January 2012: Issue 1 WISCONSIN

Official magazine of Wisconsin Manufacturers and Commerce

Courage Under Fire An exclusive interview with Governor Scott Walker

Inside:  Manufacturers’ Tax Credit Democracy is a Fragile Institution Rep. Barca: Focus on Job Creation Tackling the Workforce Paradox OilRailAdWMC8.5x11 12/13/11 4:08 PM Page 1

Proud Member OilRailAdWMC8.5x11 12/13/11 4:08 PM Page 1

WISCONSIN Welcome to Wisconsin Business Voice Business Voice As a business leader in Wisconsin, you know our state’s future success  In this issue is dependent on job creators like Fiscal Sanity Begins or Ends in Wisconsin you. WMC shares that opinion and is committed to Kurt R. Bauer, WMC’s new president, talks about the high stakes of 2 intimidating politicians who show courage in the face of adversity. making Wisconsin the most competitive state in the nation for business and industry. The value of the WMC Welcomes Incoming Board Chair Todd Teske, Chairman, President & CEO of Briggs & Stratton free enterprise system, and its positive impact on 3 Corporation, shares his insights of the comparison between running a our collective quality of life, is a story that needs business and coaching a team. to be told with regularity to elected officials, the Democracy is a Fragile Institution media, and the general public. Business Voice is WMC Senior Vice President James Buchen talks about the real threat our latest vehicle for delivering that message. 4 of recall elections in Wisconsin today. You probably know WMC for our issue and political Business Day in Madison The 2012 Business Day in Madison event will be February 16. Energy advocacy efforts in support of pro-business, 5 expert Robert Bryce, economist Todd Buchholz, and communications free market ideals. WMC also runs programs consultant Frank Luntz headline this year’s event. that teach high school students and educators Competitive Edge: Wisconsin Takes Aim at Regulations about Wisconsin’s economy, we are the leader in Scott Manley, WMC’s Environmental and Energy Policy Director, workplace safety training, and we help advance 6 talks about the importance of the rulemaking reforms to Wisconsin’s economy. Wisconsin’s local chambers of commerce in their roles as community business leaders. Where are the Jobs? WMC Foundation President Jim Morgan dissects the workforce skills This new quarterly magazine aims to help 7 gap and introduces a new focus for WMC. businesses meet the challenges of our changing Manufacturers’ Tax Credit marketplace. We will update you on current issues WMC’s Director of Tax and Transportation Policy, Jason Culotta, at the state and federal levels, offer insight on what 8 details the newly passed Manufacturers’ Tax Credit. other businesses are doing to stay competitive, and WMC: 100 Years of Winning for Business provide strategy and trend analysis – all designed to WMC celebrated 100 years in 2011 and presented a U.S. Chamber 9 of Commerce study that will help shape the future of business in help you stay ahead in this global economy. Wisconsin. Drop me a note if there is something you would Wisconsin Manufacturer of the Year Award Nominees like to see covered in an issue of Business Voice or The 24th Annual Wisconsin Manufacturer of the Year award program if you have comments on anything you see in this 11 announces the 2011 nominees. magazine. I would love to hear your feedback! Feature: Governor Walker Walks the Line Governor Scott Walker has seen a tumultuous first year in office. 12 He talks candidly about the protests, the victories, and the potential for recall. Business Best Practices in Environmental Sustainability Springs Window Fashions in Middleton is one of Wisconsin’s Katy Ryder Pettersen 16 companies leading the way to environmental sustainability and saving Editor, Wisconsin Business Voice a lot of money by doing so. [email protected] WMC and UW: International Internship Program WMC’s intern program reaches across the ocean to work with 19 executives from China. STEMing Our Workforce Rebecca Hogan, WMC’s Director of Health and Human Resources 20 Policy, focuses on science, technology, engineering, and math to lead in recession recovery. Wisconsin Business Voice is the official publication of Wisconsin Manufacturers and Commerce. This publication is proudly The Importance of a Safety Audit printed on Wisconsin paper. Published quarterly by Wisconsin Many companies may have parts of safety programs in place, but a Manufacturers and Commerce with editorial and executive offices at 22 thorough safety audit will help to ensure those parts equal the whole. 501 E. Washington Avenue, Madison, WI 53703, (608) 258-3400. Postmaster: send address changes to Wisconsin Manufacturers and Job Creation and Job Training Demand Urgent Focus Commerce, P.O. Box 352, Madison, WI 53701-0352. State Representative Peter Barca (D-Kenosha), Assembly Minority Kurt Bauer, WMC President/CEO 24 Leader, shares his insights on Wisconsin’s focus on job creation. Katy Ryder Pettersen, Editor ([email protected]) Jane Sutter, Designer ([email protected]) Fiscal Sanity in the United States Begins or Ends in Wisconsin Kurt R. Bauer, WMC President/CEO

he stakes in the effort to recall who voted for the reform. The second, and the TGovernor Scott Walker and reason national labor unions have gotten involved, Republican members of the state is to scare other politicians anywhere around senate are higher than most realize. the country who may have otherwise considered There is more to lose than reversing following Walker’s lead. the remarkable progress we have All but a handful of state governments face the made by balancing the state budget same budgetary shortfalls Walker confronted and improving Wisconsin’s business when he took office last January. And just like in climate. Wisconsin, the easy choices are gone. Politicians are left with only tough decisions that strike at the Don’t get me wrong. Protecting the heart of the ideological war being waged in the fiscally responsible and business- United States to decide the proper size and scope of friendly reforms enacted over the government. last 12 months is critical. But what is happening in Wisconsin has much broader implications The Tea Party was the opening salvo. Last winter’s for our nation. massive protest rallies in Madison, the Occupy movement, and now the Walker recall are the While the recall organizers claim a litany of inevitable counterattacks. trumped-up grievances against Governor Walker and GOP lawmakers, the real sin in their eyes was Cut government or increase taxes to protect it? The ending compulsory public sector union membership public sector unions and those who benefit from and state-administered dues collection. government’s largess want to take the former off the table by demonstrating what happens to those That reform was like Delilah cutting off Samson’s who try. hair. It removed the unions’ source of strength by eliminating the guaranteed revenue that was used That’s why the stakes are higher than simply to support the election of pro-union politicians. protecting the gains that have made Wisconsin Those grateful politicians then negotiated salary more competitive by eliminating chronic budget and benefit packages with the very union leaders deficits and encouraging businesses to stay, grow, who helped get them elected. and perhaps even relocate here. It was a cozy circular relationship. There was The federal government owes $15 trillion and that something in it for everyone, except taxpayers doesn’t even include the debt carried by state and who weren’t really represented at the negotiating municipal governments or their pension funds. The table, but were stuck with the tab for the rapid cost of bloated government at all levels and the debt expansion of government caused by the mutual it has incurred are a major drag to America’s global back-scratching. competitiveness and private sector job growth. Anyone who doesn’t recognize that has failed to Ronald Reagan, the patron saint of limited comprehend the lessons of the European debt government, advocated “starving the beast.” In crisis. other words, limit the growth of government by choking off its funding. Walker’s reform did We need elected leaders who can be bold and precisely that by taking money and power away courageous - two traits already not often associated from Big Government’s strongest ally; the public with politicians. Walker is the role model. But, the sector unions. recalls are designed to intimidate politicians into being obedient to the power of the public unions, No one should be surprised by the unions’ tantrum- which will make confronting our national debt like backlash. The recall effort has two objectives. crisis all the more difficult. BV The first is to punish Walker and the lawmakers

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2 WMC’s New Coach: Todd Teske is Ready to Rally the Team By Becky Nelson

riggs & Stratton Corporation times. “Being open and honest really BChairman, President and CEO helps us move forward as a team,” he Todd Teske has made many solid said. business decisions that have ensured his Like many Wisconsin companies, company’s success. Briggs & Stratton has remained Still, so much depends on the weather. conservative, building up reserves on the Last year’s snowfalls and hurricanes balance sheet. helped drive sales for the Wauwatosa- “There are a lot of CEOs, me included, junior, a swimmer named to the based producer of small gasoline who would love to see demand increase Wisconsin Scholastic All-America engines, generators and lawn and add capacity here in the United Team. Their son, C.J., is a freshman equipment. At the same time, a pro- States. The problem is, we are all who plays basketball and baseball. In business mindset in Wisconsin restored competing on a global platform, and addition to participating in sports, the hope for many manufacturers. you’ve got to make sure you’re investing family rarely misses seeing the Packers play or attending other games around As he takes the reigns as Board Chair of in places that are most attractive for the state. BV Wisconsin Manufacturers & Commerce business. That’s where WMC can help,” later this month, Teske wants to create a Teske said. Nelson is a Madison-based better climate for Wisconsin businesses, He is encouraged by the “tremendous freelance writer. and in turn, a better life and greater amount of energy” that WMC President opportunities for its residents. /CEO Kurt Bauer brings. “Having a healthy business environment “Kurt has built on a lot of good work WMC Officers is so important to how the state that recently retired WMC President Chair operates,” he said. “Lawmakers and & CEO Jim Haney has done over the Thomas J. Howatt regulators need to hear about what’s years and has generated renewed interest President & CEO happening and how they can help us in WMC,” said Teske, who served on Wausau Paper Corporation manage our way through challenges.” the search committee. Vice Chair Todd J. Teske Teske joined Briggs & Stratton as Teske joined the WMC Board of Chairman, President & CEO assistant controller 15 years ago, Directors to be an advocate for major Briggs & Stratton Corporation after nine years as a certified public corporations facing global pressures as President Kurt R. Bauer accountant at Arthur Andersen. well as the small businesses that are vital President/CEO He earned his MBA and worked his to the communities they serve. Wisconsin Manufacturers and Commerce way up through the ranks. He became In addition to his work with WMC, Senior Vice President James A. Buchen chief executive when John Shiely retired he is the co-chair of Innovation in Wisconsin Manufacturers and Commerce in October 2010. Milwaukee (MiKE), an effort to create Vice President A lifelong athlete who played baseball a design, innovation and technology James R. Morgan and basketball at Green Bay Southwest cluster. He serves on the boards of Wisconsin Manufacturers and Commerce High School and coached his son’s Badger Meter, Inc.; Junior Achievement Secretary of Wisconsin, Inc.; the Boy Scouts Tod B. Linstroth teams, Teske compares his leadership Senior Partner & Past Chair and Member of style to team sports. of America – Milwaukee Chapter; Management Committee Lennox International, Inc.; MRA – Michael Best & Friedrich LLP “A team has to have trust. If someone The Management Association; The Treasurer can’t trust me to do what I’m supposed Association for Corporate Growth; Timothy L. Christen to do, the team isn’t as strong as it Chief Executive Officer and the Outdoor Power Equipment Baker Tilly Virchow Krause, LLP should be,” he said. Institute. That has meant writing a company He and his wife, Kim, have been For a complete listing of WMC blog and hosting small group lunches married for more than 21 years. Their Board Members visit to maintain transparency during tough daughter, Taylor, is a high school www.wmc.org

Wisconsin Business Voice 3 Democracy is a Fragile

Legislative ByInstitution James Buchen, WMC Senior Vice President Victories in taxes, improvements in education, and WMC’s 100th Year more efficient government. A minority opposed this legislation. Democracy Manufacturers tax credit works when the minority accepts the This tax credit nearly eliminates will of the majority. In this case the income taxes paid on income minority took the position that they generated from manufacturing in were “right” so democracy could not be Wisconsin. The plan will dramatically allowed to function on this issue. They reduce income tax liability for worked to block the functioning of the manufacturers and make Wisconsin legislature until they got their way. an attractive place to create high-wage Fortunately, the majority held firm and manufacturing jobs. hile most of us take the basic did not allow Wisconsin government functioning of our democratic Controlling wage and W to descend into chaos. While the issue institutions for granted, the reality is benefit spending of collective bargaining for public successful democracies are relatively employees is important, and there are This historic comprehensive collective rare in the world today. And no country strong feelings on both sides, what was bargaining reform will help state and in human history has maintained a local governments control spending, and is really at stake here is the basic democratic form of government for as and will diminish the strength and functioning of democracy in Wisconsin. long as we have in the United States. power of public employee unions in Unfortunately, the campaign to disrupt The reason is that it is hard to get a Wisconsin. the normal functioning of Wisconsin group of people to accept the idea that government continues with recall ncouraging reinvestment in a majority of 51 percent of them can E elections targeting Governor Walker impose their will on the remaining Wisconsin and certain Republican Senators. 49 percent, even if the minority is Now there is a 100 percent exclusion The recall mechanism was put into fundamentally opposed to the ideas of for capital gains reinvested in a the Wisconsin Constitution in 1926 the majority. As a result, democracies Wisconsin business within 180 days to allow voters to remove someone are hard to start and even harder to of the sale of the asset generating the from public office who had engaged gain, and a 100 percent exclusion for maintain. in some form of misconduct. At the gains from the sale of a Wisconsin To see how basic democratic institutions capital asset held for at least five years. time, the requirement that petitioners can be stretched to the breaking point, collect signatures equal to 25 percent Job creation tax credit one need look no further than recent of the voters in the previous election, expansion events here in Madison. When the to trigger a recall, was a significant legislature and the Governor attempted threshold. Today, in the era of instant This expands the job creation tax to reform state collective bargaining credit to $4,000 per new employee for communication and paid political laws to rein in public employee unions, companies with less than $5 million in operatives it becomes relatively easy to payroll and $2,000 per new employee the basic functioning of our democracy identify enough disgruntled voters to for companies with more than broke down. The public employee meet the threshold. unions and their allies in the legislature $5 million in payroll. That’s why the national unions and and elsewhere stormed the Capitol and their Wisconsin allies are pursuing ax deduction for s brought the normal functioning of the T HSA recall every chance they get. They are legislature to a halt. They occupied There is now state tax deductibility trying to disrupt orderly democracy and the Capitol, threatened legislators, for health savings accounts to help intimidate elected officials in an effort employers and employees control disrupted meetings, blocked entrances, to thwart the will of the majority. If health care costs. and shouted down speakers. Then a they succeed, one has to wonder if we minority of sympathetic legislators fled truly have a democracy or something Comprehensive lawsuit the state to prevent a vote on the bill. reform closer to mob rule. We need to stand up This orchestrated campaign of for Wisconsin and stand with our duly These comprehensive reforms ensure disruption was designed to reverse the elected Governor and Senators. We businesses are protected from frivolous basic democratic concept of majority lawsuits. simply cannot allow a vocal minority, rule. In this case a majority of the through threats and intimidation, rule legislature, elected by a majority of the the day. For more victories, visit www.wmc.org people, were attempting to pass a bill It’s time to get involved, contribute, and they felt responded to the will of their constituents, most of whom want lower most importantly, vote! BV 4 Business Day in Madison February 16, 2012 n 2012, America will decide if we stay “Hope and Change” Ithe course or go in a new direction. by Todd Buchholz Dominating the landscape will be the Hope and Change were the two watchwords economy, the price of energy, and the of President Obama’s totemic 2008 election elections – the three E’s of America’s future. campaign. Today, with public debt exceeding This year’s Business Day in Madison event $14 trillion, a potential trade-war with China will give business leaders from all sectors of on the horizon and - across the Atlantic - the the economy the opportunity to hear from Eurozone staring into the precipice, the United experts and share ideas to shape the debate. States economy needs a large dose of both. Unfortunately for Mr. Obama, the political environment in which he now operates is less than propitious for a man with little more than 12 months to convince the American electorate that he has what it takes to save the economy. Since the 2010 mid-terms, the Republican Party has controlled the House of Representatives, whilst Democrat control of the Senate hangs by a thread. An extraordinary and dangerous row over White House plans to raise the debt ceiling in July of this year brought the world’s largest economy to the brink of bankruptcy, whilst other major spending programs including the president’s health care bill and his jobs bill have run into major political difficulties. Beyond Capitol Hill, the anti-debt backlash known as the Tea Party movement has grown from a widely dismissed coterie of right-wing ‘fanatics’ into a major political force that any political leader dismisses at their peril. Todd Buchholz, former Director of Economic Policy at the White House, and economics professor at Harvard University is a featured speaker at Business Day in Madison. Excerpt taken from transcript, HJS Event: “Obama’s America: Change or Chaos?” October 20, 2011. Todd Buchholz has written articles for the New York Times, Wall Street Journal, Forbes, and Reader’s Digest. His editorials in The Wall Street Journal correctly forecasted the 2001 slowdown in the United States.

To Attend “Five Truths about Climate Change” oin us at Business Day by Robert Bryce It’s time to acknowledge five obvious truths J in Madison at the about the climate-change issue: Monona Terrace Community 1. The carbon taxers/limiters have lost. 2. Regardless of whether it’s getting hotter or and Convention Center on colder – or both – we are going to need to produce a lot more energy in order to remain Thursday, February 16 to productive and comfortable. hear more from energy expert 3. The carbon-dioxide issue is not about the United States anymore. Robert Bryce, economist 4. We have to get better – and we are – at turning energy into useful power. Todd Buchholz, and 5. The science is not settled, not by a long shot. It’s time to move the debate past the dogmatic view that carbon dioxide is Frank Luntz, pollster and evil, and toward a world view that accepts the need for energy that is cheap, communications consultant abundant and reliable. Robert Bryce, Senior Fellow at the Manhattan Institute, energy expert, author, and and author. journalist, is a featured speaker at Business Day in Madison. Excerpt taken from “The Wall Street Journal, Opinion” October 16, 2011. Robert Bryce’s latest book, www.businessdayinmadison.com “Power Hungry: The Myths of ‘Green’ Energy and the Real Fuels of the Future” (PublicAffairs (608) 258-3400 2010), recently issued in paperback.

Wisconsin Business Voice 5 REGULATION Competitive Edge: Wisconsin

ByTakes Scott Manley, WMCAim Director at of Environmental Regulations & Energy Policy

issue new regulations without a single impacts on specific sectors of our elected official having to approve. In economy, impacts on jobs, and impacts fact, state agencies were able to pass to our overall economic competitiveness. 99.9 percent of regulations into law over The law also requires agencies to the past 20 years without intervention quantify a regulation’s benefits, and by the Legislature. consider alternative approaches to The days of unabated agency regulations regulation – including the alternative to are over. not regulate at all. When agencies such as the Department Forcing agencies to consider the costs of Natural Resources or Department and benefits of regulation will lead to of Workforce Development better public policy. It will also ow much do regulations matter to want new regulations, give lawmakers and businesses? H they must now “These reforms the general public When WMC surveyed CEOs on first get the more in-depth this topic last year, 97 percent said permission are a game changer for information Wisconsin regulations are more costly of the when than other states, and 72 percent said Governor. Wisconsin’s regulatory climate, evaluating the our regulations significantly impact their If the and will likely serve as a appropriateness ability to retain employees. Governor template for other states of proposed rules. The high cost of regulation is not disapproves, the Governor Walker and unique to Wisconsin government. regulation cannot to follow.” the Republican Legislature Federal agencies like the Environmental move forward. are acutely aware that regulations Protection Agency and the National Placing an elected official like the matter. They understand how the Labor Relations Board have recently Governor directly into the rulemaking cost and complexity of regulations adopted rules that will add significant process will afford voters a greater profoundly impact the daily operations cost, uncertainty, and complexity to opportunity to voice concerns about of businesses, and they’ve responded the day-to-day operation of American proposed regulations before they with an aggressive set of reforms. businesses. become law. Transparency, accountability, and What can be done to rein in Another key feature of Wisconsin’s oversight are the “new normal” for regulations and give lawmakers a better regulatory reform law will give Wisconsin’s regulatory climate. BV understanding of the related costs? lawmakers and the general public a Governor Scott Walker and Republican much better understanding lawmakers enacted a bold package of of the cost of proposed regulatory reforms earlier this year that regulations. Every new hold unelected bureaucrats accountable regulation will now require a to the law with enhanced transparency detailed cost-benefit analysis and oversight in the rulemaking process. that examines the regulation’s These reforms are a game changer for impact on our economy. Wisconsin’s regulatory climate, and will Prior to Act 21, agencies gave likely serve as a template for other states very little consideration to to follow. the cost regulations have on The new law, known as Act 21, the businesses and individuals places the Governor in the position of who were forced to comply. regulatory gatekeeper by allowing him The law now requires a robust to veto new regulations. analysis of the economic cost to businesses, including WMC’s James Buchen, standing, third from left, at a recent In the past, agencies were allowed to bill signing.

6 ByWhere Jim Morgan, WMC are Vice President the & WMC Jobs? Foundation President

manufacturing facilities. I will never words, if all the manufacturers shut forget the exchange that took place down tomorrow, we would be out 1.1 between one of our educators and a million jobs and $53 billion in earnings. line worker during a plant tour. The That data is well worth considering in educator had watched the machinist career decision-making. for an extended period of time and No one should be discouraged from eventually engaged the employee in their passion. However, equally conversation. She asked, “How can you important, no one should be deprived do this EVERY day?” Without directly of critical information that leads to a answering her question, he politely good life decision. As parents, business asked, “What do you do?” She said, “I people, educators, counselors, and isconsin, along with much of am a 7th grade teacher.” With a slight friends we would be well-served in Wthe nation, currently faces a grin, he responded, “How can you do advancing today’s manufacturing as a workforce paradox – unemployment THAT every day?” career choice for today’s job seekers. rates higher than most current workers The small group of educators that can remember, and manufacturers So now when people ask, “Where had gathered to hear the discussion all are the jobs?” You can be prepared to limited by their ability to find skilled chuckled, but it drove home a point answer, “Manufacturing!” BV workers. The mismatch between what that none of them will ever forget. Not people want to do, or what others have everyone has the same pursuits, and we told them they should do, and the needs should celebrate that diversity rather of the current workforce do not jibe. than try to force everyone to conform We all know the story. In high schools, to our interests. That machinist and Workforce Skills a key measure of success is the percent that 7th grade teacher were both Shortage: Be Part of of students going to a four-year extremely proud to be doing what they the Solution institution, ignoring the fact that many were doing. And neither would have suggest only about 30 percent of the traded their career for the other. This is he WMC Foundation jobs will require a four-year degree. As absolutely critical for parents, educators, parents, we are guilty of more likely and counselors to keep in mind as they has been surveying equating “success” with a four-year help young people blaze their future businessesT across Wisconsin degree (in anything!) than we are with career path. to determine common gainful employment in a good-paying Every young person, in fact every causes and solutions to the career that our children are passionate person, should be allowed to follow their workforce paradox. Join us about. passion. I firmly believe that, and have on Thursday, March 15 at In changing the conversation about seen it in my own kids. However, we manufacturing, we all need to tell owe it to each other to tie that passion Monona Terrace Community stories that enlighten the citizenry about to reality when it comes to education and Convention Center in careers in one of Wisconsin’s leading and careers. Young people, especially, Madison for the Workforce need to be aware of the viability of the business sectors – a “super-sector” – Skills Shortage Conference, manufacturing. career they are pursuing. What are the employment projections for my career and be part of the solution. One of the WMC Foundation’s most choice? What education do I need to get successful programs is Business World. there? What will it cost? Will it pay off? Visit www.wmc.org for more Over the past 30 years, it has introduced information and to register. more than 14,000 high school students A recent study done by the National and 2,500 educators from around Chamber Foundation identified the Wisconsin to business, entrepreneurism, manufacturing sector as being directly or and our state’s economy. For educators, indirectly responsible for 35 percent of the experience includes time in all employment in Wisconsin. In other

Wisconsin Business Voice 7 TAX CREDIT Wisconsin to Benefit from anufacturers ax redit MBy Jason Culotta, WMC Director of Tax and’ TransportationT C Policy

By using the existing definition under the federal tax code for “qualified production activities income,” manufacturers will have greater certainty determining the amount of the credit. Tax Credit Details There will be less need (and less ability) The WMC-backed for state taxing authorities to tinker with manufacturers’ tax credit, which the calculation of the credit. will be phased in over a period s the result of efforts by WMC and of four years beginning in Apro-jobs policymakers, a new tax I have already begun to receive 2013, will virtually eliminate credit will nearly eliminate the state tax calls from businesses interested in the tax on income derived burden for many manufacturers. information on who can claim the from manufacturing activity in credit. The credit will be available to Wisconsin has long been home to a Wisconsin. corporations, individuals, estates, and strong manufacturing sector. In fact, trusts, as well as members, partners, The credit will be phased in as Wisconsin and Indiana consistently top and shareholders of pass-through follows: national rankings as the strongest states entities such as limited liability for manufacturing. companies, partnerships, and tax option 2013 1.875 % Given that manufacturing is truly S-corporations. the “super-sector” of employment in While we would like to see the Wisconsin, strengthening this core pillar credit take immediate effect, budget of our state economy should top the 2014 3.75 % constraints on the state mean it will be list of agenda items for policymakers. implemented over a four-year period. Thankfully, Governor Scott Walker and In 2013, manufacturers will be able to legislators made sure improvements in claim a credit equal to 1.875 percent 2015 5.526 % tax policy, tort reform, and reducing the of their qualified production activities regulatory burden were all adopted this income derived from Wisconsin year. manufacturing facilities. The amount 2016+ 7.5 % The new manufacturers’ tax credit was of the credit increases in 2014 and 2015 drafted by Senator Glenn Grothman to 3.75 percent and 5.526 percent, (R-West Bend) and Representative respectively. Finally, in 2016 the credit Dale Kooyenga (R-Brookfield) and will be fully phased in at 7.5 percent. Unused tax credit amounts could included as part of the pro-jobs reform be carried forward up to 15 years Any amount of the credit not used to agenda. The goal of the credit is to not to offset future tax liabilities. offset state income or franchise taxes tax employers for their manufacturing may be carried forward and used to The credit will reduce personal activity in Wisconsin. Using an existing offset future tax liabilities for up to and corporate income tax definition in federal law, policymakers 15 years. collections by: were able to tie the tax credit to in-state  facilities. Adopting this tax reform is a big victory $10,100,000 in fiscal year for manufacturing and will ultimately 2012-13; When fully phased in, the credit will lead to more family-supporting  equal 7.5 percent of a company’s $44,200,000 in 2013-14; Wisconsin jobs. Combined with the “qualified production activities income”  exemption for manufacturing and $72,300,000 in 2014-15; derived from manufacturing property equipment adopted earlier, Wisconsin  $104,400,000 in 2015-16; located in the state. At full phase-in, will be well-positioned to be the nation’s  this credit will nearly offset the state’s $128,700,000 in fiscal year leading manufacturing state for years to 7.9 percent corporate income tax rate. 2016-17 and thereafter. come. BV

8 WMC Celebrates 100 Years: 1911-2011 isconsin Manufacturers and Commerce Wcelebrated 100 years of winning for business in 2011. To mark the occasion, the U.S. Chamber of Commerce commissioned an in-depth analysis of creating economic prosperity in Wisconsin and improving the state’s business climate. “This report provides a roadmap for the Legislature and the Governor as they move forward to continue to make Wisconsin the most competitive state in the nation,” said Kurt R. Bauer, WMC President/CEO. “We have made great strides, and we can do so much more. And, critical to our state’s success is to continue to defend and promote manufacturing because so many jobs come from Madison event panel from left: Aaron Powell, Vice President, manufacturing.” Comprehensive Computer Consulting; William Parsons, President, During the Madison event, the report’s author, Delore Palmer Johnson Enterprises, Inc.; Michael Salsieder, President/General Zimmerman, U.S. Chamber of Commerce researcher Counsel, Kolbe & Kolbe Millwork, Company, Inc.; Kurt Bauer, President/ CEO, WMC; Governor Scott Walker; Doug Loon, Vice President, U.S. with Praxis, presented the research to Governor Walker Chamber of Commerce; and Dr. Delore Zimmerman, Co-founder, and more than 250 business leaders. Doug Loon, U.S. President and CEO, Praxis Strategy Group. Chamber of Commerce Vice President, discussed Wisconsin’s business climate from a national perspective, and business executives on the panel commented on the research and shared their thoughts on job creation. Wisconsin’s business climate improved in 2011, but continued reforms are needed to make the state a job- creating powerhouse and special attention is needed to promote manufacturing job For more information on the Growing creation, according Wisconsin report, visit www.wmc.org to the report by the U.S. Chamber’s National Chamber Foundation. Growing Wisconsin Neenah event panel from left: Dan Ariens, President & CEO of Ariens highlights the actions Wisconsin has taken over the past Company; Aaron Powell, Vice President, Comprehensive Computer year to improve competitiveness. Consulting; Paul Jadin, Secretary, Wisconsin Economic Development “State leaders should do everything possible to support Corporation; Rebecca Kleefish, Lieutenant Governor; and William Parsons, President, Palmer Johnson Enterprises, Inc. current manufacturers,” the report says. Wisconsin has 88 percent more manufacturing concentration than the typical state. “Manufacturing INNING leads the way as the state’s most F W F O OR S R B competitive industry.” A U E S Y I N

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Waukesha event panel from left: Larry Rambo, Senior Executive for Strategic Partnerships, Humana Inc.; Aaron Powell, Vice President, Comprehensive Computer Consulting; Rebecca Kleefish, Lieutenant Governor; Jim Winistorfer, President, Modern Equipment; and Paul Jadin, Secretary, Wisconsin Economic Development Corporation.

Wisconsin Business Voice 9 WMC at Home & on the Road

Mark Neumann Visits WMC Town Hall Meeting with U.S. Representative Reid Ribble WMC hosted a town hall meeting with freshman U.S. Representative Reid Ribble (R – Appleton) this fall in Appleton. Ribble is the author of legislation that would impose a moratorium on all new pending federal regulations. Business leaders from multiple Republican candidate for U.S. Senate Mark Neumann sectors shared their (center) meets with WMC executives and government thoughts on economic uncertainty caused relations team to discuss current business issues. by the federal government policies such as runaway regulations, government spending, and the federal healthcare mandates. Rep. Ribble is pictured here (right) with Kurt Bauer, WMC President/CEO. U.S. Senator Johnson’s Listening Session at WMC Chamber Regional Meetings Through its Wisconsin Chamber of Commerce Executives Association, WMC conducted a series of regional meetings in fall 2011 for local chamber of commerce executives. WMC Vice President Jim Morgan covered the results of the recent Chamber Economic Outlook Survey U.S. Senator Ron Johnson (R – Wisconsin) stopped by showing a positive trend in the WMC office in October with an update of federal the number of chambers issues. Pictured here is James Buchen, WMC Senior who feel their communities Vice President (left), Senator Johnson (center), and will see moderate growth in 2012. WMC Director of Tax and Transportation Kurt Bauer, WMC President/CEO (right). Policy Jason Culotta, who worked in the Governor’s office during the transition from Governor Doyle to Walker, discussed the gubernatorial transition from an insider’s view, and talked about current state legislative issues affecting local communities. WSC and OSHA Safety Meetings The Wisconsin Safety Council held a series of free Mini Business World OSHA construction The Business safety meetings in World program, Madison. At this a WMC event focusing on initiative, held Fall Protection, a Mini-BW John Corriveau from program last Lighthouse Safety, November. More LLC demonstrated than 120 high the practical aspects school students of complying with attended OSHA’s requirements this day-long for fall protection in program in construction. These free events will continue into 2012. Sturgeon Bay. Visit www.wisafetycouncil.org for complete information.

10 Wisconsin Manufacturer

ofelebrating the its 24th Year year, the Manufacturer Awards of the Year awards program Crecognizes a diverse array of manufacturers of all sizes and specialties for their contributions to the great state of Wisconsin. Five Grand Awards are given; four in size categories ranging from small to mega companies, and a fifth award for WMC Focus on a company excelling at environmentally Manufacturing sustainable practices. Breakfast The accounting and advisory firm of Baker Tilly Virchow Krause, LLP, the law A new event to focus on firm of Michael Best & Friedrich LLP, manufacturing will be held the and the business association Wisconsin morning after the Wisconsin Manufacturers and Commerce sponsor the annual awards program. The sponsors Manufacturer of the Year will reveal and celebrate the winners at a ceremony February 23, 2012, at The awards dinner. Pfister Hotel in Milwaukee. Join WMC on Friday, February 24 at The Pfister Hotel in Milwaukee. 2011 Nominees Access Battery, LLC, Milwaukee MAG IAS - Fond du Lac, Fond du Lac 7:00 a.m. Registration and American Packaging Corporation, Maletto Packaging, Inc., Eau Claire Networking Columbus MGS Mfg. Group, Inc., Germantown 7:30 Breakfast Atlas Resin Proppants, LLC, Taylor Nelson Container Group, Germantown Baptista’s Bakery, Inc., Franklin Northwoods Paper Converting, Inc., 8:00 Manufacturing Bell Laboratories, Inc., Madison Beaver Dam in Wisconsin and Berres Brothers, Inc., Watertown Patriot Taxiway Industries, Inc., Lomira Around the World Brady Corporation, Milwaukee Phillips Plastics Corporation, Hudson 8:10 Global Issues Cambridge Major Laboratories, Inc., Plexus, Neenah Germantown Impacting Power Test, Inc., Sussex Manufacturing Edstrom Industries, Inc., Waterford Realityworks, Eau Claire EMT International, Hobart SCA Tissue North America, Neenah 8:30 Threats and Fiberdome Inc., LLC, Lake Mills Schwabe North America, Green Bay Opportunities for Frito Lay, Inc., Beloit Sign Effectz, Inc., Milwaukee Manufacturing in Generac Holdings, Inc., Waukesha Solaris, Inc., West Allis the United States Grede Holdings, LLC, Menomonee Falls Springs Window Fashions, LLC, 9:00 Adjourn Hanel Corporation, New Berlin Middleton HUSCO Automotive Holdings, LLC, Spuncast, Inc., Watertown Whitewater Stoughton Trailers, LLC, Stoughton Cost is $40 per person. HWD Acquistion, Inc. d/b/a Hurd Superior Diesel, Inc., Rhinelander Visit www.wmc.org to register Windows & Doors, Medford for this event. Contact TLX Technologies, LLC, Waukesha Imagination Trends, LLC, De Forest Katy Pettersen with any Walker Forge, Inc., Clintonville iMark Molding, Inc., Woodville questions, (608) 258-3400. Waukesha Metal Products, Sussex JL French Automotive Castings, Inc., Sheboygan Weldall Mfg., Inc., Waukesha Joy Global, Inc., Milwaukee Winsert, Inc., Marinette Kaysun Corporation, Manitowoc Wisconsin Film and Bag, Shawano KHS USA, Inc., Waukesha Wiscraft, Inc., Milwaukee KLH Industries, Inc., Germantown WS Packaging Group, Green Bay L.T. Hampel Corp., Germantown Xten Industries, Kenosha Focus on Manufacturing Linetec, Wausau Media Partner

Wisconsin Manufacturer of the @wimoty Year (MOTY) award program

www.wimoty.com Wisconsin Business Voice 11

BusinessVoice_Jan2012.indd 11 12/16/2011 3:48:58 PM courage

12 Walker Walks the Line Governor stands up to the status quo – even if it’s at his own expense By Becky Nelson

ery few are undecided or indifferent. If you live in of Forward Janesville. “He understands how cities, states, courageVWisconsin, you fall into one of two camps. and nations intensely compete for new investment, and he You think Governor Scott Walker is a courageous and understands that our brand as a state has been tarnished by bold political leader who has blocked the expansion of state years of comparatively high taxation, an aggressive regulatory government and, in the process, faced down a literal angry environment and budget gimmickry.” mob of public employee union members who support big government and the high taxes necessary to feed it. A bold move Or you think Walker is an overreaching, heartless union Beyond the public outcry, Walker has been the target of less buster whose budget cuts and collective bargaining reforms publicized, but increasingly uncivil, if not vicious, protests threaten the most vulnerable in society and unfairly balance since he introduced his budget repair bill February 11, 2011. the state’s finances on the backs of public servants. He’s faced angry crowds outside his Wauwatosa home, requests to leave restaurants, and hecklers even at out-of-state Since he took office a year ago and began a crusade to control events. He recalls an incident where someone followed and government spending and erase more than a decade of chronic shouted at his mother and teenage son in a grocery store. multi-billion dollar budget deficits, Scott Walker has become known as one of the most polarizing politicians in recent Is it simply the price to pay for implementing major reform? history. “There’s no doubt. If you’re bold and you lead the way, there are going to be defenders of the status quo that will attack In the process, Walker has become the sworn enemy of you,” Governor Walker said in an exclusive interview with progressives and union members, especially those representing Business Voice. public sector employees. They portray him as a puppet of wealthy and corporate interests working against the needs of “To me, the personal attacks we’ve seen are largely a reflection the lower and middle classes. of the people and the money that came in from outside the state,” he added. A majority of business leaders and many local government officials see Yet, from the beginning, Walker differently. They appreciate Wisconsin’s residents were deeply the fact that Walker erased a $3.6 “Here’s a problem. Here’s divided over limiting collective billion deficit during a weak economy bargaining for public employees without raising taxes, receiving a a solution. Let’s fix it.” – an intrepid move in a state that federal bailout, raiding segregated was the first to give public workers funds, or using accounting tricks – such rights in 1959. A poll while also enacting reforms that allowed for little to no local conducted last March showed 51 percent opposed the budget tax increases. plan; 46 percent supported it. “It was downright scary what was happening prior to “If we were going to balance the budget without raising taxes Governor Walker being elected into office. Changes in the or without making devastating cuts to things like Medicaid economy were curtailing revenue, but state government that affect needy families and children, we ultimately had spending continued,” said WMC’s incoming Chair to make a change in the aid to local governments,” Walker Todd Teske, chairman, president & CEO of Briggs & explained. “In order to ensure that those schools and local Stratton Corporation. governments could still provide the core service expected of them, we had to make collective bargaining reforms.” “There is general agreement among business leaders that the Walker administration understands how investment decisions Looking back, Governor Walker said there is just one are made in the private sector,” said John Beckord, president change he would have made: he would have spent time on a

Wisconsin Business Voice 13 communications campaign in January and early February of last year. “I just looked at this like a small business owner and said, ‘Here’s a problem; here’s a solution. Let’s fix it,’ ” he said. Walker admits that he and his staff underestimated the impact of the national labor unions’ response and the money they were willing to spend – and said they should have been more prepared. By March 11, when the governor signed the budget repair bill into law (Act 10), the backlash had the potential to make him the third sitting governor in the United States to be ousted in a recall election.

Above, Governor Walker at a company presentation. Below, working with an aide. At right, WhileAgenda: he wouldn’t Job singlegrowth out any one on election night. Below right, protestors outside the Capitol. measure as his biggest accomplishment, Governor Walker points out that within Brookfield Chamber of Commerce. “Most now feel there is less than two months the Legislature passed “probably the a renewed effort and interest to improve the business climate most aggressive pro-jobs agenda in the country,” including and taxes in our state.” tort reform, regulatory relief, a manufacturers’ tax credit and “Since Governor Walker took over, we’ve been able to move forming a new economic development corporation. forward with things that would create a better business “I think the fact that we did it, and we did it so quickly, is climate here in the state of Wisconsin – things such as a important because of what it says not only policy-wise, but the no-tax-hike state budget, manufacturers’ tax credits, and job message it sends to the job creators that we’re serious. We’re creation tax deductions,” said John Casper, president and serious about businesses wanting to come and grow here,” he CEO of the Oshkosh Chamber of Commerce. said. The Oshkosh school district’s property tax levy dropped one Community leaders say Act 10 and other measures are already percent this year. “We have not had to significantly reduce starting to yield positive results. services to the community, so how can you argue with that?” Casper said. “For years, the majority of the business people I have talked with have felt the state has made doing business here very In fact, total property taxes for all 424 Wisconsin school challenging,” said Carol White, president of the Greater districts statewide declined one percent this year for the first time since 2005. The lower property tax bills are proof that the government spending controls are working, Governor Walker said. Rather than being temporary fixes, they are structural changes “that will make us better for years to come,” he said. Last May, a WMC membership survey showed 88 percent of chief executives felt the state was headed in the right direction, up from 10 percent a year earlier. And just this month, WMC released the results of another survey conducted in December showing that number is even higher - up to 94 percent. “Optimism needs to build before you’re going to see any increase in spending, which is going to create new jobs, which is going to create better economic conditions – so it has to start with optimism,” said

14 Russell Schieber, vice president of operations support at Brakebush Brothers, Inc. in Westfield, and a business instructor at Madison College.

AGoal second unchanged special legislative session, which ended in November, resulted in another 14 pieces of pro- business legislation. Critics say the measures are not enough, pointing out the state had a net gain of just under 30,000 jobs last year. But Governor Walker said While business leaders like Kamphuis, who says he’s he has not revised his goal of creating 250,000 new jobs in impressed with the Walker’s “steadfastness and consistency,” Wisconsin by the end of 2014. are vocal in their support of the governor, he’ll need to rally “Our focal point just means we’ve got to be even more his silent allies – including municipal leaders, school district aggressive in creating a better business environment,” he said. superintendents, even public employees – now that the Moving forward, he would like to encourage more regulatory gubernatorial recall effort is underway. streamlining within the state agencies and educational “There’s no doubt, if you were to say to any of these local programs that help manufacturers meet the demand for skilled officials, ‘Would you support a bill to repeal the collective workers. bargaining reforms?’ the vast majority of them would say absolutely not,” Walker said. “Now, what would be nice is to have more people having the courage to stand up and say that, because a lot of them feel incredible pressure from some of the unions in their jurisdiction.” The governor has shown continuous, if small, improvements in approval ratings, with 47 percent of voters approving of him in October, compared with 43 percent in May. According to Public Policy Polling, 48 percent of voters wanted to recall Walker; 49 percent were opposed. The only candidate that beat him in the hypothetical recall election was former United States Senator Russ Feingold, who has already said he will not run. “When it really gets down to it, I think people realize Governor Walker did what he had to do, and the Legislature The nation is taking notice of the shift in Wisconsin’s did what it needed to do because what we had before was business climate, said Bob Kamphuis, chairman, president completely unsustainable,” said Casper of Oshkosh. and CEO of Mayville Engineering Company, Inc. He cited a “The majority of the people in this state elected me to be recent CEO Magazine survey that ranked Wisconsin the 24th their governor,” Walker said. “So, no matter what happens, best state for business, up from 41st last year. I’m going to continue to do what people elected me to do and “At the end of the day, there are a lot of companies looking to follow through on my campaign promises.” BV bring work back here to the United States. Now’s a great time to be looked upon very favorably, because that’s going to help Nelson is a Madison-based freelance writer. you continue to grow,” he said.

Wisconsin Business Voice 15 ByInnovative Mike Shoys, WMC Vice President Advances in Sustainability

isconsin businesses exhibit window treatments, and healthy-home window treatments. Winnovation throughout Per Scott Fawcett, president & CEO of Springs Window their operations. Whether in Fashions, “At Springs Window Fashions, being ‘green’ isn’t production facilities, administrative just a fad or a label on a product. It’s deeply embedded in both processes, employee relations, or the nature of our company and our window treatments.” This other areas, Wisconsin companies commitment to respecting are recognized worldwide the earth is a long-term for their best practices which See www.wmc.org for more part of the philosophy Wisconsin business Best improve quality, efficiency, and that guides Springs as Practices. If you’d like to competitiveness. they conduct business. share your Best Practice The WMC Foundation collects As a socially responsible story, contact Mike Shoys best practices from innovative companies across the state. company, Springs’ people, at [email protected]. Manufacturers and service companies alike are leading the way processes, and products are when it comes to environmental sustainability, healthcare, and all key components of this commitment.” Springs’ corporate safety. approach has become “Green is Lean. Take the waste out of Springs Window Fashions’ mission is to be the leading every product, process, and job.” provider of fashionable and functional high-quality window Springs vows that their environmental initiatives will always treatments that represent value to customers. Springs sets be connected back to a real consumer need or benefit, and the standard for total quality and superior products through their eco-friendly claims will be supported by solid statistics. fashion leadership and continuous availability of fresh, new Their goal is to minimize the overall environmental impact of products. the company and products by using recycled, renewable, and Springs has developed “Green by Nature™” business reduced content materials over virgin sources, reducing energy practices that include high-recycling manufacturing facilities, usage and waste, and improving air and water efficiency, and environmentally friendly material harvesting, energy-efficient indoor air quality. BV

Some accomplishments of Springs’ sustainability efforts include: Plastic Shade Production

• 43 million pounds of industrial waste Virgin Resins Recycled Materials generated in the Middleton facility have been recycled and diverted from landfills over the past 10 years. • 71 percent reduction in airborne emissions in Middleton since 2000. • 90 million gallons of water are saved every year with the installation of a closed-loop water cooling system for the Middleton plastic extrusion equipment. Heat Recovery EXTRUSION WASTE • A minimum of 44 percent of post- Water Recycling PROCESS consumer recycled materials is Reduce VOCs by 52% included in the packaging of all OPTIMIZE TRANSPORTATION (Air Scrubbers) Springs Window Fashions’ products. FUEL USAGE • 100 percent of packaging materials are able to be recycled. • Over 4,000 tons of sawdust are ASSEMBLY WASTE recycled annually in a waste-to-energy PROCESS program in their Grayling, Michigan wood fabrication plant. 99.7% POLLUTION-FREE

44% POST-CONSUMER PACKAGING MATERIAL 100% RECYCLABLE

16 Business World 2012 Wisconsin 30 Years. 14,000 Students. Business Friend of the 2,500 Educators. Business World, a WMC Environment Awards initiative, brings high school Nomination Deadline: Friday, March 16 students and educators together with business The Wisconsin Environmental Policy and Awards volunteers at a college Environmental Working Conference on May 9, 2012, at the campus or local business to Group® is accepting Country Springs Hotel in Pewaukee. learn about the challenges nominations for the 23rd annual The winners will be publicized locally facing our economy. Business Friend of the Environment and statewide. This opportunity helps tomorrow’s leaders prepare awards. The awards are available Winners will be selected by an to private industry companies for their future in today’s independent panel of judges increasingly competitive global headquartered, or with significant representing industry, the Department marketplace. operations, in Wisconsin, and are of Natural Resources, the University of earned annually by companies that Wisconsin, and environmental groups. demonstrate environmental leadership. 2011 Summer Programs: Companies are encouraged to self- Projects must have been completed and/  St. Norbert College, De Pere nominate. or operational in the 2011 calendar year. Projects need not have been operational  Edgewood College, Madison Award Categories include: for the entire year, but must have been  300 students  Pollution Prevention completed and/or have shown results  115 high schools during 2011.  Use of Innovative Technology  22 business tours Visit www.wmc.org for a nomination  Environmental Stewardship  14 volunteer advisors form. BV Three winners will be selected in each of these three categories. In each category, 2011 Mini Programs: an award will be given to a company  Dane County, Sturgeon Bay, with less than 100 employees, to a Germantown, Wausau Visit at www.wmc.org for additional company with 100 to 500 employees,  350 students and to a company with more than information. Contact Karen Mahlkuch with any questions, (608) 661-6938,  15 high schools 500 employees. [email protected] Winners will be announced and honored at the annual Wisconsin Manufacturers & Commerce

Award Criteria While the judges will determine the category for each winning company, the following award criteria are offered as a guideline. Pollution Prevention Demonstrate waste or pollution minimization through process improvements in waste reduction, recycling or reuse. Environmental Innovation Demonstrate the creative use of technology or process to improve the environment. Environmental Stewardship Demonstrate a level of effort that goes beyond what is required by regulation and which indicates a cooperative approach toward improving the environment. Include any community or education outreach programs in which your company is involved.

Wisconsin Business Voice 17 Coverage that works hard. Like you.

Aetna isis proudproud toto offer offer group life and life disabilityand disability plans plans to WMC to WMC members. members. For more information pleaseplease contact contact your your insurance insurance broker: broker or: Russ Cain,Cain, Director MemberMember Insurance Insurance Services,Services, WMCWMC 800.236.5414 608.661.6928 or or Kate Palm, Sr. SalesSales Executive, AetnaAetna 612.418.2607 612.418.2607..

©2011 Aetna Inc. 2011012

Awards and Honors Dr. Robert R. Spitzer, president emeritus of the Milwaukee School of Engineering, was recently honored with a Lifetime Achievement Award from the Walworth County Economic Development Alliance. Dr. Spitzer served as Do you have news to share? President of the Wisconsin Manufacturers’ Send your press releases and company news Association from 1970-1972 when he was the Chairman of the Board of Murphy Products to [email protected] Company, Inc.

The Wisconsin Safety Council (WSC) earned two awards from the National Safety Council (NSC) at the Seeking Small Business annual national safety conference in Philadelphia. Committee Members WMC’s Small Business Committee has been tasked At right, Paulette Moulos (left), NSC Chief Operating Officer, awards with keeping Wisconsin’s small business voice strong in Janie Ritter, Wisconsin Safety Council front of legislators, members of the administration, and Director, with the NSC Hall of Fame other decision-makers. The Committee also ensures award in appreciation for outstanding that small businesses are represented in WMC’s leadership in sales and service when legislative agenda and program development. providing safety training and products The Small Business Committee is currently seeking to Wisconsin companies. WSC also received an Honorable Mention Award nominations of member businesses with less than in Emergency Medical Response based on the number of employees trained and products sold in Wisconsin compared to other state chapters. 100 employees. Contact Amber Schroeder at [email protected] or (608) 258-3400 to get involved today!

18 WMC’st was the first snowfall Connectionof the season government. Hubert dealsto with Chinaissues labor and transportation costs create site Iin Madison as Xiaobo Peng sat on the such as environmental regulation, access selection challenges. Partnerships with second floor of WMC’s office gazing to technology such as internet and people on the ground locally are the key up East Washington Avenue at the phone service, finding skilled workers, to success. State Capitol building, briefing WMC and workplace safety. There are also Hubert also had the chance to meet staff on the complexities of economic villages within the industrial park, so U.S. Senator Ron Johnson during development in China. Hubert sometimes works with residents Senator Johnson’s listening session with Hubert, as he wished to be known here, to mediate their grievances with the WMC staff. During the session with worked closely with WMC during a companies. Senator Johnson, a comment was made three-week internship as part of the Shanghai has a population of 23 about comparing China’s communist University of Wisconsin Law School’s million people. Their business Center for Asian Studies Minhang community shares challenges District program. During the program’s similar to those of the five years of existence, WMC has United States, with an aging accepted four interns from Shanghai population, a shortage of who have shadowed our employees and high-skilled workers, and an participated in external meetings with unmatched supply-demand government officials, local businesses, between graduates and company and other organizations. We have needs. They too have an helped to fulfill their goal of learning economy in recovery, but plenty how a private business organization of uncertainties remain for works with public institutions to business. improve the business climate in the While he was here, Hubert state. WMC’s staff have learned a met with Dale Evans, CEO of EVCO activities with the United States and great deal about Chinese economic Plastics. EVCO has two plants in suggesting that China may have a more development strategies and the Chinese China, and Hubert was interested to entrepreneurial spirit these days. At that culture. learn how EVCO made their decisions point, Hubert raised his fist and said, Hubert is the Assistant to the Chairman to expand globally. The message was “Pro-business!” and Deputy Director of Investment that U.S. companies with operations in On his last day with WMC, Hubert Consulting for the Shanghai Xinzhuang China face many of the same issues they professed his gratitude and amazement Industry Park, one of eight industrial do domestically. Extensive regulations that we share a lot of the same concerns. parks in Shanghai. He acts as a can slow down economic investment, He smiled and said he was glad to see liaison between the 480 companies in shortages of skilled workers affect we probably share some of the same his industrial park and the Chinese expansion and efficiencies, and rising solutions too. BV

WMC Staff Listing Jane Algiers Wade Goodsell Susan Nyffenegger Associate Director of Member Relations Membership Services Representative Executive Assistant Mary Anderson Megan Haag Amanda Pavelec IT Database Specialist Member Relations Coordinator Human Resources Coordinator Denise Anderson Rebecca Hogan Katy Pettersen Accounting Coordinator Director of Health & Human Director of Marketing Resources Policy Kurt Bauer Jim Pugh President/CEO Keith Hudson Director of Public Policy Web/Database Administrator Steve Benzschawel Dennis Reiter Business World Program Director Sarah Jenkins Director of Information Technology Accounting Assistant/Receptionist Nancy Boehnen Janie Ritter Assistant to the President/Board Pam Kelly Director of Wisconsin Safety Council WSC Customer Service Specialist James Buchen Amber Schroeder Senior Vice President, Government Kay Kertz Director of Membership Relations Director of Finance Mike Shoys Russ Cain Rich Laufenberg Vice President Director of Member Insurance Services Insurance Service Specialist Jordan Smith Thom Cox Karen Mahlkuch Membership Services Representative Membership Services Representative Associate Director of Government Theresa Stewart Relations Jason Culotta WSC Customer Service Specialist Director of Tax & Transportation Policy Scott Manley Leah Supensky Director of Environmental & Energy Barb Deans Associate Director of Public Policy Policy WSC Education Coordinator & Jane Sutter Member Relations Jim Morgan Graphic Designer Vice President, WMC President, WMC Foundation

Wisconsin Business Voice 19 In the News BySTEMing Rebecca Hogan, WMC Director Our of Health Workforce and Human Resources Policy

Wisconsin does have a STEM parents, and students - to better position presence. We are a leader in Project our state in the global economy. Lead the Way, a rigorous STEM The United States needs to fill over curriculum which engages students in 21,000,000 jobs to get back to pre- activities, projects, and problem-based recession levels. A statewide initiative learning, while providing hands-on that incorporates the points below classroom experiences. More than is necessary if we want to lead in the 38,000 Wisconsin students in 280 recovery. If you have ideas or would schools have used the program to create, like to be part of any strategy moving design, build, discover, collaborate, and forward, please contact me at solve problems while applying what they [email protected]. BV n December I was fortunate to be learn in math and science. Ia member of Wisconsin’s STEM Additionally, WISTEM.org is a (Science, Technology, Engineering, website that acts as a clearinghouse and Math) team at the National and virtual forum for K-12 education, Governor’s Association (NGA) Center post-secondary education, and business for Best Practices STEM Summit. partners. The Wisconsin Department I joined representatives from the of Public Instruction participates in the Governor’s Office, the Department STEM Equity Pipeline Project which of Public Instruction, is a national initiative and the Department to encourage more of Workforce participation of Development to A statewide girls, minorities, learn more about initiative is necessary if and students with what is happening special needs in From left to right, Michael Brickman, Education across the country we want to lead in the STEM. Policy Assistant, Office of Governor Scott Walker; as it relates to STEM recovery. What Wisconsin does WMC’s Rebecca Hogan; Sharon Wendt, Director education. not have is a comprehensive of Career and Technical Education Wisconsin Department of Public Instruction; and Lisa Boyd, The STEM emphasis originated STEM strategy - one that engages Administrator, Division of Employment and Training when test scores showed our students policy makers, employers, educators, Wisconsin Department of Workforce Development trail other children across the globe in science, technology, engineering and math. The idea is to change the At the NGA Summit, Team Wisconsin had an opportunity to learn about successful model of a teacher lecturing at students; statewide initiatives across the country, and to develop a plan for our state. Here are this method is producing lackluster some key points for everyone to consider as we move to “STEM” our workforce: results. STEM encourages hands-on • STEM is the key component of any • Students respond well to blended participation and combines all four areas strategy Wisconsin develops to better opportunities. Give schools and of study in the process. It requires the prepare our students with the skills teachers the flexibility to be students to problem-solve, discover, and knowledge needed for today’s innovative and creative so they can explore learning, and engage in a workforce. better engage students in this type of situation in order to find its solution. • Collaboration between policy makers, learning. employers, K-12 education, and post- • Teachers need access to information If the United States wants to keep up secondary education is necessary and continuing education so they with an ever-changing and innovative at all stages. No solution will be can easily adapt to the ever-changing economy there must be a push for successful if developed in a silo. technology and instruction methods our students to engage in this type • STEM education requires investment, needed to encourage students toward STEM occupations. of learning. The same is true for and in a time of limited funding Wisconsin. that is a challenge. However, natural • Students will benefit from career solutions present themselves when guidance that includes realistic you create partnerships between information about job opportunities in the education community and their chosen pathway. the employers who have very real • Parents understandably want their workforce needs. children to be in a solid, stable profession but may have dated ideas about real workforce opportunities after graduation.

20 “While this is further indication that Wisconsin Manufacturers have retained more jobs than their counterparts across the nation, this increase in concentration makes In the Newsthe overall state economy even more dependent upon manufacturing to be an economic engine,” the report says. Stop costly regulations, WMC tells federal agency head �2011 Growing Wisconsin Report “Federal laws, policies and proposals are by far the biggest cause of uncertainty for Wisconsin businesses,” said Kurt R. Bauer, president/CEO of Wisconsin Manufacturers & Commerce. �The Lakeland Times, Minocqua: November 18, 2011

WisBusiness: Business leaders laud Walker budget “It’s something they should receive acclaim for,” Kurt Bauer, CEO of Wisconsin Manufacturers & Commerce, the state’s largest business lobby. “It sends a message to business leaders in our state and nationwide that Wisconsin is no longer in denial about the seriousness of our chronic budget deficits. It has created a positive buzz for our state.” Wisconsin www.wisbusiness.com Concealed Business production tax break added to state budget “This is the icing on the cake for us be able to go out and sell Wisconsin as Carry Law: manufacturing heaven,” said James Buchen, vice president of government relations for As it Affects Businesses Wisconsin Manufacturers & Commerce, the state’s largest business trade association. �JS Online In November 2011, Wisconsin Act 35, or better known as Wisconsin’s concealed carry law, became reality. Now that the law has been implemented, a properly licensed individual CEOs Say Wisconsin is is allowed to carry concealed weapons in Wisconsin. on the Right Track Employers need to be aware of Increased Confidence Found in WMC Member Survey provisions in Act 35 that will Wisconsin CEOs are extremely confident in the direction of the state of affect their businesses. Wisconsin, with 94 percent saying the state is headed in the right direction. But, WMC held a session to educate the hiring prospects in the state remain mixed. employers on the intricacies WMC surveyed its members in December, with 272 of 1,100 CEOs of the Concealed Carry responding. WMC has conducted the Economic Outlook Survey of WMC law. View the informational members and the WMC board of directors since 1997. video on WMC’s YouTube

At 94 percent, the confidence in the state is up from 100% channel, WisconsinMC: 90% http://www.youtube.com/user/ 88 percent in the spring of last year. In 2010, only 80% 70% WisconsinMC. 10 percent of Wisconsin CEOs said the state was 60% 50%

going in the right direction, and a staggering 90 40% percent said the state was off on the wrong track. 30% 20%

10% Scan this tag This increased confidence is likely a reflection of 0% to watch the June 2010 June 2011 December 2011 the passage of significant policy changes aimed at 10% 88% 93% video on your improving the state smart phone business climate. The Legislature passed and WMC members completed the Governor Scott Walker signed tax cuts, regulation survey online during the f irst relief, and liability reforms earlier last year. two weeks of December 2011. If you plan to post signs For complete survey results go to On the jobs front, 44 percent of WMC members prohibiting weapons or firearms www.wmc.org. say they will be adding jobs in the next six months, on your premises, WMC has while 49 percent said they would not be hiring. Of signs available for download. those responding, 7 percent said they may be cutting jobs. Visit www.wmc.org. Ironically, 42 percent of WMC members said they are having trouble hiring employees despite unemployment above 8 percent in the state. For additional information regarding The economic slowdown continues to vex CEOs here, with 45 percent saying the law visit the Wisconsin Department of Justice website at www.doj.state.wi.us the slowdown is their top business concern. and search for concealed carry. On policy, taxes continued to concern CEOS, with 25 percent citing taxes as the state’s top policy problem, followed by regulation at 20 percent.

Wisconsin Business Voice 21 SAFETY The Importance of Safety Audits to

ByYour Janie Ritter, BusinessDirector of Wisconsin Safety Council

 The fourth kind of call is from a and training for new employees. company in a specific SIC (standard Just because a company has a safety industry classification) industry program in place, it doesn’t do any which OSHA is targeting. In good unless the company is training September last year, OSHA’s leader new employees, and retraining announced the agency would be current employees on a regular basis. targeting industries with typically  Keeping the proper training records higher incident rates, and cracking and making sure safety policies are down on companies not meeting the being enforced. exceedingly tight standards. Companies need all of these pieces to  The last and most unfortunate call is have a successful and effective safety hen Dave Anderson gets a phone when someone has been injured, or program. Any employer with one or Wcall, he hopes it’s not already worse yet, has died. These are always more employee is technically responsible too late to save a life. Anderson is the tough and there are numerous areas for implementing an effective safety founder of Anderson 360 Solutions, a where the company will need help at program. But more important than consulting firm specializing in safety this point. being in compliance is protecting your Visit www.wisafetycouncil.org or call (800) 236-3400 for more information and to register today. audits and one of the many professionals Anderson prefers to work with number one asset – your employees. Not who works with the Wisconsin Safety companies who are proactive rather only is it the law, it’s the right thing to Council. He has worked with all types than reactive. He recalls a time when he do. BV of companies for many different reasons. worked with a company in advance of Dave says there are myriad reasons his any issues to get their safety programs phone rings in regards to safety. The top and training in order. They were five are: randomly inspected not long after, and received no citations. In another  The first is the best kind of call – instance, a company called because one where the company knows they they had recently let go a disgruntled need help with their safety programs, employee, and feared backlash by training, and documentation, but that employee. Anderson audited all If a regulatory agency they haven’t had any problems or their safety programs, procedures, and representative walked into violations… Yet! documentation. They were prepared your business today for an  The second is from a company who when they received the complaint from inspection, would you be recently learned they will be visited OSHA. ready? Dave Anderson is one by OSHA or another regulatory of the many professional agency. They know they need When conducting an audit, Anderson safety auditors the Wisconsin help to bring their safety program says he concentrates on three main Safety Council works with to to a higher level and are typically areas: help Wisconsin companies wondering what they may be missing  Helping a company find unsafe or stay in compliance with to prepare for an inspection. citable conditions in their facilities. state and federal regulations,  The third is from a company who  Inspecting the company’s written and to protect the safety received a complaint involving safety safety programs. Most companies of employees. WSC is your issues, perhaps from a current or should have 8-12 specific program business’ resource for safety former employee. That company areas, at minimum. During a training and compliance, should absolutely expect a follow-up complete audit, Dave also reviews offering more than 100 call from an OSHA or state official! the overall company safety program courses every year and the annual conference in April. Call (800) 236-3400 or visit www.wisafetycouncil.org to learn more.

22 Wisconsin Safety & Health Conference and Exposition

April 16-18, 2012 Kalahari Resort & Convention Center, Wisconsin Dells

The Wisconsin Safety Council is Wisconsin’s leading New this year! provider of workplace safety training and programming.  Live Demos Whether you are an industry newcomer, a seasoned  More Professional Development Courses  Ask the Expert Sessions professional, or somewhere in between,  More Advanced Safety Professional Sessions the 2012 Safety & Health Conference  Special Corporate Safety Awards  More Educational Sessions and Exposition can help you increase your  Networking Reception knowledge, enhance your career,  “Find the Safety Violation” in the Expo Hall  Exhibitor Booth Awards and empower YOU for  Early Morning Fitness Class long-term success. ...and much more! You won’t want to miss it!

Visit www.wisafetycouncil.org or call (800) 236-3400 for more information and to register today.

– Safety Training January June 2012 The Wisconsin Safety Council, a division of WMC, is the reason more people go home safely every Chapter of day from manufacturing plants, offices, and construction sites. WSC offers training throughout the year at locations across the state.

Eau Claire Madison Area Milwaukee Area Wisconsin Dells Area February 14 January 4 March 14 January 19 February 15-16 MSHA/OSHA 8-hour Refresher MSHA/OSHA 8-hour Refresher Creating a World-Class Safety MSHA/OSHA 8-hour Refresher 7th Annual Food Processors Safety & Training Compliance & Training Compliance Culture & Training Compliance Conference/Expo January 19 March 15 March 1 February 16 Fox Valley/Green Bay OSHA Construction Breakfast OSHA Construction Breakfast Incident Investigation Safety in a Changing Workplace Area “Pre-Planning for Safety” “OSHA Update” March 15 (Safety R.O.C.K.S!) January 17 January 23-26 March 27 Supervisory Development: Safety April 16-18 MSHA/OSHA 8-hour Refresher Fundamentals of Industrial RCRA Compliance for Hazardous & Health Fundamentals 70th Annual Safety & Health & Training Compliance Waste Generators & DOT Hygiene (FIH) March 19-22 Conference/Expo February 23 HazMat Transportation February 6 OSHA 30-hour Voluntary April 16 Safety Inspections Job Safety Analysis March 28 Compliance Course for General Coaching the Lift Truck Confined Space, May 3-4 February 8 Industry Operator, Train-the-Trainer OSHA 10-hour Voluntary Train-the-Trainer Coaching the Emergency Vehicle April 17 Effective Team Safety Compliance Course for General Operator May 10 Coaching the Lift Truck Operator, Industry  Ambulance/Fire Supervisory Development: Safety Train-the-Trainer Ergonomics: Managing for & Health Fundamentals Results May 23 February 21-22 June 26 Creating a World-Class Safety  OSHA 10-hour Voluntary May 14-17 Effective Team Safety Incident Investigation Culture Compliance Course for General Safety Training Methods (STM) NFPA 70-E Advanced Electrical June 12 Industry May 22 Wausau/Stevens Point/ Safe Work Practices Job Safety Analysis Marshfield Area February 28 Safety Inspections Drugs in the Workplace – June 14 MSHA/OSHA 8-hour Refresher May 24 January 18 Recognition and Trends & Training Compliance Safety Communication & Training OSHA Construction MSHA/OSHA 8-hour Refresher Techniques & Training Compliance Leadership through March 13 Breakfast “Cranes/ Understanding People, Behaviors, June 26 MSHA/OSHA 8-hour Refresher Power Lines” February 9 and Workplace Demands Lockout/Tagout, & Training Compliance Coaching the Lift Truck Operator, Train-the-Trainer Train-the-Trainer Fall Protection June 19-22 8-hour Hazwoper Refresher For a complete schedule and registration information, visit OSHA 30-hour Voluntary Interpretation of Industrial Compliance Course for General Hygiene Results www.wisafetycouncil.org Industry

Wisconsin Business Voice 23 Job Creation and Job Training

ByDemand Peter Barca (D – Kenosha), Urgent State Representative, Focus Wisconsin Assembly Minority Leader

tax cuts focused on initiatives that are in Wisconsin, and the wind industry is directly targeted at producing jobs. tied to thousands of jobs in our state. In November, Democrats announced We should allow the wind siting rules another package of nine jobs bills to go into effect to give more certainty focused on job training and job creation. to developers and allow major wind We understand businesses must energy projects to go forward and create ultimately do the hiring, so we worked hundreds or possibly thousands more with technical college officials, local jobs. business leaders, and other stakeholders Unfortunately, a recent special session of to put together the best possible package the legislature that was supposed to be of legislation. These bills will help focused on job creation instead focused Wisconsin workers bridge that gap and on issues such as allowing the sampling t’s been a difficult year for Wisconsin connect skilled workers with potential and sale of wine at fairgrounds, Ifamilies, with tens of thousands employers. undermining medically accurate sex still struggling to make ends meet We put forward these bills knowing education, and changing rules relating in the toughest economic climate in manufacturing is one of our bedrock to vehicles that fail to yield the right- generations. Our number one priority industries here in Wisconsin. In fact, of-way. Some upcoming legislation for the New Year must be helping to Wisconsin has a higher percentage would appear to actually do harm to job create good, family-supporting jobs for of our workforce employed in creation efforts, such as in Wisconsin’s the people of our state. manufacturing than any other state. biosciences industry. Democrats have spent the past year Wisconsin Manufacturers and Legislators on both sides of the aisle bringing ideas to the table that would Commerce has done an exceptional need to work together on initiatives help create jobs quickly. job of recruiting and encouraging to create good jobs, invest in our Last January, on our first day in office, prospective workers to enter this workforce, and support business growth Assembly Democrats presented a series important field. and a healthy economy. of ten jobs bills to build upon our efforts As we collaborate on helping put people In this economy, the people of last session that resulted in more than back to work quickly, another industry Wisconsin expect and demand an 50 initiatives to create jobs and rebuild we believe presents an extraordinary urgent focus on these important issues. the economy. These proposals focused opportunity is wind energy. We hope this year is the time we make on three important criteria: creating A recent study shows there are 171 Wisconsin work again. BV jobs immediately, building on proven supply chain businesses for wind power job creation plans and techniques, and

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