Power Plan: Where Are We Now? their communities through 10 LUCAS VEBBER, WMC philanthropy and volunteering activities. Progress on State Tax Reform 12 JASON CULOTTA, WMC We help educate lawmakers on issues that affect a business’ 14 Employer Responsibilities to Protect Temporary ability to operate free from Workers over-regulation and we work JANIE RITTER, WMC/WISCONSIN SAFETY COUNCIL hard to ensure elected officials understand the important role 16 FabricatingLT. GOVERNOR Wisconsin’s REBECCA KLEEFISCHTalent Pipeline the business community plays in the economy of the Badger State. 21 KloppenburgJIM PUGH, WMC Dangerous ISSUES MOBILIZATION for Wisconsin COUNCIL, Families We are the voice of Wisconsin’s business community and that INC. voice gets louder as our membership grows. Throughout this edition of the magazine you will find testimonials from people and companies who believe in what WMC does. If you are not 22-25 WISCONSIN IS already a member, we hope you will read what these people have to say, find value in what we do and consider joining the FULL OF GREAT IDEAS organization. (and has the entrepreneurs to prove it) WMC is positively pro-business. Together, we can make Wisconsin the most competitive state in the nation. 26 MyJUSTICE Closing REBECCA Argument BRADLEY, WISCONSIN SUPREME COURT

31 Business World: Real World Experience, Life- STEVEChanging BENZSCHAWEL, Results WMC/WISCONSIN BUSINESS WORLD Editor, Wisconsin Business Voice [email protected] 32 Wisconsin Needs both Tech Certificates and Four- CATHYYear Degrees SANDEEN, UW COLLEGES & UW EXTENSION

34 RightCHRIS to READER, Work One WMC Year Later

40 BattingRICK SCHLESINGER, 1000 for Wisconsin MILWAUKEE BREWERS BASEBALL CLUB

Wisconsin Business Voice is published quarterly by Wisconsin Manufacturers & Commerce. WMC is Wisconsin’s chamber of commerce, manufacturers’ association, 42 Wisconsin’sSEN. RINGHAND Workforce (D-EVANSVILLE) Challenges AND REP. PETRYK and safety council representing businesses of all sizes and from every sector of the (R-ELEVA) economy. WMC's 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 44 Chamber Corner: Tax on Sales by Non-Profit Katy Pettersen, Editor ([email protected]) ANNOrganizations SMITH, SUN PRAIRIE CHAMBER OF COMMERCE Jane Sutter, Designer ([email protected]) Wisconsin Needs an Image Makeover Kurt R. Bauer, WMC President/CEO

erception is reality. In fact, On the bright side, Wisconsin received very high marks for perception is such a powerful quality of life, including access to outdoor recreation, public Psense that it can create reality. safety and affordability, which somewhat mitigates the lower Therein lies the problem and pay perception. opportunity for Wisconsin. The bottom line is that Wisconsin needs to craft an image Wisconsinites are known as that accurately reflects and promotes our high quality of life “Cheeseheads.” There is a barn, and economic diversity. silo and the phrase “America’s Changing people’s long-held and reinforced perceptions isn’t Dairyland” on our license plates. easy, but it is possible. In 2000, Marsha Lindsay of the award- We put a cow, corncob and a wheel winning Madison advertising firm of Lindsay, Stone & Briggs, of cheese on our state quarter. We Inc. wrote a white paper called The Brand Called Wisconsin. also put on that quarter our state “Nations, states and regions all over the world are now motto; forward. But is our agricultural-dominated state image effectively engaging in proactive brand marketing to win moving us in that direction? coveted high-tech jobs and the brain power and venture The question came to mind when a nationwide perception capital that fuel them,” Lindsay wrote in the paper’s executive survey about Wisconsin showed that most people from summary. “Not only must Wisconsin catch up to this around the U.S. believe our state has limited and low-paying competition, but it must find a relevant differentiating niche job opportunities. Based on how we market ourselves, they or position in which it can lead.” also unsurprisingly think the jobs we do have largely revolve She cited the United Kingdom’s “Cool Britannia” (a takeoff of around agriculture. Rule Britannia) and the Pure Michigan campaigns as just two In Wisconsin, we are clearly proud of our agricultural past, examples (you have to wonder what the Flint water crisis is present and future and we should be. It is part of our doing to that latter brand). culture and a major economic driver. Agriculture “Wisconsin needs As if Lindsay had just read the recent WMC also helps create a pastoral image of our state, survey, she also wrote 16 years ago that which benefits another important economic to craft an image that “Wisconsin must lessen the impact of driver, tourism. accurately reflects and existing negative brand stereotypes as But Wisconsin has a far more diverse promotes our high quality well as preempt the competition from economy with good paying jobs available in positioning us to their advantage, which many sectors. We also have beautiful, safe and of life and economic puts us in an even more difficult position to strong communities with good schools and great diversity.” control our economic destiny.” sports, entertainment and recreation options. Lindsey also warned a brand isn’t just a slogan. Still, I Unfortunately, the word isn’t getting out and that is a problem can’t help but think a good place for Wisconsin to start is by for a state with a workforce shortage that is only projected to updating our license plate design with a more contemporary get worse unless we can attract talent from around the county tagline that highlights Wisconsin’s broader quality of life and and the rest of the world. (See p. 6) economic opportunities. How big is Wisconsin’s perception problem? Well, the survey, I would also like to see Wisconsin adopt a far more distinctive which was commissioned by the WMC Foundation, showed state flag that doesn’t follow 29 other states by using a the most important attributes in selecting a state to live in variation of their state coat of arms (In 2001, the North are job opportunity, crime/public safety and wage/salary American Vexillological Association ranked Wisconsin’s flag expectations. Wisconsin doesn’t score well in two out of the 65th worst out of 72 U.S. and Canadian states, provinces and three. territories). The survey also revealed that many people from outside the As Lindsay’s 2000 white paper and the 2015 WMC state see Wisconsin as intolerant. That’s not good, period. perception survey shows, Wisconsin has had an image But it is particularly bad if you are trying to retain and recruit problem for a long time. Fixing it takes money, research and minorities and members of the large millennial generation time. But first we need agreement that something needs to be who see themselves as very open-minded. Millennials also done and a plan of action if we are going to retain and attract tend to prefer urban to rural settings and our agrarian image investment and talent in the future. BV may give them pause. Follow Kurt on Twitter @Kurt_R_Bauer 2 ______Jay Timmons, President and Governor Scott Walker CEO of National Association addressed the sold-out of Manufacturers, was a guest crowd. speaker. 28th Annual Wisconsin Manufacturer of the Year Award Winners

Grand Award Winners

SmallCategory Medium Category Large Category Mega Category Grand Award Grand Award Grand Award Grand Award

Felss Rotaform LLC Teel Plastics, Inc. Alto-Shaam, Inc. Generac Power Systems, Inc New Berlin Baraboo Menomonee Falls Waukesha

Special Awards for Company Culture

Amerequip Corporation Masters Gallery Foods, Inc. Keil Plymouth

This award competition is sponsored by

www.wimoty.com SUPREME COURT

Scott Manley WMC Senior Vice President of Government Relations

Judicial Philosophy Matters n Wisconsin, and throughout the U.S., liberal special interests are Indeed, our democratic process and the Legislative Branch itself increasingly utilizing appellate courts to advance policy objectives are trivialized when courts choose to defy the will of voters and Ithey cannot achieve by working through the legislative process. overturn laws simply because a handful of judges happen to Republicans currently control 69 of 99 state legislative bodies, 31 disagree with them. of 50 governorships, and hold both houses of the U.S. Congress. As Yet this is precisely what is at stake in Wisconsin’s Supreme Court a result, labor unions, radical environmental groups and other left- election on April 5. wing organizations have hit major roadblocks in state and federal On one end of the spectrum is Justice Rebecca Bradley, who has legislative chambers. pledged to exercise judicial restraint and adhere to an originalist These groups have therefore turned to the courts as their last hope philosophy. to impose a liberal agenda. On the far opposite end is Judge JoAnne Kloppenburg who, in so We’ve seen this strategy at work right here in Wisconsin. Left- many words, pledged to repeal Gov. Walker’s collective bargaining of-center groups have attempted to invalidate numerous reforms, reforms from the bench when she ran unsuccessfully five years ago. including Act 10, voter ID, regulatory reform and Right to Work. The differences between these two candidates couldn’t be starker. The best antidote against these types of collateral legal attacks on Voters will have the power to elect a Wisconsin Supreme Court our reform agenda is a Wisconsin Supreme Court that adheres to Justice who will call legal “balls and strikes” and who views the the rule of law and reflects a judicial philosophy consistent with the judiciary as having a very limited role in reviewing and interpreting originalist theory of interpretation. the law. Or, voters can choose a justice who will happily “change the The late Justice Antonin Scalia saw the dangers of judicial activism rules of the game” by using the judiciary to twist and contort the perhaps better than anyone. He often criticized courts for taking on law to conform to her own political views and agenda. what he termed a “Mr. Fix-it Mentality” where justices incorrectly Even after his untimely death, Justice Scalia continues to remind viewed their mission to “Make Everything Come Out Right” us through his brilliant writings that the proper role of courts is instead of interpreting the law. He scolded his fellow justices not to remake laws or substitute the views of judges for those of for their “interpretive jiggery-pokery” in the King v. Burwell lawmakers. He wrote in one of his last great dissents that “ours is a Obamacare case, noting that context “is a tool for understanding government of laws and not of men. That means we are governed the terms of the law, not an excuse for rewriting them.” by the terms of our laws, not by the un-enacted will of our In that same case, he noted the U.S. Constitution “made Congress, lawmakers.” not this Court, responsible for both making laws and mending Judicial philosophy matters. We have an opportunity on April 5 to them. This Court holds only the judicial power – the power to ensure we are governed by laws, not the whim of judicial activism. pronounce the law as Congress has enacted it… Our task is to BV apply the text, not to improve upon it.” Follow Scott on Twitter @ManleyWMC In his dissent in Hamdi v. Rumsfeld, Scalia warned the judiciary “saps the vitality of government by the people” and weakens the legislative branch when courts exceed their modest role of statutory interpretation.

5 Wisconsin Business Voice DEMOGRAPHICS

Jim Morgan WMC Foundation President

The Numbers Speak For Themselves omeone who is born today will be 18 years old in 18 years. Between 2010 and 2040, 95 Likewise, in 65 years, they will be 65 years old. percent of the population growth SI will save you the trouble of overthinking this one; it is as simple as in Wisconsin is in the over 65 it looks! category. The critical working age, 25-64, is actually DOWN 10,000 The WMC Foundation has invited Demographer and Futurist Ken people. We have to attract talent Gronbach to Wisconsin twice to speak at WMC-hosted events to the Badger State. including The Future Wisconsin Economic Summit, Workforce Talent Conference and Business Day in Madison. Each program Innovative ideas are finally being explored. resulted in several requests for him to return and there have been The University of Wisconsin System is looking at internships for multiple inquiries for recordings of his presentation. It is, quite all students. This would be an incredible commitment by both the simply, very good. UW System and the business community. Out-of-state students Gronbach is a numbers man. And he is continuously surprised by attending UW schools are retained in Wisconsin at a 15 percent our lack of interest in counting people. Case in point: rate, but those participating in an internship are retained at 65 percent. Many private colleges are on the same track. In the 80s, 90s and early 2000s, companies selling products to American consumers were doing great. Motorcycles, blue jeans, We are implementing Academic and Career Plans for grades 6-12 shoes, automobiles, you name it. Then suddenly, the spigot shut to begin in 2017. Every student will have better knowledge of off. The same marketing campaign was no longer creating the careers and the jobs available, especially in Wisconsin. same level of sales. Routine orders were becoming non-existent. The articulation agreements between high schools and the Companies searched for an explanation of what caused this Wisconsin Technical College System are growing every day. That seismic shift. Blame was placed, jobs were lost and confusion direct connection between learning and earning is also keeping reigned. We looked at everything… except at the number of workers in Wisconsin. people. We have finally begun to understand we have to sell Wisconsin. The Baby Boomer generation was, at the time, the largest in Those of us who have spent a lifetime here know the incredible history – 78 million people born between 1945 and 1965. quality of life we experience. And many who have visited have had They moved through their peak purchasing years during that a taste of it. Now we have to tell our story. timeframe. They were then followed by Generation X (1965- As we move forward and attempt to attract talent to the state, a few 85) with 69 million people. Nine million purchasers began to questions to ponder: disappear. • How welcoming are we to minorities entering a state that is Simply put, counting people matters. more than 80 percent Caucasian? The good news is Generation Y (1985-2005) is bigger than the • How does the workplace look to women who now make up Boomers – 86 million. The bad news is, not in Wisconsin. Our 60 percent of our colleges? fertility rate has been below 1.9 since 1975. Roughly speaking, we aren’t doing our part. • What are we doing to attract Millennials? They want different things, both in and outside of the workplace. Are As a result, our age distribution going forward does not bode well we on their radar? for the workforce in Wisconsin. • What is our national perception? What is our headline Wisconsin Population, 2010 Census and 2040 Projection, by Age Groups news? What is our state brand? Age Group Census 2010 Projected 2040 Number Change Percent Change • How does each and every one of us talk about the Badger 0 - 4 358,443 373,940 15,497 4.3% State? Do we complain about the weather, politics, economy 5 - 17 981,049 1,007,370 26,321 2.7% and taxes? Or do we celebrate our natural resources, quality 18 - 24 549,256 563,995 14,739 2.7% of life, educational opportunities and career options? 25 - 44 1,447,360 1,493,595 46,235 3.2% 45 - 64 1,573,564 1,517,370 -56,194 -3.6% As we count the number of people, the clock is ticking for 65 - 84 658,809 1,251,765 592,956 90.0% Wisconsin’s future. The numbers don’t lie, so we must take action… 85 & over 118,505 283,600 165,095 139.3% now! BV TOTAL 5,686,986 6,491,635 804,649 14.1% Follow Jim on Twitter @JimMorgan1960 Source: University of Wisconsin Applied Population Lab 6 www.atcllc.com

MOVING ENERGY INTO THE FUTURE

Electricity powers our world. Each day, light switches are flipped, computers are powered up and factories hum with activity. Electricity enables automation, convenience, productivity and opportunity.

At American Transmission Co., we’re hard at work keeping the lights on and planning today for how the electric grid of our future will deliver reliable, affordable and environmentally responsible power.

Read more at www.atcllc.com/PowerForward

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 for your support throughout 2016 Honoring the Strike Zone By Rick Esenberg

often say races for the Wisconsin Supreme Court are as Judges who practice judicial restraint – call them conservatives if important as those for governor. For better or worse, the Court you wish – are more likely to regard statutory and constitutional Imakes some extremely important decisions about our common life, text as authoritative and to engage the text, structure and history occasionally overruling the democratic process. of the written law in a way that seeks to determine what it means Of course, this doesn’t mean judicial races are just about politics rather than to dismiss it as “ambiguous” and proceed to resolve in the same way as elections for Governor or the legislature. It is cases based on what a majority believes to be the “best” policy. They important to recognize “conservative” and “liberal” does not mean are more likely to believe the law should be read in accordance quite the same thing for judges as it does for legislators. Judges are with its plain meaning. If that does not resolve the case, they constrained by the law (where it is clear) and, depending upon the attempt to ascertain what the law would have meant to those who judge, by the methods lawyers use to read the law. adopted it. These methods, championed by the late Justice Antonin Scalia, are often referred to as “textualism” and “originalism.” But neither is it fair to say judging is just about technical competence and a mechanical search for the law. Our Supreme In judicial election, all candidates will claim to be little Scalias. Court generally takes only those cases where the law is unsettled None will ever admit that he or she is an “activist” or even a and the outcome unclear. Like it or not, those cases will be decided “liberal.” Even where the labels fit, they don’t win elections. differently depending on the philosophy of the judges who sit on Evaluating judicial candidates requires a careful examination of them. his or her record and legal philosophy. The effort is worthwhile. During his confirmation hearing, U.S. You should Supreme Court Chief Justice John Roberts vote for the Court as if Following Gov. Walker’s historic reforms in 2011, famously told the Senate Judiciary opponents of the Walker administration poured Committee that your business depended substantial resources into the attempt by Madison “[j]udges are like umpires. Umpires don't on it. lawyer JoAnne Kloppenburg to unseat incumbent make the rules; they apply them…” He had a point, but as I Justice David Prosser. The campaign was all about have written for Wisconsin Business Voice before, I prefer the story stopping the Walker agenda. Prosser won by an eyelash. of three umpires (who I imagine seated at a bar) who said very This year, having been elected to the Court of Appeals in Madison, different things about how they call balls and strikes. Kloppenburg is running again and, again, the appeal is expressly The first umpire claimed to call them as he sees them. The second political. The problem with Justice Rebecca Bradley, we are told, is said he calls them as they are. The third – who must have been a that she is Gov. Walker’s appointee. law professor – went one step further. “They are,” he said, “nothing If past is prologue, one vote on the Court can make all the until I call them.” difference on issues critical to the future of our state. I have said it In attempting to understand judicial restraint, the first umpire has before and I’ll say it again. You should vote for the Court as if your it right. Just as there are many pitches on which an umpire must business depended on it. BV make a judgment call, even judges practicing judicial restraint may Rick Esenberg is the founder and current President differ on what the law means. But just as not all pitches can be and General Counsel of the Wisconsin Institute for either strikes or balls depending upon the whim of the umpire, the Law & Liberty constitution and statutes cannot mean anything and ought not to be made to mean whatever we think is a good idea this morning. A good judge, like a good umpire, needs to believe there is a strike zone and that it must be honored.

8 AA BETTERBETTER WAYWAY TOTO BUILD!BUILD! Known for ingenuity, drive, and dedication, CCI has yet to meet a challenge too great or complicated for our team. Ensure an exceptional outcome for your project and contact our team of experts today!

BELOIT | MILWAUKEE | WILLIAMS BAY | CCIWI.COM

Third Annual Wisconsin Business Achievement Award

Nominations are due August 15, 2016

EacH yEar, ovEr 10,000 WiSconSin buSinESSES WorK WitH FocuS on EnErgy to USE ENERGY SMARTER Since 2012, Focus on Energy has brought in nearly $1 billion worth of net economic benefits to Wisconsin.

Saving Energy and Money for Wisconsin

visit focusonenergy.com/business to Find MorE WayS to SavE and control your EnErgy uSE ENERGY

Lucas Vebber WMC Director of Environmental & Energy Policy

Clean Power Plan Where Are We Now? mmediately after the Clean Power Plan (CPP) was published the CPP until the litigation made its way completely through the last October, a majority of states, along with dozens of industry courts. Igroups throughout the country, filed lawsuits to block it. Wisconsin Following the Supreme Court’s stay, Gov. Walker issued executive has been a key player in this litigation with Attorney General Brad order #186: prohibiting any state agency from working on a Schimel and his team at the Wisconsin Department of Justice CPP compliance plan until the stay is lifted. This important helping lead the litigation. action ensures our state will not needlessly expend resources or Recently, the U.S. Supreme Court granted a rare nationwide stay implement costly changes to our energy infrastructure before the blocking implementation of the CPP until those lawsuits are CPP has had its full day in court. complete and Gov. Walker issued an executive order forbidding state agencies from working on CPP compliance until that stay is What’s Coming Up Next? lifted. The next step is oral arguments in June, followed by a ruling on the merits from the D.C. Circuit Court of Appeals, likely this With the potential for devastating economic impacts nationally, fall. After that, the losing party is likely to appeal to the Supreme and especially here in Wisconsin, business owners are right to be Court. Assuming the Supreme Court takes such an appeal, a final concerned about the CPP. The rule requires states to dramatically decision would likely come late in 2017 or perhaps even not until reduce CO2 output from power plants. Here in Wisconsin we are 2018. facing a reduction of more than 40 percent. As those reductions are implemented, electricity rates will rise by an estimated 20 percent Outside of the courts, a lot can happen between now and the or more, inflicting serious harm to our state’s economy. end of the legal action. This fall’s elections will be tremendously important in the fight against this costly regulation. A bipartisan Making sense of what has happened in these lawsuits so far, and majority in Congress already passed legislation intended to roll knowing what to look for over the next year, will help eliminate back the CPP, only to see that legislation vetoed by President uncertainty as Wisconsin businesses prepare for the future. Obama last December. Depending on the outcome of the elections What’s Happened So Far? this fall, it is possible such legislation could come back early next Immediately after the lawsuits were filed, the coalition opposing year. If a Republican wins the White House, there is also likely to the CPP requested a stay of the rule while that litigation moved be an administrative attempt to pull back the CPP altogether. through the courts. The D.C. Circuit Court of Appeals denied that Conclusion request in January, but granted an expedited litigation schedule There has been a lot of legal back-and-forth over the past few with oral arguments to occur months, and there will be a lot more over the next year. The good this coming June. For more information on news is that thanks to the Supreme Court’s stay and Gov. Walker’s the Clean Power Plan and The rejection of the stay executive action, Wisconsin does not have to worry that state request was appealed to regulators will rush to implement these drastic and costly changes the devastating impacts it the U.S. Supreme Court. to our energy infrastructure. BV would have in Wisconsin, In February this year, in a Follow Lucas on Twitter @VebberWMC watch Episodes 21, 22 & tremendous win for CPP 23 of WMC’s Two Minute opponents, the Supreme Court granted a nationwide Drill at www.wmc.org/2min stay on implementation of

10 1966 - 2016

Since 1966, it has been our privilege and good fortune to work with many Wisconsin-based manufacturers, helping them achieve amazing heights. Our clients have been local, regional, national and global — and we’re proud that so many have stayed with kinziegreen year after year. What’s our secret? It’s our mission to provide better thinking and better results for every client, every project. Let’s talk.

Providing fast and flexible custom staffing solutions in this demanding business climate isn’t easy. But at QPS, we’ve never been one to shy away from hard work. Branding • Strategy • Research • Web • Print • Video • Audio Light Industrial to Skilled 715.845.4251 | [email protected] | kinziegreen.com/betterthinking Trades, Office/Clerical to Professional, we take pride in going the extra mile to match the right candidate with the right job. It’s one Calling all young professionals more reason why companies are so passionate about NEWaukee’s 2016 partnering with QPS.

is proud to sponsor April 23–30 www.ypweek.com TAXES

Jason Culotta WMC Senior Director of Government Relations

Progress on State Tax Reform he end of the 2015-16 legislative session brought some helpful estimated tax payments now tax reforms. Here is a quick review of those items and others differ from the federal ones. thatT will be up for consideration next January. Matching federal law would Long discussed since their adoption by Gov. Doyle in 2009 were simplify reporting for businesses. efforts to federalize the economic substance statute (adopted a MTC Audits. Were it not for recent budget concerns, the year before the similar federal provision) and improve the onerous Legislature would likely have approved the cessation of “production of documents” standard. Helpful changes to both Wisconsin’s participation in the Multi-State Tax Commission were signed into law March 1 by Gov. Walker. The leadership of (MTC) this year. Businesses are disappointed with MTC auditors Sen. Howard Marklein (R-Spring Green) and Rep. John Macco who are often unfamiliar with our law and not as accurate as state (R-Ledgeview) was crucial in getting these reforms across the auditors. The time is coming to end the state’s participation in this finish line. contingent fee audit arrangement, which sells taxpayer information By the time this column has gone to print, the state Senate should gleaned from audits in one state to others. have concurred in several other tax-related initiatives that cleared NAICS Manufacturing Assessment. Wisconsin has long assessed the Assembly in February. One is invalidating the state sales tax on manufacturing property but uses the old SIC (Standard Industrial the amount of federal excise tax paid when purchasing new heavy Classification) codes, last revised in 1987, rather than the trucks and truck trailers. Retroactively repealing this “tax on a tax” contemporary NAICS (North American Industry Classification back to its September 2014 imposition date will provide relief for System) which was most recently issued in 2012. Assessments many businesses. Other legislation would allow local chambers of utilizing the new code would be a welcome improvement upon the commerce to continue to promote tourism in their communities current practice. and boost the threshold under which most non-profits (like Statistical Sampling. Similar to polling in election campaigns, chambers) are exempt from sales tax. (read more on that in the statistical sampling is used to accurately conduct sales and use Chamber Corner column on page 44) tax audits. While the state does some sampling, significant My previous column in Wisconsin Business Voice featured how improvements should allow for smaller sample sizes and shorten Wisconsin can remove itself from the “Top Ten” list of highest audits without diminishing accuracy. taxed states. Here are a range of proposals the Legislature Unclaimed Property. Our unclaimed property law is in need of could consider in 2017 to ease tax compliance for the business updating. Aside from confidentiality concerns and no current community: ability to appeal a determination, adopting a prohibition on third Federal Due Dates Alignment. Because of a federal change party audits of unclaimed property along with a uniform statute adopted last summer (P.L. 114-41), the due dates for Wisconsin of limitations for the various classes of this property will provide partnership and C-corporation tax returns as well as corporate greater fairness to taxpayers and simplify compliance. Underpayment Interest Rate. Wisconsin currently features the greatest disparity in interest rates between the non-delinquent amount a taxpayer pays into the state (12 percent) and refunds paid out by the state (3 percent). Legislation to lower the “underpayment rate” by one-half point annually was introduced this session but did not advance. Reducing the 12 percent underpayment figure would allow for treating taxpayers fairly. These changes would have modest fiscal impact yet their adoption would improve tax compliance and fairness for businesses. WMC will advocate for these and other similar reforms when the 2017 session commences. BV Follow Jason on Twitter @JGCulotta

Taxpayer Fairness Act signed into law as 2015 Act 218. 12 π SHIPPING SUPPLY SPECIALISTS

2 WISCONSIN LOCATIONS OFFER:

• Over 31,000 Products IN STOCK

• Order by 6 PM for SAME DAY SHIPPING

• FREIGHT SAVINGS and FAST DELIVERY

COMPLETE CATALOG 1-800-295-5510 uline.com

“WMC works hard to improve the Tuesday, May 31 overall business climate in our state Monona Terrace Community & Convention Center and has a vital impact on the overall growth and success of Wisconsin’s Madison manufacturing industry. Mercury Marine is aligned with WMC on many • Tracks for specific policy areas issues, from workforce development and safety to legislative issues that • Keynote presentation from the U.S. Chamber impact Wisconsin’s manufacturing of Commerce industry.” John Pfeifer, President • Business Friend of the Environment Mercury Marine Awards presentation www.wmc.org/policyconference Not a member? Join today. www.wmc.org/ membership

13 Wisconsin Business Voice SAFETY EXCELLENCE

Janie Ritter Director of Wisconsin Safety Council

Employer Responsibilities to Protect Temporary Workers ho are temporary workers? They are perhaps the fastest personnel to place an increased growing sector in the American economy. Temporary focus on temporary worker workersW are workers assigned to host employers, paid by a staffing safety during their compliance firm, to perform work for a host employer on a temporary basis for inspections. one year or less. The use of temporary workers has been on the rise Injury data specific to temporary workers is not available because over the past four years – the American Staffing Association’s 2015 host employers are required to record injuries of temporary workers third quarter survey showed there were 3.32 million temporary on their organization’s OSHA 300 log, but are not required to workers in the U.S. identify whether the injured worker is temporary or permanent. With the infusion of temporary workers into the workforce comes As an employer, implementing rules and regulations will ensure new issues employers need to plan for and manage. Too often in your temporary workers are provided a safe working environment. the news it’s reported a temporary worker has suffered a fatal injury Here are a few things employers need to know: during the first days on a job – in 2014, over 4,000 temp workers were killed on the job. • The host employer, staffing agency and employee must be held accountable for safe working practices and environment. Employers play a significant role in the well-being of the temporary • The key is communication between the agency and host employer workers they hire. Temporary workers are entitled to the same to ensure the necessary protections are provided. protections under the Occupational Safety and Health Act of 1970 (the OSH Act) as all other covered workers. There is a distinction • Employers must assign occupational safety and health between the terms “temporary employees” and “independent responsibilities and define the scope of work in the contract. contractors”: temporary employees are individuals a host employer • Staffing agencies must take responsibility to review the progress receives from a staffing firm, while independent contractors are and condition of their employees and environment periodically. found mostly in the construction industry who are hired to perform • Host employers must treat temporary workers like any other their specialized set of skills. Independent contractors are hired to workers in terms of training and safety and health protections perform without explicit orders from the employer on how to carry and must provide training in the language their temporary out the task. workers understand. A few areas to focus on include:  Under the “Temporary Worker Initiative” launched in 2013, Supply required Personal Protective Equipment (PPE) OSHA seeks to bring attention to the issue of safety for temporary  Train and fully discuss work duties workers and change how worker safety is handled by both  Provide compliance and risk safety training host employers and staffing firms. The initiative directs its field  Arrange training on recognizing safety hazards • If any changes occur in the temporary employee’s work environment, the staffing agency should be notified. • Always treat any report of unsafe acts or conditions, no matter “My employees’ safety is a top concern for me. the source, with due diligence. The trainings offered through WMC’s • If a loss does occur, all responsible parties should be required to Wisconsin Safety Council arms our people complete a separate incident investigation and there should be with the valuable safety information they can a discussion on implementation of controls to stop this incident share with the rest of our team.” from happening again. Todd Teske, Chairman, President and CEO There should be a clear understanding of each party’s role in Briggs & Stratton Corporation protecting temporary employees. OSHA recommends the temporary staffing agency and the host employer detail their respective responsibilities for compliance with applicable OSHA standards in their contract. Including such terms in a contract Not a member? Join today. will ensure each party complies with all relevant regulatory www.wmc.org/membership requirements, thereby avoiding confusion regarding the employer's obligations. BV 14 Follow WSC on Twitter @WISafetyCouncil Annual Safety & Health Conference and Expo May 16-18, 2016 • Kalahari Resort, Wisconsin Dells

Seminars Keynote Speakers Networking Tuesday Wednesday Ross Bernstein Steve Benzschawel New Safety Products The Champion's Generational Code Differences at Work Professional Development Building Relationships Helping Everyone Courses through Life Lessons Work Safely Across the of Integrity and Generations Accountability from the Sports World Track for Young Safety to the Business World Professionals Visit www.wisafetycouncil.org for more information and to register.

Chapter of 2016 Wisconsin Safety Council The Wisconsin Safety Council, a division of WMC, is Wisconsin's afety raining leading provider of safety training and programming. WSC offers S T training throughout the year at locations across the state. www.wisafetycouncil.org

MILWAUKEE AREA April 18-21 September 12 WISCONSIN DELLS AREA FOX VALLEY/GREEN BAY SAFETY TRAINING Safety Training Methods (STM) Confined Space, Train-the- SAFETY TRAINING AREA SAFETY TRAINING Trainer (AM) une May 3 May 16-18 September 20 J 16 Lockout/Tagout, Train-the- OSHA Construction Breakfast 74th Annual Safety & Health Incident Investigation: A Root Job Safety Analysis ( JSA) Trainer (PM) “Preplanning for Job Safety” Conference/Expo Cause Analysis August 30 September 26-29 August 1-3 May 16 September 21 Creating a World Class Safety Safety Management Techniques Instructor Development Course • Coaching the Lift Truck Operator, Safety Metrics – Stop Focusing Culture (SMT) (IDC): First Aid/CPE/AED Train-the-Trainer on Failure & Celebrate Success October 19 ctober • Effective Team Safety (AM) August 9 O 4 Coaching the Lift Truck RCRA Compliance for • Incident Investigation: Root Cause Coaching the Emergency Vehicle Analysis Focus on Competency (PM) Operator, Train-the-Trainer Hazardous Waste Generators Operator (CEVO): Ambulance • Electrical Safety Compliance-NFPA September 29 December 5-8 Overview (AM) 70E and Fire Effective Team Safety OSHA 30-Hour Voluntary DOT Hazmat Transportation • Process Safety Management (PSM) August 15-18 Compliance for General Refresher (PM) • Confined Space Entry Training for October 11 Industry Principles of Occupational Safety Entrants/Attendants/Supervisors October 10 Safety Inspections & Health (POSH) • Values-Based Safety Process Conducting Effective Safety November 2-3 MADISON AREA August 22-25 • Energizing Your Ergonomics Training Training OSHA 10-Hour Voluntary SAFETY TRAINING OSHA 30-Hour Voluntary • Workplace Violence Prevention October 18 Programs Compliance for General Compliance for General Industry April 5 Industry Coaching the Lift Truck • Leadership through Learning Safety Metrics – Stop Focusing Operator, Train-the-Trainer • Respiratory Protection 101 WAUSAU AREA SAFETY on Failure & Celebrate Success September 7 November 7 May 16-17 TRAINING (AM) Ergonomics: Managing for • OSHA 10-Hour Voluntary Results Supervisor Development: Safety Focus on Competency (PM) Compliance Course for General August 10 & Health Fundamentals Industry pril Coaching the Lift Truck A 11 December 12 Operator, Train-the-Trainer Safety Inspections Effective Team Safety Fabricating Wisconsin’s Talent Pipeline By Lt. Governor Rebecca Kleefisch

s I travel Wisconsin, I hear one concern from employers more than any other: “I need more qualified people to join myA workforce.” We talk constantly about the “skills gap” between current workers and current jobs – we’re investing in technical colleges and making 4-year college more affordable to fill that gap today. But the state’s long-term solution is a robust talent pipeline that stretches from K-12 all the way through graduate school. That’s why we’ve funded Academic and Career Planning for our schools to expose kids as young as sixth grade to the careers that actually exist in Wisconsin and the education paths that lead to them, and why we funded a fabrication laboratory grant program for K-12 schools. But many of your business peers aren’t waiting for us in government to develop the youngest folks in our state’s talent pipeline. They’ve already begun doing it themselves, often bypassing us to go directly to our K-12 schools to win over future workers while they’re still Heavy Metal Bus Tour to Mid-State Technical College in Wisconsin Rapids kids. Three Lakes and Florence both have fab labs to MIT standards, permitting students from small towns in northern Wisconsin local companies like Lindquist Machine Corp. Bay Link is unique to collaborate on projects with peers across the globe using 3-D because beyond teaching manufacturing skills, it trains students in printers and hands-on machines. These projects were funded in part accounting, production planning, shipping and marketing, giving by generous donations from local companies like Lakes Precision, STEM and non-STEM students a real-world career experience. Pride Sports and BOSS Snowplow. These businesses aren’t simply Briggs & Stratton has developed unique access to the young investing because they’re nice corporate citizens. For that, they can science and technology talent at Milwaukee Lutheran High School buy jerseys for the little league. They are looking to train future through a work program hatched just this year. STEM students use workers. After all, these fab labs prompt students to think like the their after-school jobs at Briggs to build their skills and resumes. engineers and machinists these companies hire. Those committing to work at Briggs will see the company help pay Bay Link Manufacturing at Green Bay’s West High School is for their college degrees. supported by the local technical college and makes products for At Domtar Paper and Tweet Garot Mechanical, they throw open their doors and roll out the Gateway’s SC Johnson iMET Center red carpet for high school kids exploring local employers on the Heavy Metal Bus Tours sponsored by the Heart of Wisconsin Chamber. Young people come away with an accurate read on what manufacturing jobs really look like and employers get an early jump on recruiting young talent. Ariens has made Brillion High School the envy of the K-12 world, investing heavily in machines on which students train, preparing to launch into careers at the famous snowblower maker. Mercury Marine took a different turn, literally creating its own charter school for grades 3-5. Their STEM Academy in Fond du Lac is reaching students very young with the ideas and information that will make them great employees at the company someday. Small businesses are making an impact when they reach into K-12 education, too. The iLead Academy in Mauston, another charter school, has a direct line to the local entrepreneurs and inventors club. When a student decides to do an 16 individual experiment on smelting, for example, an email goes out to the club, a local expert is identified and an expert mentor is linked to the student to help with the project. Not every partnership between schools and employers requires more space or equipment, either. Plymouth High School worked with local companies to develop a soft skills rubric that grades students on the qualities many employers seek like collaboration, respect and work habits. The students are told up-front about these expectations and receive quarterly soft skills grades along with their academic scores. Moreover, local employers from Sargento Cheese to the community Piggly Wiggly ask students for their soft skill evaluations when hiring for summer or part-time Stoughton High School fab lab help. innovative models that will create the future of education – that has All of this is to say that creating our long-term talent pipeline requires the active engagement of government, educators and to happen locally, one school at a time, until we can take the best employers, and some of the most innovative examples of workforce and scale them statewide. So call your superintendent or even run development come from companies simply taking matters directly for the school board. There’s no reason why your local school can’t to the schools. After all, though the state can fund certain major be the next statewide model for excellence... or the source of your initiatives like academic and career plans, we can’t develop the next hire. BV

Bay Link Manufacturing at Green Bay West High School

17 Wisconsin Business Voice Wisconsin’s Biotech Innovation Industry Collaboration Key to Growth By Charles S. Sara

or those paying close attention to Wisconsin’s – and the Midwest’s – biotech industry, the forecast is “continued Fgrowth.” With its explosive growth in university research and technology transfer to business development, Wisconsin is a microcosm of what is going on nationally. In fact, Wisconsin’s biotech industry grew three percent per year during the Great Recession when other businesses were facing economic challenges. Wisconsin is recognized as a hub of scientific development and it boasts multiple Nobel Prizes for biotech discoveries that improve the human condition and create global impact. Described as “Biotech’s Third Coast,” Wisconsin is home to more than 1,600 biotech companies employing 36,000 people with economic output of $27 million in 2013. Dane, Milwaukee, Waukesha, Brown and Eau Claire counties are Wisconsin’s major hubs of bioscience activity. Industry Collaboration is Key While it may seem like the sole province of scientists wearing goggles and lab coats, the biotech industry, like any other industry, requires a vibrant infrastructure – business developers, investors, scientists, research institutions, lawyers, policy makers and skilled workers – to bring biotech innovation to market. Fostering collaboration among these partners is key to the biotech’s industry’s growth, concludes BioForward’s 2015 Wisconsin’s Bioscience Economic Development Report. Yet, the complex intersection of business, science and the law can quickly become a barrier for business leaders, investors and others trying to navigate opportunities in the evolving biotech industry. The area of patent law is rapidly changing, for example, and it means constantly monitoring cases, rules and regulations. My job as a patent lawyer – to vet the innovation to determine whether it’s patentable – is just one piece of this collaborative process. If we don’t adequately describe the innovation and its novel features in the patent application, it’s not going to withstand a critical review by a Patent Office examiner. Where to Start? A basic understanding of this industry opens the door to greater collaboration and opportunity. Look no further than the rich learning and networking resources in our backyards – the Wisconsin Technology Council, BioForward, BioNetWork Power Hour and State Bar of Wisconsin PINNACLE®. BV

Charles S. Sara is a patent attorney with DeWitt Ross & Stevens S.C., Madison, focusing on the biotechnology, agriculture and medical industries.

18 For Wisconsin Exporters, Turkey Can Serve as Gateway to Surrounding Regions lthough not yet among Wisconsin’s top export markets, attracts production facilities serving European markets; in addition, Turkey merits consideration as companies develop their export many existing factories are looking to buy new equipment as they strategies.A The country has evolved from a developing country to modernize and upgrade. one of the world’s newly industrialized economies. After adopting Despite security issues that exist due to internal conflict within reforms in response to a severe financial crisis in 2001, Turkey Turkey and its proximity to Syria, Wisconsin companies should not experienced strong economic growth averaging more than six discount Turkey as a promising export market. BV percent annually through 2008. The global recession caused GDP to contract, but Turkey's well-regulated financial markets and For more information on exporting to Turkey or other parts of the banking system helped the country weather the global financial world, visit the Wisconsin Economic Development Corporation’s crisis and GDP rebounded strongly to around nine percent growth website InWisconsin.com/exporting in 2010 and 2011. Solid domestic demand has helped the Turkish economy to grow beyond predictions for 2015. Turkey's largely free-market economy is increasingly driven by its industry and service sectors although its traditional INTERNATIONAL GROWTH agriculture sector still accounts for about 25 percent of OPPORTUNITIES IN TURKEY employment. An aggressive privatization program has 2015 Top2015 Export Top Categories Export Categories 2015 Top2015 Import Top Categories Import Categories reduced state involvement to Turkeyto Turkey from Turkeyfrom Turkey in basic industry, banking, transport and communication, and an emerging cadre of middle-class entrepreneurs is adding dynamism to the economy and expanding production beyond the traditional textiles and clothing sectors. As the economy develops further, plentiful opportunities exist for suppliers of industrial machinery. In Medical &Medical Scientific & ScientificInstruments Instruments – 40% – 40% Bed Linens,Bed Blankets Linens, &Blankets Curtains & – Curtains 49% – 49% addition, demand is strong for IndustrialIndustrial Machinery Machinery – 32% – 32% IndustrialIndustrial Machinery Machinery – 10% – 10% Plastics –Plastics 5% – 5% ManmadeManmade Filaments/Yarns Filaments/Yarns – 6% – 6% medical equipment and devices ElectricalElectrical Machinery Machinery – 5% – 5% Plastic ProductsPlastic –Products 4% – 4% as the health care system Paper – 5%Paper – 5% Medical &Medical Scientific & ScientificInstruments Instruments – 3% – 3% expands. Tourism is another All OthersAll – 13%Others – 13% Glass – 3%Glass – 3% strong and growing sector, Vehicles &Vehicles Parts – &3% Parts – 3% All OthersAll – 22% Others – 22% creating demand for restaurant and hospitality equipment as well as construction equipment Population: 79.4 million 2014 WI Exports: Key Industries: Cultivation of hazelnuts, and supplies. (14x greater than WI) $88.5 million fruit, tobacco, cotton; production Area: 783,562 sq km WI Export Rank: 32 of consumer electronics and home With a population of nearly appliances; textiles; motor vehicles; ship (5x greater than WI) 2014 WI Imports: 80 million, Turkey constitutes building; transportation and logistics; GDP: $798 billion $50.6 million a sizable export market in tourism; finance itself, but many U.S. companies (3x greater than WI) have also begun using it as a regional hub for business in To learn more about growing your business in Turkey, Central Europe, Central Asia visit InWisconsin.com/Exporting or call 855-INWIBIZ (toll free). and the Middle East. Since labor costs are lower in Turkey than in most parts of the European Union, the country 19 Wisconsin Business Voice Cultivating the Next Generation of Manufacturing Professionals By Kelly Rudy

t’s no secret the manufacturing industry is in the midst of a Engagement serious employment dilemma. With the retirement of the Baby Manufacturing leadership must implement a multifaceted approach IBoomer generation nearly upon us, leaders in manufacturing are to engage today’s youthful workforce. The first step lies with the looking to the next generation of highly skilled workers – only to individual – company leaders need training and education. Ongoing find there is very little interest in the industry. professional development is a crucial part of many industries, Students’ negative beliefs are reinforced by their parents who especially those in leadership positions. Good leaders are not frequently argue that manufacturing jobs will go overseas, by their born; they are made. schools who teach them that attending a university will lead them Professional development not only strengthens skill sets and towards better job and by the industry’s absence which was once leadership techniques, but offers strategies and education on the prevalent in every high school in the country. current industry environment, while simultaneously giving leaders It is feared that as many as two-million manufacturing job a peer platform to collaborate and collectively develop solutions to positions will go unfilled because potential workers lack the right help curb this dilemma. technology, computer and technical skills these jobs require. Getting involved with both government and educational Machinists today must be a hybrid of both traditional machine administrations to begin reinstating apprenticeships and school- operator AND computer programmer. to-work programs will greatly influence youth engagement. One of The solution is to engage millennials. The manufacturing industry the biggest contributors to low interest in manufacturing is the lack needs leaders that are willing to invest in and actively engage the of correct information about the industry. next generation so they start seeing the manufacturing industry as Engaging youth on their own terms is just as important. Using an attractive and viable career path. technology to interact with them on the various devices and This outlines the vital importance of leadership and the crucial role social platforms to which they are constantly connected offers manufacturing industry leaders must adopt in order to stem the unprecedented exposure, awareness and levels of interaction that coming tide. were never available in the past. Today’s manufacturing leadership must evolve in order to engage The millennial generation is simply not aware of many of the the new workforce, where both a revitalization and revision of old positive facts regarding manufacturing. Yet one of this generation’s engagement methods synthesizes with a modern technology-based defining traits is the ideology that their work must be meaningful approach to achieve success. and have a positive impact on the world. Students desire jobs that use the latest technologies, build amazing products that matter, provide upward mobility in their career paths and offer competitive starting wages that grow across their career span. And they really don’t want to start their young professional “WMC affords Greenheck Fan the opportunity to invest and take lives with massive student debt. Most students have no idea the part in activities that support Wisconsin businesses and bring manufacturing industry meets all of these criteria. awareness to the issues and legislation that may impede our growth and expansion. Through our support of and participation The Next Chapter in Manufacturing in WMC’s various events and endeavors, we have been able As an industry leader, creating youth awareness on the local, to build and foster key relationships with fellow business statewide and national levels must become a primary objective. professionals throughout the state. Corporate leaders are charged with spearheading campaigns that There is no better opportunity when it comes to will overcome these challenges. interacting with those involved in bettering By taking part in their own professional development, leaders will our state’s business climate.” gain the information and awareness necessary to start solving these problems. This will allow leadership to influence the current state of Jim McIntyre, President & CEO Greenheck Fan Corporation things – collaborating, devising solutions and focusing on getting the correct information to the young workforce will create a revived interest in manufacturing careers. BV Kelly Rudy is president of The Paranet Group

Not a member? Join today. www.wmc.org/membership

20 SUPREME COURT

Jim Pugh Vice President/Treasurer, WMC Issues Mobilization Council, Inc.

Kloppenburg Dangerous for Wisconsin Families “I never said I was tough on crime…being tough on crime was not my and other liberal interest groups. Since being elected to the message.” - JoAnne Kloppenburg, Marquette Law School Supreme Court Wisconsin Appeals court in 2012, Kloppenburg has confirmed she Candidate Forum, March 22, 2011 is not tough on crime. Let’s take a look at Kloppenburg’s rulings on the appeals court. ive years later, MadisonAppeals Court Judge JoAnne Unsafe Streets. Kloppenburg ruled in favor of a methadone patient Kloppenburg has proved herself prophetic. and long-time drug abuser who ran over an elderly woman while FShe definitely isn’t tough on crime. driving under the influence of the synthetic heroin. The driver told the police he had taken the methadone 20 minutes before he In 2011, Kloppenburg uttered her famous quote about not being killed the woman. Kloppenburg ruled that the methadone evidence tough on crime at a Marquette Law School candidate forum. She should be excluded. was in a hotly contested race against Wisconsin Supreme Court Justice David Prosser in the midst of the statewide brouhaha over Unsafe Homes. Kloppenburg ordered a new trial for a man who Gov. Walker’s public employee union reform. showed pornography to and molested his adopted daughter. The Wisconsin Supreme Court overturned Kloppenburg’s ruling and Ultimately, Prosser defeated Kloppenburg for the Supreme Court upheld the conviction of the sex offender. and she has since gone on to win a seat on Wisconsin Appeals Court in the Madison area. She interned for former Chief Justice Unsafe Schools. Kloppenburg sided with a male teacher who was Shirley Abrahamson. fired for using a school district computer to view pornography and then sharing it with female employees. The school district was Kloppenburg spent more than 20 years as a lawyer working for forced to rehire the teacher. the Wisconsin Department of Justice where she made a career out of litigating against businesses and farmers on environmental Unsafe for Children. Kloppenburg sided with a sex offender who matters. She once successfully asked a judge to throw a farmer in claimed he didn’t understand that having sex with a girl under 16 jail at Christmas time over a land use issue and she sued a famous was a crime and that his guilty plea should be withdrawn and a restaurant owner for repairing his pier on a Waukesha area lake. new trial ordered. Wisconsin businesses should be gravely concerned about Unsafe Neighborhoods. Kloppenburg ruled in favor of a heroin Kloppenburg receiving a 10-year term on the high court in part dealer and against police who found him a high-drug trafficking because she could form an activist majority in the future with area. The dealer had heroin packets falling out of his pockets when former Chief Justice Abrahamson, whom she has cited as her confronted by police but Kloppenburg ruled the evidence had to be judicial role model. While on the Court of Appeals, Kloppenburg suppressed. has ruled in favor of plaintiffs on medical malpractice and Siding with Prisoners. Kloppenburg reinstated a lawsuit filed by wrongful death claims. While in the Department of Justice, her a first degree murderer against his parole agent for denying him case load almost exclusively included representing the Wisconsin parole. The frivolous lawsuit was part of nearly 100 appeals since Department of Natural Resources against businesses. She has his 1984 conviction. been rejected by Republican and Democrat governors for several appointments to the appeals court, President Obama did not Clearly, being tough on crime is not Kloppenburg’s forte. appoint her to the federal bench when she applied in 2009, and Kloppenburg is a Madison native who would attempt to impose she was rejected in her application to serve as the city attorney in her views onto the law. She studied under former Chief Justice Madison in 2004. Abrahamson who led the liberal Court in overturning caps on During the 2011 election, Kloppenburg received the outside punitive damages, medical malpractice caps and imposed a “guilty support of nearly $1.9 million in spending by the Greater until proven innocent” standard for manufacturers. Wisconsin Committee, a political group with deep ties to unions She never said she was tough on crime. Why? Because she’s not. BV

21 Wisconsin Business Voice ENTREPRENEURSHIP ENTREPRENEURSHIP Wisconsin Is Full of Great Ideas (and has the entrepreneurs to prove it) By Mark Crawford

ntrepreneurship is on the rise in Madison, and support from growing Wisconsin. After emerging from funds like CSA Partners, LLC, there Ethe Great Recession, Wisconsin’s are a lot of resources to boost activity.” entrepreneur and venture communities Other indices show Wisconsin ranks continue to grow at a steady pace and higher when certain types of startups hold their own against their Midwest are considered – neighbors. for example, tech For Paul Jones, counsel to Michael startups. Also, some It is much cheaper to start and Best and Friedrich LLP’s Business parts of the state Practice Group in Madison, clearly produce more operate a startup in Wisconsin Wisconsin’s entrepreneurial climate young companies than is reminiscent of North Carolina and others. In Madison, compared to big-city hubs like Research Triangle Park in the mid- for example, “every 1990s. “We are just getting to the time I look around San Francisco or Boston. inflection point of the growth curve,” there seem to be more says Jones. “We are comparable today companies getting their first couple to places like Columbus, Ohio and million dollars to turn their ideas into Memphis, Tennessee. We are shooting reality,” says Wes Schroll, founder of for Austin, Texas status over the next Fetch Rewards. “Once companies get decade. Historically, Wisconsin has to that stage, the probability is much received about half of one percent of higher they will find a way to succeed.” national venture funding. We need Wisconsin is also trending upward to get to 2.5 percent or so to have a for and angel capital. vibrant, self-sustaining, high-impact, Although its data compilation is startup-driven innovation sector.” incomplete, the Wisconsin Technology According to the Kauffman Council expects 2015 totals to be Foundation's annual Index on Start- comparable to 2014, which scored Up Activity released in June 2015, 113 angel and venture deals totaling Wisconsin dropped from 45th place $300 million in funding “I think our to dead last among all 50 states. greatest weakness is that people don’t Many business leaders felt this did seem to appreciate how well certain not accurately reflect Wisconsin’s regions in the state are really doing,” entrepreneurial climate. “I’d want to comments John Eckhardt, a UW know more about how those metrics professor of management and human were defined and measured,” says resources and co-founder of . Joe Scanlin, co-founder and CEO “We tend to report state-level of Scanalytics. “We would be remiss statistics for assessing performance, if we ignored what Wisconsin has when regional numbers are probably built in an arguably short period of more appropriate. High-growth time for supporting and encouraging entrepreneurship really tends to be startup growth. With programs like clustered in smaller regions.” gener8tor, a startup accelerator in

23 Wisconsin Business Voice Top Startup Sectors community aspect was certainly attractive when I was deciding Life sciences, biotechnology, medical devices, health information, whether to start Fetch Rewards here or on the East Coast,” says clean tech and digital technology are drawing the most venture Schroll. capital (VC) interest in Wisconsin. In terms of number of viable Scanlin indicates many Midwest entrepreneurs have that “roll deals, the hottest sectors are in IT – software, e-commerce, gaming, up your sleeves and figure it out" mentality, which is particularly mobile and web applications. useful if funding shortages arise. Another Wisconsin attribute is the “There has been a big jump in software-based businesses over the strong technology base/workforce, anchored by highly skilled UW past five years,” states Aaron Hagar, vice president of the division graduates who can build almost any type of product. of entrepreneurship and innovation for Wisconsin Economic Although Wisconsin has a lower overall startup rate compared Development Corporation (WEDC). “Software touches almost to other states, it does have a relatively high survival rate. Its everything we do and we’re seeing business-to-business solutions entrepreneurs are accustomed to working hard and finding ways to working in a number of different industries.” raise money for their companies. “They understand business, pay IT is sizzling for several reasons. It is much cheaper to start and attention to cash flow and look for support from an increasingly operate a startup in Wisconsin compared to big-city hubs like San strong infrastructure for early stage companies,” says Tom Still, Francisco or Boston. IT deals in Wisconsin typically require less president of the Wisconsin Technology Council. capital and less time to get to a plausible exit. The state’s IT talent is tart up apital also recognized as some of the best in the country. S - C Thomas Shannon is president and CEO of BrightStar Wisconsin “Given the paucity of larger venture firms in Wisconsin, it is much Foundation, which helps promising startups secure early stage harder to win funding for deals that are going to need tens of millions funding. Shannon is impressed by the abundance of smart and of dollars to get home,” says Jones. “However, this process is starting enthusiastic entrepreneurs in the state. “The metrics seem to support to change as some out-of-state players – for example, Drive Capital that Wisconsin has all the raw ingredients it needs for success – – are taking a harder look at deals ‘between the coasts.’” there is just not enough start-up capital,” he says. Joe Kirgues, co-founder of gener8tor, agrees. In most cases, the first few rounds of a company's financing are “In digital technology, we've seen a tremendous amount of new secured through Wisconsin’s angel networks and funds. Some of investment from regional and national venture funds,” states the most active angel networks in the U.S. – Wisconsin Investment Kirgues. For example, EatStreet recently raised a $15 million Series Partners and Golden Angels – are located in Wisconsin. The state’s B with participation from funds located in Illinois and California. investor tax credits also stimulate investment activity. Not only is the dollar amount impressive, but getting “West Coast One of the most significant changes in the national investment money is a great example of a Wisconsin company being able to landscape over the past five years is the advent of business accelerators. attract ‘real’ money to help it grow and succeed,” adds Schroll. Other Business accelerators have fundamentally changed seed-stage VC successes include Propeller Health (national venture funds) and financing of startup companies. “In particular, accelerators have been Ionic (Minnesota and Illinois). a major force in standardizing deal terms and catalyzing a national financing market for early stage companies,” says Eckhardt. Wisconsin Advantages Wisconsin has a close, supportive community for both entrepreneurs The next stage of growth financing is often provided by Wisconsin's and venture capital firms. This network helps entrepreneurs find early stage venture funds, such as CSA Partners or 4490 Ventures. resources and avoid mistakes. “People are generally willing to Wisconsin's most active venture financing partners are found in be constructive and helpful, even if they aren’t going to invest or Illinois and Minnesota. “While some regional or even national VCs otherwise get involved with the project,” says Hagar. For VCs, the show up in these early rounds, their interest typically lies in the entrepreneurial community tends to share its pipelines and invites growth rounds following a Wisconsin fund,” says Kirgues. multiple groups into good rounds. This is in part to minimize WEDC supports the funding of early-stage, high-tech companies risk, but local VCs also understand that additional partners bring through its Qualified New Business Venture Program (QNBV). other resources and connections that will help the company grow Since it was established in 2005, QNBV companies have raised faster. “Maybe it’s just the whole ‘Midwest Nice’ approach, but the about $321 million in investments that qualified for over $80 million 24 in tax credits. In 2014, QNBV companies generated more than $128 growing enterprises that can be cultivated on the East and West million in total investment. Coasts,” Schroll added. Other government initiatives include the Badger , Another way to attract VC is playing by its rules. a joint state-private partnership designed to help new companies. “Wisconsin, as a minor player in the VC game at this stage, needs Senator and Representative Adam Neylon have to keep up with what’s going on nationally and try to get into that proposed an industry-cluster legislative package (AB757 and game in a serious way, before we strike out on our own path with our AB758) that promotes R&D public-private partnerships. “I own rules,” cautions Jones. “People in the major venture centers tend continue to hear that Wisconsin trails other states in the amount to view us skeptically. To be crude, they think we are hicks. Fair or of institutional investment and that this investment could be not, we have to deal with that and the best way is to learn the rules more regionally diverse,” says Neylon. “The Seeds for Growth Bill of the road, why they are what they are, and to stick to them as much [AB486] addresses both these issues by providing more tax credits as possible.” for investing in Wisconsin startups.” Venture capital is a long-term industry whose investments often Moving Forward take years to show progress. The emergence of new funds, such as Wisconsin VCs are looking for traction in the marketplace, great 4490 Ventures and CSA Partners, are hopefully setting the stage management teams and other support to reduce operational risk. for robust venture capital growth in Wisconsin over the next three Wisconsin startups are showing up more on the radar of big East to five years. and West Coast VC firms. “Things have been so hot recently on the “We have a wealth of talented people in this state, working coasts that VC firms are looking to find the diamond in the rough in extraordinarily hard to bring new ideas to market,” says Hagar. places like the Midwest,” says Schroll. “While we may not see the highest dollar amounts invested, This is a good start for Wisconsin, but big VCs want to see companies tend to make good use of the funding they attract. Our blockbuster deals that bring returns of 10 or 20 times on their business success rate is also quite high, showing that Wisconsin investments. Impressive exits by some of the companies who have entrepreneurs are successful in finding the resources and customers taken the majority of their money from the Midwest would bring they need to stay in business.”BV more VC attention. “This would show that Wisconsin can produce Crawford is a Madison-based freelance writer. companies that are not 10-year investments, but instead are fast-

G IV E E IL Y M O S UR O E N T MP SO LOYEES A REA

A healthy smile is a powerful thing. It can transform a mood, shift a mindset, change a life. Help your employees protect theirs with Delta Dental, the nation’s leading dental benefits provider. With more than 50 years of experience, of Wisconsin we have the tools, oral health resources, and industry expertise to be your SMILE POWER™ partner in wellness. DeltaDentalWI.com

25 Wisconsin Business Voice My Closing Argument Why I Should Continue Serving on Wisconsin’s Supreme Court By Justice Rebecca Bradley

fter practicing law in the private sector for over 16 years, I school teacher. My answered a call to public service as a Milwaukee County family’s experiences CircuitA Court Judge in Children’s Court, where I dedicated myself gave me a unique to strengthening families, protecting children in need, keeping appreciation for the the community safe and treating everyone in court with dignity challenges faced by and respect. I then served as a Wisconsin Court of Appeals Judge, families all over our reviewing decisions made at the trial court level and writing great state. opinions in all areas of the law. I am honored to bring nearly 20 My positive campaign years of experience in the legal and judicial professions to our focuses on my State’s highest court. I am the first Wisconsin Supreme Court experience, service to the Justice in state history to bring judicial experience on both the trial people of Wisconsin and court and intermediate appellate court benches. my judicial philosophy: Serving the people of Wisconsin as a member of the judiciary has justices should interpret been the most rewarding experience of my professional life, and the law, not invent it. I am grateful to those who expressed confidence in me with their The people of Wisconsin support and votes. I humbly ask are best served by the voters of Wisconsin to “The people of Wisconsin justices who retain me as their Wisconsin understand their Supreme Court Justice. are best served by justices who duty to state what I became a judge because I understand their duty to state the law is, not care deeply about Wisconsin what the law is, not what they what they prefer it to be. and its communities. I was Justices should defer to democratic processes that result born and raised in the city prefer it to be.” in the creation of laws by legislatures and not attempt to of Milwaukee and have lived in impose their policy preferences in decisions. It is essential to our Wisconsin my entire life. After my dad lost his job in the 1980s system of justice to have independent justices who will apply the recession, my family struggled like many Wisconsin families. But law impartially, free of political agendas. America was founded I was blessed with parents who instilled in their children a strong on the principle that Constitutional laws enacted by the people’s work ethic, the importance of education and the value of family. representatives in the legislative branch of government should be My sisters are stay-at-home mothers. My brother is a public high upheld by the judicial branch, not second-guessed. Laws are appropriately subject to judicial review, not a judicial veto. The judiciary should defer to legislative policy choices, not impose their own. Justices should apply the law as it is written, guided by principles such as judicial restraint and respect for the separation of powers among the three branches of government. I also contribute positively toward the collegiality of the Supreme Court. Throughout my professional career, I have always been able to get along well with my colleagues. I bring an excellent judicial temperament and positive personal demeanor to the Wisconsin Supreme Court. When I proudly took the Oath of Office, I swore to support the Constitution of the United States and the Constitution of the State of Wisconsin. I understand my duty to apply the law as it is written and not as I may wish it to be. I have faithfully exercised this duty in hundreds of cases as a judge on the Milwaukee County Circuit Court, the Wisconsin Court of Appeals and as a Justice on the Wisconsin Supreme Court. It is my honor and privilege to serve Justice Rebecca Bradley addressed the WMC Board of Directors in the citizens of Wisconsin. BV Madison.

26 We make it our business to KNOW YOUR BUSINESS

West Bend’s insurance professionalsWEST know BEND a lot about business. And precisionDOES. metalworking is one of our specialties.

Let us use our expertise to provide the best coverages for your company.

Call an Official Supplier of the Silver Lining® to find out more.

Visit thesilverlining.com for the name of the agency nearest you. MADE IN WISCONSIN… featuring

Amerequip Corporation 1015 Calumet Ave. Amerequip, a manufacturer Kiel, WI 53042 of custom equipment for the (920) 894-2000 lawn, landscape, agricultural www.amerequip.com and construction markets, has made significant 260 Wisconsin Employees investments since 2011. These investments have Established 1920 broadened their product line with a focus on custom solutions for clients, thus leading to several patents for new equipment. Amerequip has invested in additional assembly capacity, a new training center, and is currently in the planning process for further expansion in 2016. Today, the firm’s products are produced in four Wisconsin locations by 260 team members and are sold worldwide.

Masters Gallery Foods, Inc.

328 County Hwy PP In a world where technology Plymouth, WI 53073 often overshadows people, (920) 893-8431 Masters Gallery Foods, Inc. has www.mastersgalleryfoods.com skillfully combined the best of 535 Wisconsin Employees both worlds. The family-owned company has created Established 1974 a culture that values relationships, collaboration and commitment to excellence at every level within the organization, a family that is 530+ employees strong and growing. Marketing over 500-million pounds of top quality cheese every year, their state-of-the-art production facility cuts and wraps natural cheese products for distribution throughout the United States, Puerto Rico, China, Mexico and more.

Felss Rotaform LLC

5160 S. Emmer Dr. Felss Rotaform LLC specializes in rotary swaging and New Berlin, WI 53151 axial forming, integrated with secondary operations (262) 821-6293 and robotics to produce high quality automotive parts. www.felss.com With only one other company in the country with rotary 51 Wisconsin Employees swaging machines, Felss relies on creative approaches Established 1999 and their knowledge from within to be a leader in their unique processes. Felss custom machines are integrated with high tech automation, inspection and handling by skilled technicians to produce automotive products shipped not only within the United States but to China, Brazil and Mexico. MADE IN WISCONSIN… featuring Teel Plastics, Inc. Award Winners 1060 Teel Ct. Teel Plastics, Inc., named one of Baraboo, WI 53913 twenty five World Class Processors (608) 355-3080 of 2015 by Plastics Technology, has specialized in custom www.teel.com extruded plastic tubing and profiles for over six decades. 250 Wisconsin Employees Their reputation of exceptional custom plastic products Established 1951 is due to their highly skilled employees and unique extrusion manufacturing techniques. Teel Plastics serves very diverse markets, ranging from high-end medical products such as IV tubing, catheter components and medical packing products, to the automotive, window, computer and water filtration industries. Responsiveness, product development and their approach to work with customers in the design and development phase allows Teel Plastics to be esteemed in the plastic extrusion industry.

Alto-Shaam, Inc. W164N9221 Water St. Since its inception, Menomonee Falls, WI 53051 developing innovative (262) 251-3800 solutions in food preparation has been Alto-Shaam’s core www.alto-shaam.com strength. They partner with their customers to innovate 433 Employees and develop new products that will provide high-quality 391 Wisconsin Employees food while reducing energy, food shrinkage and labor costs. Established 1955 Today, Alto-Shaam’s products include cook and hold ovens, food warmers, steam and convection combination ovens, buffet servers, high-speed ovens and more. Their products are used in commercial kitchens in restaurants, hotels, schools, business commissaries, casinos, banquet facilities and cruise ships around the world.

Generac Power Systems, Inc.

S45 W29290 Hwy 59 Generac has been a Waukesha, WI 53189 leading designer and (262) 544-4811 manufacturer of a wide range of generators and other engine www.generac.com powered products since 1959. Generac’s products are 3,600 Employees available through a broad network of independent dealers, 2,600 Wisconsin Employees retailers, wholesalers and equipment rental companies. Established 1959 They are committed to developing a long-term vision that promotes environmentally responsible products, processes and partnerships, offering product options that allow their customers to shrink their ecological footprint when backup energy use is required. The first annual Wisconsin Job Honor Awards were presented February 23 at WMC’s Talent Conference in Madison. The awards highlight the success of non-traditional employees and the employers who hire people facing life challenges.

This year’s winners were…

Step Industries Mitchell Matthiesen Jason Wright Ultratec STEP Industries, who has Even though he is blind More than two years after Ultratec, a manufacturer served more than 10,000 and autistic, Olsen’s being hired at Ariens of hearing-impaired men and women in the Piggly Wiggly in Green Corporation, Production phones, embraces disabled past 30 years, provides Bay looked past Mitchell Trainer Jason Wright employees and their hope and job opportunities Matthiesen’s disabilities credits the Brillion-based unique skillsets to better without judgment for to see his strengths, manufacturer for saving his their organization and the individuals in recovery capabilities and the good life by giving him a chance individuals they employ. for issues with drug and work he is able to do for after a rough start to life alcohol. their store. and despite having spent time in jail.

Winners of the first annual Wisconsin Job Honor awards, Michelle Devine Giese of STEP Industries, Mitchell Matthiesen, Jason Wright and LiliAnne Carey of Ultratec.

30 BUSINESS & EDUCATION

Steve Benzschawel Director of Wisconsin Business World® Business World Real World Experience, Life-Changing Results! ince 1982, Wisconsin Business student at Southwestern High School in Hazel Green and is now World has been a summer continuing her education at UW-Whitewater. Melissa attended Stradition for high school students the program twice in high school and was upset when her time as a who want to learn about business student at BW was over, until she learned about being part of BW and experience life on a college campus. Through hands-on projects college staff: and competitions, students are put in the driver’s seat to manage a “After my second year was over I was a little sad I wasn’t going company and make many of the same decisions faced by real-life to be able to go back to Business World. That is when I learned business executives. I could come back as college staff. Business World had given We prepare students to be career-ready through hands-on me so much and I have received so many opportunities from experience, taught by business professionals who have seen first- my experiences there that I wanted to give that same thing to hand what skills the younger generation needs to become ready for the younger generation. Honestly, this is a program that has the workplace. made me the person I am today. It helped me decide my career Anyone who has witnessed the closing ceremonies at Business plans, where to apply for college, and improved my network and World can attest to the enthusiasm and energy that fills the room connections with people.” on the final day of camp. Students who only days earlier were a Ryan Malliet attended Business World as a student at New nervous, scared and withdrawn group, have come out of their shells London High School and now studies business at UW-Madison. to make new friends, prepare for life after high school and set goals Ryan had this to share: for their future. “Business World has meant a great deal to me. As a camper I If you think back to when you were in high school, you might learned a great deal about business activities and got to apply remember how it can be a scary and confusing time trying to them in a fun and engaging way. Becoming part of the BW decide what path your life will take after high school. Many of our college staff has allowed me to stay involved and give back to a students have indicated their time at Business World helped clarify program that means a lot to me. I love being a role model and and focus their post-high school goals. Much of that clarity and resource for high school kids as they prepare for college and want focus can be attributed to the role our college staff plays at camp. to learn more about business. BW is absolutely the highlight to College staff help keep students safe at camp, but their influence my summer and I look forward to going back each year. ” extends far beyond nightly dorm room checks. Since college staffers are only a few years removed from being in high school themselves, Don’t Miss Out on BW 2016! they are in a great position to help high school campers with Don’t let the high school kids in your life miss out on Business questions about college classes, majors and internships. World this summer! There are sessions in June and July so pick the week that works best for you and sign them up to join in on the Learners Today, Leaders Tomorrow fun. BV I recently asked our college staff for reflections on their Business Follow Steve on Twitter @wibusinessworld World experience. Melissa Pearce attended BW when she was a Support the next generation of business leaders! June 19–22, St. Norbert College, De Pere • July 10–13, Edgewood College, Madison

Visit www.wibusinessworld.org to learn more.

31 Wisconsin Business Voice Wisconsin Needs Both Tech Certificates and Four-Year Degrees By Cathy Sandeen

ood Jobs are Back: College Graduates are First in Line, a recent But we need both. We need multiple pathways to certificates, report by the Georgetown University Center for Education credentials and four-year degrees to fuel our economy. Gand the Workforce, should give us food for thought here in The University of Wisconsin Colleges are Wisconsin’s best-kept Wisconsin. secret and are one our state’s best assets. Our 13 campuses and “Good jobs” are defined as those that pay more than $53,000 UW Colleges Online provide an accessible way for students to (26 percent above the median), most of which are full-time and complete the first two years of a bachelor’s degree close to home include health insurance and employer-sponsored retirement plans. in an environment focused on their academic success. According to the report, good job opportunities have been growing. Bruce Albrecht, vice president for global innovation and technology Management, health care, science, technology, engineering and at ITW Welding companies – which includes Appleton-based mathematics-intensive positions all are on the rise. Middle-wage Miller Electric Manufacturing – is among the Wisconsin business and lower-wage jobs are recovering more slowly than the good jobs. leaders looking to UW Colleges as a partner in workforce College graduates with four-year degrees have been overwhelmingly development. “Miller Electric develops innovative welding solutions hired into good jobs. for the metal working industry and places a high value on UW We see a welcome shift toward “good jobs” here in Wisconsin, too. Colleges engineering programs,” he says. “We help employees Even in the manufacturing sector, where we might assume less continue their education in engineering at UW Colleges and UW demand for employees with bachelor’s degrees, the workforce is Platteville, and take interns from the campuses. We consider them a shifting toward a higher level of education as manufacturers shift to great local investment.” greater automation, lean processes and quality improvement efforts. With average tuition and fees of $5,100 per year, the UW Another recent study, this one by Jonathan Rothwell of the Colleges also are the state’s most affordable higher education Brookings Institution, found “the average bachelor’s degree holder option. Students can transfer smoothly to one of the UW four- contributes $278,000 more to local economies than the average year campuses or can complete a bachelor’s degree at many UW high school graduate through direct spending over the course of his Colleges campuses through a collaborative degree program or our or her lifetime; an associate degree holder contributes $81,000 more Bachelor of Applied Arts and Science degree program. than a high school graduate.” In terms of consumer spending alone, Similar opportunities are available to students who have earned an more educated citizens make greater contributions to the economy. associate degree or have completed courses elsewhere, including at Higher education is an investment with broad benefits. a technical college. They, too, can complete a bachelor’s degree on Wisconsin’s outstanding technical college system builds a career- a UW Colleges campus with flexible classroom-based and online ready workforce prepared for many essential jobs. We hear our need programs that fit their busy lives. for welders stressed time and again. The UW Flexible Option offers another pathway for individuals to resume their education and complete a bachelor’s degree. Students in this innovative program use skills and knowledge they already have to work through a series of assessments rather than attending individual “We are a home-grown Wisconsin family business with an old and rich classes. tradition of working with our noses to the grind stone. We work hard to ensure future prosperity, happiness and freedom for ourselves and our families. We Some 800,000 Wisconsinites with some college but no know how to manufacture and conduct business, but we are not experts in bachelor’s degree can benefit from UW Colleges and UW the political dealings that come out of Madison and do not strive to be. Flexible Option programs. We offer pathways to good jobs for people at any point in their lives and careers. Our business relies on WMC to communicate and advise us on where the limits of government power are being transgressed and how the government Recent reports give us reason for optimism, signaling that is making it harder for us to do our jobs. In turn, we can make informed good jobs and fulfilling careers await today’s students. business decisions and to encourage the company’s team members to They also provide a wake up call, underscoring the need to educate themselves regarding these issues and take a stand. upgrade the post-secondary attainment level in our state and recognize the essential and affordable asset we have in WMC has an old and rich tradition of working hard to add value to our the UW Colleges and UW Flexible Option. BV membership, and more importantly, to our great state.” Cathy Sandeen is Chancellor of UW J.R. Menard, Executive Vice President & Treasurer Colleges and UW-Extension Menard, Inc Not a member? Join today. www.wmc.org/membership

32 Business Day in Madison WE’RE CONTROL FREAKS

Our customized process control solutions for manufacturers keep plants online and efficient. We only do one thing: innovative process technology from engineers experienced in integrating control platforms. Your complex problems Gov. Walker discussed what the state The upcoming elections and become our challenge—and our of Wisconsin is doing to enhance and candidate overview were covered by solutions. better the business community and Fox News contributor Stephen Hayes. close the ever-looming talent gap.

At this year’s Business Day in Madison, attendees got an in-depth look at Wisconsin’s demographics from demographer Ken Gronbach and heard an overview of the state of the economy moving into 2016 elections.

Larry Kudlow of CNBC’s The Kudlow Report addressed the importance of allowing businesses to succeed without regulating and taxing them. Where engineering, information technology and business intersect to provide creative solutions for continuous process control automation.

U.S. Senator Ron Johnson addressed our daunting projected deficit of $103 trillion and discussed the way to get better jobs and 24/7 SUPPORT better opportunities is to work together towards a shared goal.

FOR COMPLETE PRODUCT AND SERVICE INFORMATION, VISIT TRIDENTAUTOMATION.COM Save the Date: March 1, 2017 OR CALL 920.759.7477 RIGHT TO WORK

Chris Reader WMC Director of Health & Human Resources Policy

Right to Work One Year Later pproximately one year ago Wisconsin became the 25th Right During the debate on Right to Work, a few companies with a to Work state. Gov. Walker signed the law, 2015 Act 1, on unionized workforce took the anti-Right to Work debate to even MarchA 9, 2015, in the face of sky-is-falling rhetoric from labor higher heights, threatening to leave Wisconsin if we became the unions and the left. Gov. Walker and legislative Republicans passed 25th Right to Work state. It appears, one year later, these threats Act 1, despite the claims made against Right to Work, because were just as empty as the general talking points from the unions, the facts tell another story, one with a promise of job growth and as none of the prominent companies have actually moved their freedom for workers. headquarters or ceased operations in Wisconsin. That story of freedom starts with a clear understanding of what There have been some sobering statistics for unions in Wisconsin exactly Right to Work is and what it isn’t. It’s actually a simple law lately with Wisconsin’s overall union membership dropping from which says workers cannot be forced to join and pay dues to a labor approximately 14 percent of the workforce in 2010 to 8 percent in union. If a worker believes a labor union at their worksite is doing 2016. But that drop is not due to Right to Work. It is driven largely a good job bargaining for their interests, they can decide to join the by massive public sector union membership declines since Act 10 union. If they believe the opposite, the worker can vote with his was signed five years ago. or her money and not join and pay dues to the union. At its heart, Since Wisconsin’s Right to Work law was signed, one more state, Right to Work is an ideal that runs deep in American history – not West Virginia, has become Right to Work, while no states have being forced to join a group if you don’t want. It's about freedom in repealed their Right to Work status. the workplace. Looking forward, Right to Work promises to be a key policy Right to Work is not, despite the union talking points last year, an helping bring economic growth to the Badger State. As part of the attack on workers or on labor unions. The experience in Wisconsin majority of states that are Right to Work, Wisconsin is now able to over the last year and in other states over the last decades has compete for expansions and new facilities, and the jobs that come proven that to be a false talking point. One year later, none of along with those new opportunities. If history is a guide, Right to the dire predictions have come true. Private sector labor unions Work states will continue to outperform forced-unionization states continue to exist and, working with employers, continue to be an in job growth and worker migration. With the new opportunities integral partner to provide worker training and other services. In for growth, Wisconsin should be on the positive side of that ledger fact, one prominent opponent to Right to Work, the road building going forward. Interestingly, despite their opposition to right-to- labor union, has since completed a multi-million dollar expansion work, private sector labor unions will likely see their membership of a training facility in central Wisconsin. That’s not something the numbers increase as more union jobs come to Wisconsin in part union would do if it believed the rhetoric during the Right to Work because of our Right to Work status. BV debate. Follow Chris on Twitter @ReaderWMC Companies still sit down with unions and negotiate collective bargaining agreements and workers are still able to strike – just ask Kohler Company. The difference perhaps is now labor unions have to be more attentive to what the workforce wants. In other words, they have to provide a service to their customers.

34 It’s our business to know the insurance needs of manufacturing and distributing businesses. We help you create flexible, custom-made risk management solutions to help protect you when you need it most. With Sentry, you’ll spend less time worrying about insurance and more time running your business. And that’s good business.

1-877-373-6879 • sentry.com

Exclusively Endorsed by:

for business insurance This is a paid endorsement. Property and casualty coverages are underwritten by a member of the Sentry Insurance Group, Stevens Point, WI. For a complete listing of companies, visit sentry.com. Policies, coverages, benefits and discounts are not available in all states. See policy for complete coverage details. 40-3074 14000524 7/9/15 Recruiting New College Graduates What are Wisconsin Students Looking for? isconsin employers face difficult challenges when hiring Personal experiences are most dominant in motivating students to college graduates. Compared to neighboring states, apply to companies. For example, internships are the most powerful Wisconsin’sW population has fewer college graduates: 25.7 percent way to attract new graduates to full time positions, and making of our state population has a four-year degree, versus Illinois’ 30.6 connections through alumni, friends and relatives already employed percent and Minnesota’s 31.5 percent. The lower access to college by a firm are also effective in attracting students. Career fairs are graduates means employers must be particularly attuned to what valuable. The authors of this paper have seen employers supplement graduates are seeking, so they can attract candidates from our attendance at career fairs by connecting with professors and staff to smaller pool. Making the challenge even harder, we continually lose be involved in the classroom and other campus activities. some college-educated talent to other states, the so-called “brain In terms of factors that drive student preferences toward certain drain.” Regardless how much Wisconsin actually experiences brain positions, responses showed the most important factor overall is drain, keeping native talent should be a priority. work-life balance. Health and retirement benefits, job security, How can Wisconsin employers improve their ability to recruit company reputation and colleague relationships also rank higher college graduates? One strategy is to gain more knowledge about than pay in importance. In addition, 57 percent of respondents the needs and desires of new graduates and understand how want to work for only one company during the first five years out new college graduates navigate the job search process. To help of college, suggesting a majority of graduates are willing to commit employers who wish to pursue this strategy, a team of UW business strongly to companies that meet their needs. professors assessed these employment issues among college students who are close to graduating. How important are factors below when considering a job? (Note: means are based on a scale of 1 (low) to 5 (high). The ‘Top Box’ column reports the percent of students rating items as ‘5’.) Survey data was collected from 883 business students across ten Top Box % 4-year UW campuses (all campuses except Madison, Milwaukee and Whitewater). Surveyed students are pursuing majors in I worked there (e.g., as an intern) and had a good experience 90.7% Accounting, Economics, Entrepreneurship, Finance, Human Someone there met me and I feel some connection 76.0% Resources, Information Systems, Insurance, Management, Marketing, Operations/Supply-Chain and Sales. Almost 84 A friend or relative suggests I consider them 72.7% percent will graduate by spring 2017. Roughly 37 percent are first- generation college students. A little more than half are male and A professor or staff member suggests I consider them 63.4% approximately 87 percent are Caucasian (6.3 percent Asian/Pacific- They participate in a class and make a positive impression 57.2% Islander and 2.6 percent Hispanic/Latino). Roughly 25 percent of surveyed students will graduate without any debt, and another 60 An alum from my college works there and suggests I consider them 54.9% percent will graduate with less than $40,000 in debt. They attend a campus Career Fair 45.6%

Main Survey Findings They post a position online with my university Career Services office 41.7% Many students start their job search six months before graduating or earlier (73.8 percent). Thus, employers should connect with They text/email me encouraging me to apply 43.3% students during students’ second-to-last semester where possible. Table 1 summarizes key factors that drive student interest in They post a position online to Monster, CareerBuilder or similar 23.1% choosing whether to apply to a company. Table 1: Factors that motivate students to apply to certain companies (Scale of 1 to 5) 36 How important are factors below when considering a job? Compensation. Most students (72 percent) indicated $40,000/year (Note: means are based on a scale of 1 (low) to 5 (high). The ‘Top Box’ column reports the percent of students rating items as ‘5’.) is a compensation level that would attract them to consider a job, Top Box % while 46.1 percent would consider $38,000. Offering compensation Position gives me good work-life balance 72.3% below $30,000 could be risky, as less than 5 percent of respondents will consider a job at that salary; however, $34,000 is enough to Position has good health and retirement benefits 67.7% attract 27.6 percent of students. Over half expect to earn between

Position has high ‘job security’ 67.0% $40,000 and $50,000 their first year, while only 14.3 percent expect more than $50,000. Company has great reputation; I would be proud to tell people 66.8% I work there Promotion. With respect to promotion, students are eager; 11.7 I would have good relationships with colleagues 66.2% percent expect to be promoted during their first year, and 60.1 percent expect to be promoted during their second year. Position is “daytime”; I would be off evenings/weekends 64.5%

Company’s culture fits my personality 64.6% Recommendations How can employers leverage these findings to more effectively Company values employee contributions 64.8% recruit recent college graduates? Below are some possibilities: Company tends to promote from within and offer transfer 62.9% opportunities Offer internships. Internships are the best way to connect with students. Internships are a good way for companies to screen I would respect and feel good working with my direct manager 63.6% potential talent and students who have positive internship Company has a good training program 60.4% experiences are likely to want to stay with their company after graduating. Company has strong/clear career path 60.3% Make personal connections. Today’s students use a lot of Company has good long-term strategic vision 58.6% technology. Indeed, the authors of this study periodically hear Position has high pay 52.7% comments about students being ‘tech savvy’. However, in our assessment, students are less tech-savvy and more text-savvy. Our Company offers good support for continuing education/development 51.8% survey data certainly indicates personal connections still trump Position would let me make a clear impact 52.1% virtual interfacing.

Job has flexible work arrangements 52.5% Seek long-term relationships. Contrasting concerns about job- hopping-millennials, over half of our respondents reported wanting Position involves international assignments 25.6% to work for only one company during their first five years out of Company has a lot of younger employees 17.5% college. Analyses from the Council of Economic Advisors and IBM reinforce these findings, showing that early in their careers, Table 2: Factors driving job and company preference (Scale of 1 to 5) Millennials are less likely to change jobs than GenXers were and tend to leave for the same reasons GenXers and Baby Boomers did. Mentorship by direct supervisors and clear career paths seem What environments attract students? Generally, students prefer to be attractive programs for students who largely seek companies offices with a corporate or large-company feel and family-owned where they can commit long term. Similarly, health and retirement companies. Small companies are also attractive to many students. A benefits, low employee turnover and company reputation should be smaller portion of students reported specific interest for working in highlighted in the recruitment process. manufacturing environments. Be flexible. Our findings indicate most new Wisconsin graduates What are students looking for in a manager? Almost 62 percent of have realistic expectations for a professional work schedule and level students prefer a manager who gives them some autonomy. Other of time commitment; however, findings are also consistent with highly desirable traits include offering challenges or expecting high general views that Millennials value work life balance. We suggest levels of performance (over 65 percent), having previously worked opportunities for social interaction and after-hours activities be in the same role (81.8 percent), and connecting them to more considered and highlighted when recruiting students. BV senior people in the company (87.7 percent). A high percentage of students (62.2 percent) prefer a manager that “treats me more like This paper was authored by: family than like an employee.” Bryan Lilly, UW Oshkosh (contact author – please address What locations attract students? A majority of students prefer questions to [email protected]); Gwen Achenreiner, UW La Crosse; to stay “close to home,” but 48.1 percent are willing to relocate Ethan Christensen, UW Superior; Bob Erffmeyer, UW Eau Claire; anywhere in Wisconsin, indicating students recognize the reality Mark Fenton, UW Stout; Les Hollingsworth, UW Platteville; Mary that relocation may be required. 41.8 percent of students would Jae Kleckner, UW Stevens Point; Peter Knight, UW Parkside; Jim Loebl, UW Green Bay; Darryl Miller, UW River Falls; Sam enjoy working in a major city, and 23.6 percent would enjoy Ranganathan, UW Green Bay working in a ‘rural or out of the way’ location. Hours. With respect to the amount of time students expect to work per week, 31.3 percent expect to take a “40 hours/week” job, 54.6 percent expect to work between 40-50 hours/week, and 12.2 percent expect to work more than 50 hours/week. So while students seek work-life-balance, they are not ‘work avoiders’. 37 Wisconsin Business Voice WMC at Home and on the Road

1 2

WMC hosts a bi-monthly roundtable with economists 1 and leaders of Wisconsin’s business sector. Sen. (R-Saukville) met with WMC’s 2 policy team at WMC’s headquarters. He is pictured here (center) with WMC’s Lucas Vebber, Scott Manley, Chris Reader and Jason Culotta.

The WMC Foundation Focus on Manufacturing 3 breakfast hosted more than 200 business leaders at The Pfister Hotel in Milwaukee. National Association of Manufacturers President and CEO Jay Timmons was the keynote. Panelists, pictured here, included Jan Allman, President, CEO and General Manager of Marinette Marine Corporation; Brad Crews, Chief Operating Officer 3 NAFTA & President, Agricultural Equipment Products Segment for CNH Industrial America LLC; and Irwin Shur, Vice President, General Counsel and Secretary of Snap-on Incorporated, Kenosha. The panel was moderated by WMC Foundation president Jim Morgan. Gov. Walker signed 2015 Act 180 into law. WMC’s director of health and human resources 4 policy Chris Reader, right of Gov. Walker, was integral in the passage of the bill. 4 WMC welcomed six new board members at its January meeting. Pictured here (L-R) are 5 1) Nate Cunniff, Senior Vice President – Business Banking at BMO Harris Bank, Brookfield; 2) Rick Parks, President/CEO at Society Insurance, Fond du Lac; 3) Robert Moses, President/CEO of Prairie du Chien Area Chamber of Commerce, Prairie du Chien; 4) Allen Leverett, CEO of WEC Energy Group, Milwaukee; 5) John Dykema, President/Owner, Campbell Wrapper Corporation, Circle Packaging Machinery, Inc., DePere and 6) Steven Booth, President/CEO of Robert W. Baird & Co., Inc., Milwaukee.

U.S. Sen. Ron Johnson (R-WI) spoke at WMC’s Business Day in Madison. He is seen here 6 with WMC board member Steve Loehr, Vice President of Kwik Trip, Inc.

5 6

1 4

2 5

6

3 8

38 Business Optimism Eroding over Weak National, Global Economy MC’s most recent economic survey reveals finding qualified Despite that, business leaders report finding qualified workers workers and rising health care costs remain top concerns for remains a challenge. Sixty-eight percent said they are having theW Badger State’s CEOs. trouble hiring employees; down slightly from 70 percent in June, In January 2015, Wisconsin business leaders were the most but still up from 64 percent a year ago. optimistic about the economy they had been since the end of the “Growing employer uncertainty could rival the lack of qualified Great Recession. One year later, that optimism has given way to applicants as an obstacle to job growth,” said Kurt R. Bauer, WMC concerns about the weak national and global economy. CEOs also president/CEO. “A year ago, it looked like Wisconsin and the continue to worry about the availability of qualified workers and nation had turned the corner economically. But it looks like that the rise of health care and regulatory costs. progress has been halted.” Bauer blamed factors beyond Wisconsin’s The survey of 304 top private sector business executives, conducted control for the slowdown, including a weak global economy, a in December and January, shows 52 percent believe Wisconsin’s strong U.S. dollar, which especially harms exporters, and federal economy will experience moderate growth in the next six policies that have steadily increased costs for U.S. businesses, like months, down from 67.7 percent in June 2015 and 81 percent in health care. last January. Thirty-nine percent say the U.S. economy will see To Bauer’s point, when asked in the survey to identify the “top moderate growth, down from 53 percent six months ago and 74 business concern facing your company,” labor availability was percent a year ago. number one (26 percent), followed by excessive regulation (15.7 A majority 62 percent of survey respondents rate the Wisconsin percent) and health care costs (15 percent). economy as “moderate,” 21 percent say it is “strong,” and just 1.6 Concerns expressed in the multiple choice portion of the survey percent say it is “very strong.” Eleven percent rated the Wisconsin were reinforced in the open-ended section. When asked “what economy as “weak” or “very weak.” The U.S. economy received do you believe is holding back the economy and job growth,” lower ratings with 37 percent calling it “weak” or “very weak.” one respondent said “too many entitlement programs, too much Forty-eight percent rated the U.S. economy as “moderate” and just regulation, out of control health care costs and reporting burden on 9.8 percent said it was “strong.” No one rated it “very strong.” employees.” Another said “We have the highest corporate tax rate Seventy-six percent of executives believe the U.S. is headed in the in the world.” “wrong direction,” while 79 percent say Wisconsin is headed in the If there is a bright spot in the survey, it’s that 82 percent of “right direction.” respondents report being profitable during the previous six months The pessimistic mood about the economy may slow hiring during and 85.5 percent predict they will make a profit during the next six the next six months. Forty-three percent of respondents said they months. BV plan to add staff during that period, down from 53 percent in June and 58 percent a year ago.

• Wisconsin’s Chamber of Commerce • Wisconsin Manufacturers' Association • Wisconsin Safety Council

Not a member? Join today! www.wmc.org/membership Batting 1000 for Wisconsin By Rick Schlesinger

he Milwaukee Brewers are proud to be part of what The next promise is to deliver the best fan experience possible. makes every summer in Wisconsin beautiful and a great The heart of the fan experience is the game, but there is much that entertainmentT option for those traveling from near and far. With we can do around the game to ensure our fans are entertained at the support coming from all over the region, more than 2.5 million highest levels. Recent surveys in publications such as The Sporting fans have attended Brewers games every season since 2007, an News and ESPN.com rated Miller Park “Major League Baseball’s accomplishment achieved by just seven other teams in baseball. Best Ballpark” and we strive to maintain that ranking. We look to More than 45 percent of our fans coming to Miller Park travel from outside the five county Milwaukee metro area, a testament to the passion Wisconsinites have for the game of baseball. We are proud to rank among Major League Baseball’s attendance leaders, and we know we have to work hard and be responsive to our fans to be worthy of their incredible support. Success is easy to imagine, but much more difficult to achieve. Baseball is a simple game at heart but complex to those who aspire to play at the highest level, and our corporate philosophy is much the same. This philosophy revolves around the four brand promises Mark Attanasio made to the fans on the day he became the Brewers owner. The promises are simple and straightforward; they serve as a guide to our long-term planning and execution, but those who work here know we need to execute these four promises with precision and creativity to earn a high grade from our fans and stakeholders. improve the experience every year with new projects, promotions and initiatives and take fan feedback very seriously. Changing The first promise to the fans is to field a perennially competitive tastes and preferences serve as a valuable guide in determining our team. The past year brought significant change to the Milwaukee plans for each season and we only understand these shifts through Brewers with a new Field Manager, Craig Counsell, and frequent surveys of our customers. From a new General Manager, David Stearns, working the creation of ballpark destinations like with ownership to create a process that will yield Brewers Community Foundation, The Selig Experience, the most creative long-term success. That plan revolves around the charitable arm of the Brewers, All-Fan Giveaways, new all-inclusive acquiring, developing and retaining young raised over $5 million in 2015, entertainment venues and the latest in talent to complement veteran talent already and over the past six years has retail items and concessions, we look to present on the Major League roster. It’s a provided over 1,100 grants totaling ensure the Miller Park fan experience is plan for sustainability, one that will lead to the dynamic and best-in-class. opportunity to field a perennially competitive nearly $13.7 million to nonprofit team. The 2016 season will continue showcasing organizations across Wisconsin. The third vow is to remain active in our young talent within the organization, as nearly half local community. As an organization, we of the Club’s roster changed through various moves over believe our activities off the field are as important the last year. The improvement is already drawing attention as the as what happens between the lines. We are extraordinarily grateful Brewers Minor League organization is widely regarded as one of for our fans’ support and aim to demonstrate our gratitude through the most improved in all of baseball. outreach activities around the five counties. Brewers Community

40 Foundation (BCF), the charitable arm of the Brewers, raised commitment to fielding a perennially competitive team, delivering over $5 million in 2015, and over the past six years has provided an incredible fan experience, remaining active in the community over 1,100 grants totaling nearly $13.7 million to nonprofit and being a great place to work for baseball talent and business organizations across Wisconsin. In demonstration of our promise, executives alike shapes our decision making and helps us maintain all uniformed Brewers players, their families and the Club’s front the high standard our fans have come to expect from us. This is a office staff voluntarily made contributions through time and philosophy we live and breathe, and while it may seem complex, at financial resources to Brewers Community Foundation in 2015 and its core it is about our resolve to be the best we can be for our fans. regularly participated in BCF outreach events. BV Finally, we promise to be an organization where people want to Rick Schlesinger is the Chief Operating Officer of work and where employees thrive. We strive to be among the Milwaukee Brewers Baseball Club best places to work in Milwaukee and in all of baseball, and pride ourselves on our low turnover rate in our business operations. By focusing on best practices and supporting employee growth through training and career development opportunities, we ensure a strong corporate culture that emphasizes both personal and Club-wide success. We are also deeply committed to diversity and to being a workplace reflective of our community. Our respectful and fun work environment encourages creativity and the free exchange of ideas, which translates into success on and off the field. We recognize that our goals are not easily achieved, but our path to success begins with our commitment to the values and promises we have made to the fans and stakeholders. Respect is not just given; it is earned, and we work every day to be worthy of the extraordinary support our fans have consistently shown us over the years. Our Wisconsin’s Workforce Challenges

By Sen. (D – Evansville)

s a member of the Governor’s Most people, especially young adults, do not follow labor Council on Workforce Investment markets and are unaware of the skills and training employers IA am keenly aware that employers are are seeking. Thus, some schools are proactively reaching out facing a shortage of workers in some to children and offering them an education in high-demand occupations. According to Department careers. I have the honor of representing a majority of the of Workforce Development projections, city of Beloit. The Beloit School District has aggressively which account for new and replacement sought to provide options for children interested in pursuing positions across all industries and occupations, 46,000 technical careers. They created the REACH Advanced Career positions will remain open due to an aging workforce through Education program. The program gives students a chance 2022. Faced with demographic projections suggesting the to explore career options through work-based learning and future workforce may not be sufficient to support growing youth apprenticeship experiences. The program is based on industries, it is imperative we develop a plan to address our career clusters and identifies pathways from high school state’s present and future workforce needs. to technical colleges, universities, apprenticeship programs Professor Morris Davis of the University of Wisconsin and the workplace. The program allows students to see the Business School concluded that between 2008 and 2012 relationship between what they learn in school and how it can Wisconsin lost an average of 14,000 college graduates per lead to a career. year. We must stem this export of talent. In order to do this To prepare workers for the workforce we have to invest we will need to develop innovative strategies that keep and additional resources in all levels of our educational system. attract skilled workers. Additionally we need to capitalize Public schools are struggling and most do not have a in areas where Wisconsin businesses lead the way such as comprehensive training program in place like Beloit. Our medical software development, stem cell research and cutting technical colleges still have waitlists for high-demand edge manufacturing. programs. Investing in our public schools, technical colleges State programs such as Fast Forward work with employers and universities is one component of the Senate Democrats’ to identify labor shortages and implement training programs Badger Blueprint – an agenda Senate Democrats are putting to meet the demand. The Fast Forward program has three forward that includes a wide range of new ideas and proven components: solutions to create economic opportunities and help move Wisconsin forward. 1. Grants to support projects that bring together school districts, technical colleges and businesses to Our labor imbalance is an area Democrats and Republicans provide high school pupils with industry-recognized should be able to solve together. I look forward to working certifications in high-demand fields. with a wide range of professionals to ensure the government is doing its part to help provide employees with the education 2. Grants to enhance employment opportunities by and training Wisconsin businesses need to succeed in the providing employer-driven training for persons with competitive world market. BV disabilities. Senator Janis Ringhand represents Wisconsin’s 15th Senate 3. Grants for the Wisconsin Technical College System District to reduce waiting lists for enrollment in programs and courses in high-demand fields.

Fast Forward also utilizes a Labor Market Information System, which tracks job vacancies, links the unemployed to vacancies and provides information on job openings to key individuals such as guidance counselors.

42 Wisconsin’s Workforce Challenges

By Rep. Warren Petryk (R – Eleva)

s Chair of the Assembly technical education courses in our high schools, we will ACommittee on Workforce provide these future members of the workforce with the Development and member of the hands-on experience that encourages them to seek jobs Governor’s Council on Workforce in these fields after graduation. That is why I co-authored Investment, I have the unique Assembly Bill 748, with Sen. Sheila Harsdorf (R – River privilege of hearing from employers, Falls), which would provide matching state grant dollars to entrepreneurs and investors from schools to buy technical education equipment that is up-to- across our state regarding their most critical concern – the date with today’s advanced technologies. challenge of finding the necessary skilled workers they need to Remaining competitive in the emerging global economy will run successful businesses. In Wisconsin, our challenge is the remain challenging. But private industry partners are taking demographic reality of our aging and retiring workforce along actions which complement initiatives Wisconsin Legislators with a flat to declining number of young people entering the have undertaken to create a better business climate these past workforce in skilled trades. five years. The Legislature has cut unnecessary regulation that That being said, I remain optimistic we are accomplishing stifles innovation and investment; held the line on property, objectives to assist in rising to this challenge. Wisconsin must income and sales taxes; simplified the state’s tax code; reduced have a creative, multi-faceted approach to address the complex bonding; promoted small business growth; increased funding issue of the workforce shortage. A solution which will allow for the state’s successful Fast Forward program; created more us to nurture and train the highly-skilled, highly-competent, engineering programs at universities; froze tuition for four highly-trained workers today that will be necessary for the years; and expanded workforce training, apprenticeship grants jobs of tomorrow. We must position ourselves as flexible and and career and technical education grants to K-12 schools by nimble to remain globally competitive and be proactive to over $26 million, to name a few initiatives. attract and retain workers in these fields. Even with all the positive steps the Legislature has taken Wisconsin must provide a collaborative and inspiring to improve our state’s workforce and connect employers environment for positive action including encouraging young with skilled employees, there is always more to be done. people to become passionate about careers in the trades. We My continued focus will be on educating our future are focusing on developing a talent pipeline with engaged workforce as well as providing necessary additional training partners in the private-sector who are collaborating with our for those currently in the workforce or looking for gainful local high schools and technical colleges. Developing our employment. I will continue my work to increase technical workforce so employers can be as competitive as possible education opportunities in our high schools with the goal begins at the ground level – our K-12 schools and technical of encouraging our young men and women to seek jobs in colleges. Schools must emphasize academic and career our skilled trades. This is the future of our state and a vital planning, dual enrollment programs, career academics, sharing part of how we can remain competitive in our increasingly best practices and integrated learning. technologically advanced world. BV Our state leaders and schools must learn to connect students Representative Warren Petryk represents Wisconsin’s 93rd to the world of work at earlier ages through job fairs and Assembly District apprenticeship programs. By encouraging participation in

43 Wisconsin Business Voice CHAMBER CORNER

Tax on Sales by Non-Profit Organizations By Ann Smith

ssembly Bill 553 addresses an outdated occasional sales statute that affects Chambers of Commerce, churches, charitable organizations,A booster clubs and other non-profits. Most non- profits rely on fundraising events, promotions, silent auctions etc. to support their organization financially as well as enable them to make donations to their local community and support the population they serve. The current sales limits are set quite low by today’s standards. Non-profits are required to remit sales tax on taxable sales over $25,000 or sales on more than 20 days per year. Non-profits are also required to remit sales tax on sales of tickets to events with entertainment when over $500 is paid to all entertainers of an event. If a non-profit – of any size – relies on more than 50 percent of their overall operating budget on fundraising, the organization can easily go above these requirements and thus have the burden of constantly watching ‘every nickel and dime’ raised. Likewise, the $500 limit of securing any type of entertainment for an event is Ann Smith (right) testified the Senate Committee hearing on tax law with Jason Culotta, WMC’s director of tax and transportation policy. unrealistic in today’s market. Non-profit organizations contribute to a community by providing a service or program that no other entity may be fulfilling. facilities for events and fundraising activities. Local events bring These events benefit our community in so many ways. We work people to communities who may spend money in that community with our local businesses and local governments to enhance our at restaurants, hotels and retail stores. Whether a little league communities – businesses can receive recognition with their logo tournament, fun-run or a concert in the park, the event requires on a fundraiser t-shirt or momento; local governments partner staff and volunteer resources to execute a successful event or with us by creating a safe environment for an event or providing program. Those resources aren’t free of charge. WMC has taken the lead in supporting the passage of Assembly Bill 553 which will change the current occasional sales statute as CHAMBER FUN FACT follows: 1) Increase the taxable dollar threshold for non-profit Ripon organizations from $25,000 to $50,000 Birthplace of the Republican Party 2) Increase the days of sale threshold for non-profit A decision made by a small group of Ripon citizens in organizations from 20 days to 75 days and, a Little White Schoolhouse in 1853 changed the course of our nation’s history. Acting on their convictions 3) Increase the $500 entertainment limit to $10,000 and having the courage to stand firm to their beliefs, these men and women of Ripon voted to form and Thanks to WMC and the Legislators who support this bill and become members of a new political party that recognize the importance of it for our non-profits and the benefits would be called “Republican.” The term Republican was significant; it indicated what they wished to to our communities. BV symbolize – “Res Ann Smith is the Executive Director for the Sun Prairie Chamber publica,” the common of Commerce good, equality. The birth of the Republican Party allowed this group of individuals to organize and fight against the spread of slavery.

44 AQUA-FILTRATION SERVICE (AFS)

Machining Centers/Grinding Units Removes all oils and the negative effects of oily machining fluid, including tacky fluid, oil misting, odors and dermatitis from bacteria caused by oil contamination. Removes suspended metal fines and solid particulate down Mini Aqua-Filtration Unit to 1 micron, thereby increasing tool life and providing a Model 1186 better part finish from particulate removal. (Available for Models 2725 & 2740) Increases coolant bath life and eliminates coolant change outs, reducing down time, coolant purchases and waste disposal while increasing production.

Eliminates continuous treatment methods and product purchases such as biocides oil skimmers and absorbent pads.

Partnership Built for Members in Wisconsin Mop Water Recycling

Removes all oils and suspended solids from used mop water solution, while maintaining Heritage-Crystal Clean, LLC cleaning chemistry levels. ‘Recycled’ solution allows for continued use in mopping and floor Check out our website; cleaning operations. www.crystal-clean.com Recycling mop water or call 877-938-7948 and solutions provides soap purchase savings and ask for Dean Popovich eliminates the need for for more information on our services and discharge or disposal. member only discounts and pricing.