Printable Version

WISCONSIN July 2012: Issue 3

Official magazine of Wisconsin Manufacturers & Commerce

Bad for Business? Dodd-Frank Act: Two Years Later

Inside: Working on the Workforce Paradox Public vs. Private Sector Problem Solving Senator Miller and Representative Vos: Questions that Matter to Wisconsin Businesses

WISCONSIN From the Editor Wisconsin’s economy is a bit like predicting a coin toss. Business Voice There is good news one day and bad the next, which makes it difficult at best to In this issue  determine if the economy is stagnating or recovering. WMC’s latest economic outlook survey showed Public vs. Private Sector Problem Solving more than half of the companies surveyed Kurt R. Bauer, WMC’s President/CEO, explores the inherent conflict plan to expand in Wisconsin in the next 24 2 between job creators and rule makers on the left side of the aisle. months - the highest rate in 10 years. And June 5: The Voters Reiterated 73 percent are expecting moderate to good 4 WMC Senior Vice President James Buchen recaps the recalls. growth this year. That’s encouraging. How a Bill Becomes a… War on Women? But we also know that overregulation has Rebecca Hogan, WMC Director of Health & Human Resources a profoundly adverse impact on job growth 6 Policy, reviews how some issues can quickly be misunderstood. in Wisconsin and nationally. Our member surveys cite the Environmental Protection Business Friend of the Environment Award Winners Agency, National Labor Relations Board and Nine companies were honored during the 23rd Annual Business Friend the Affordable Care Act as the biggest factors 8 of the Environment Awards. of “uncertainty” that cause businesses to Healthcare: A Guest Editorial from Wisconsin Hospital delay major investments. 9 Association Another is the Dodd-Frank Act. In its purest Regardless of the Federal Healthcare ruling, Wisconsin is moving form, Dodd-Frank was intended to protect forward with value-driven reform. consumers by preventing another financial Made in Wisconsin Feature crisis and the need for additional government From horseradish to hunting bows, Wisconsin manufacturers create bailouts. But as some warned at the time of 10 some well-known products. its passage, Dodd-Frank may turn out to be one of the leading factors keeping companies The Time to Support Pro-Business Lawmakers is Now from investing in their businesses. In fact, Jim Pugh, WMC Director of Public Affairs, touts the importance of The Wall Street Journal recently said Dodd- 11 supporting pro-growth candidates this fall. Frank’s “signature achievements are higher Workforce Paradox: We've Only Just Begun costs, reduced opportunities and weaker WMC Foundation President Jim Morgan continues his quest to help banks.” 12 solve Wisconsin’s workforce paradox. This edition of Wisconsin Business Voice Tort Reforms Moving Wisconsin Ahead takes a look at the impact of Dodd-Frank Jason Culotta, WMC Director of Tax & Transportation Policy, reveals on Wisconsin financial institutions and the 14 tort reforms adopted during the 2011 legislative session that are businesses they lend to. helping Wisconsin businesses. Feature: Dodd-Frank Act – Bad for Business? The federal financial regulatory reforms of 2010 are still causing 16 uncertainty for the nation’s financial sector as Wisconsin companies try to sort through the legislation.

America’s Self-Defeating Energy Policy Katy Ryder Pettersen WMC Director of Environmental & Energy Policy Scott Manley talks Editor, Wisconsin Business Voice 24 about our country’s desperate need for an energy policy overhaul. [email protected] Safety: The Survey Results are In Wisconsin Safety Council Director Janie Ritter reveals the results of the 26 recently completed annual safety survey. Ask Wisconsin’s Legislators Senator Mark Miller (D-Monona) and Representative Robin Vos 30 (R-Burlington) answer questions that matter to Wisconsin’s businesses. Wisconsin Business Voice is published quarterly by Wisconsin Manufacturers & Commerce (WMC), a statewide trade association Is the Free Enterprise System Under Attack? representing businesses of all sizes and from every sector of the Forward Janesville, Inc. President John Beckord breaks down the free economy. Send address changes to WMC, P.O. Box 352, Madison, 32 enterprise system. WI 53701-0352. All other contacts should be sent to WMC, 501 E. Washington Avenue, Madison, WI 53703, (608) 258-3400. This publication is proudly printed on paper made in Wisconsin. Kurt R. Bauer, WMC President/CEO Katy Ryder Pettersen, Editor ([email protected]) Jane Sutter, Designer ([email protected]) Public vs. Private Sector Problem Solving Kurt R. Bauer, WMC President/CEO

oth major parties in the U.S. have For example, the government sector unions tend to want moved to the far edges in recent to expand government, which means they want more taxes Byears. That shift toward what party to pay for it. Under Doyle, taxes and fees rose by $3 billion. activists would term ideological purity Most of that was aimed at businesses through combined arguably hurts Democrats more than the reporting and raising the capital gains tax. Doyle also added Republicans because Americans typically a new personal income tax bracket for the “rich.” But an stand just right of center on the political increasing high percentage of businesses are S Corporations spectrum. or another form of “pass through” entity. That means that That is certainly the case with the business shareholders pay the taxes, not the corporation. community. Although we don’t specifically Trial attorneys want more opportunities to sue businesses. A ask the question in our surveys, I think recent example is the supposed “war on women” as it relates it is fair to say the majority of WMC’s to the deceptively named equal pay law. The law was enacted member CEOs lean conservative, at least when Doyle was governor and Democrats controlled both on business issues and fiscal matters. houses of the Legislature (see Hogan’s column on page 6). It What we do ask in our surveys may offer proof. In June was repealed during the most recent GOP-led legislature, an 2011, just six months after Governor Scott Walker took action WMC supported along with 15 other business trade office, an incredible 88 percent of WMC members said associations. The trial attorney lobby led the fight against Wisconsin was headed in the right direction. That was repeal because the law made it easier to sue businesses. up from just 10 percent a year earlier during the waning By the way, the Milwaukee Journal Sentinel reported in a months of the Doyle Administration. By June 2012, the PolitiFact article that the equal pay law had never been used “right track” number improved to an astonishing 95 percent. while it was on the books and repealing it still leaves women Clearly, Walker’s budgetary and pro-job reforms resonated who are legitimate victims of workplace discrimination three with the results-obsessed business community, who other avenues to seek redress. sometimes view politics as a bizarre parallel universe. A For their part, environmentalists want more regulation major reason why is that in business, failing to and often oppose major job-creating economic solve problems can cost you your job development projects like the proposed and threaten the viability of the In a nation made great $1.5 billion iron ore mine in northern enterprise itself. But in politics, Wisconsin. I discussed the incredible the opposite can be true. Politics by free enterprise, it is a shame growth of business regulations in doesn’t usually reward bold that success is ridiculed instead of my previous column, but it bears action. It too often encourages repeating especially as it relates to timidly that largely preserves celebrated and the title “CEO” has how regulations drive up energy the status quo. become a pejorative to some. costs. Wisconsin gets nearly 70 The best dramatization of the very percent of its energy from coal, which different approaches to public versus private is the EPA’s and the environmentalists’ most sector problem solving is the Wisconsin recall. If Walker hated source. EPA’s anti-coal policies are a major were the CEO of a corporation instead of governor and threat to Wisconsin’s economy (see Manley’s column on turned a proportionately sized loss (or deficit in government page 24). accounting terms) into a profit (surplus), he would be on Another dividing line between Democrats and business the cover of every major business publication in the country. has been the Occupy Movement. Making businesses, Instead, Walker nearly got fired. i.e., employers, the scapegoats for the recession and the Tax, Sue and Regulate slow recovery may be good short-term politics, but it is a poor strategy for longer-term economic growth and job The business community also frequently finds itself at odds creation. Not to mention that in a nation made great by free with the policy agendas pursued by government sector enterprise, it is a shame that success is ridiculed instead of unions, trial attorneys and environmentalists. Those interest celebrated and the title “CEO” has become a pejorative to BV groups happen to be the most powerful members of the some. Democratic Party’s coalition, making conflict between Democrats and businesspeople all but inevitable. Follow Kurt on Twitter @Kurt_R_Bauer

2 Decision 2012 Series ith the important elections of 2012 upon us, WMC launched the Decision 2012 Series providing high-level public policy programming by bringing inW leading experts, policymakers and political candidates to address Wisconsin business leaders. In April, U.S. Congressman Paul Ryan (R-Janesville) spoke to a large crowd of WMC members in Milwaukee about the United States’ increasing debt stating that politicians need to address this issue and stop reckless spending. Congressman Ryan also took questions from the audience and addressed the recall Congressman Paul Ryan addressed the election of Governor Scott Walker saying “courage is on the ballot.” attendees.

WMC President/CEO Kurt R. Bauer Congressman Ryan being interviewed by WMC Board Treasurer and CEO of Baker discussed state issues with Cong. Ryan. local media. Tilly Tim Christen (right) with Cong. Ryan.

In May, the four Republican candidates for Wisconsin’s open U.S. Senate seat, former Governor Tommy Thompson, Speaker of the Assembly Jeff Fitzgerald, former Congressman Mark Neumann and businessman Eric Hovde, participated in a forum discussing issues affecting our nation’s business climate including healthcare, tax, regulation and debt. This event allowed members of the business community to compare each candidate’s vision for our nation. BV Jeff Wagner, WTMJ radio talk show host, (left) moderated the panel of U.S. Senate candidates. Decision 2012

Healthcare Update The Pfister Hotel, Milwaukee September (date tbd)

EPA “Trainwreck” Congressman Reid Ribble (R–8th District) and Ross Senate candidate Tommy Thompson (right) Senate candidate Mark Neumann (right) Eisenberg, Vice President for talks with WMC Small Business Committee was interviewed by Milwaukee Public Radio Energy and Resources Policy Chairman Aaron Powell of Flexion, Inc. after the forum. at National Association of Manufacturers

Bridgewood Hotel, Neenah October 24, 7–9:00 a.m.

Visit www.wmc.org for more information and to register for these upcoming events.

Assembly Speaker and Senate candidate WMC Senior Vice President James Buchen Jeff Fitzgerald talks with an attendee with Senate candidate Eric Hovde. before the event. Wisconsin Business Voice 3 The Voters Reiterated By James A. Buchen, WMC Senior Vice President of Government Relations

Governments at all levels stopped court of public opinion with $5 million collecting union dues and unions needed in issue ads educating the public about to recertify annually. These changes saved the importance of jobs and a strong the state millions of dollars and allowed business climate. local governments to more effectively Ironically, the unions talked about manage their budgets. This saved everything BUT collective bargaining taxpayers more than a billion dollars so – attacking Walker and trying to select far. And for the first time in many years a candidate committed to reversing the state budget was balanced without a the collective bargaining reforms. tax increase. The unions’ candidate – former Dane The fallout from these impressive County Executive Kathleen Falk – lost accomplishments was unpleasant. in the primary. hat did it mean when Governor Scott Walker successfully won The government workers’ unions So, Walker was left with a rematch of theW recall election of June 5, 2012? launched an orchestrated political tirade his race of 2010 against Milwaukee that put Wisconsin on the national stage Mayor Tom Barrett. Simple. for 18 months. Voters were confronted with a choice: Voters meant what they said in 2010. We witnessed protests at the Capitol move Wisconsin forward with Walker, In 2010, voters across Wisconsin – and for weeks on end. Legislators fled the or go back to the old ways with Barrett. America – began moving in a new state rather than vote on the proposals, Voters chose Walker handily; he direction. school children walked out of classrooms garnered 53 percent of the vote and won They appeared to favor candidates in Madison, tens of thousands of union in 60 of Wisconsin’s 72 counties. activists were bussed into Madison from committed to smaller government, lower The lessons learned? taxes, less regulation, and more economic around the country, doctors freedom. wrote phony medical Wisconsin needs to reform excuses for protestors and The the recall provisions of our Governor Walker was elected in that average, hard working unions talked Constitution that are too wave of elections and GOP majorities Wisconsin citizens open-ended and lead to were established in both houses of the became alarmed at the about everything destabilization of our Wisconsin Legislature. spectacle. BUT collective democracy. WMC will Upon being sworn into office, Walker At that point, opponents support recall reforms to invoked the frugality clause of the of Walker’s reforms bargaining our Constitution to ensure state’s Constitution in his inaugural used Wisconsin’s unusually this dark chapter is not repeated. address and commenced to govern in generous recall law and launched And, the biggest lesson? Voters meant a new way. Walker immediately called a wave of unprecedented elections aimed what they said in 2010. Smaller the Legislature into special session on at state senators in the summer of 2011. government is the path to economic jobs – cutting taxes, reforming the civil Two GOP senators were defeated. growth, freedom and opportunity. And a justice system, and clamping down on focus on improving Wisconsin’s business regulations. Then, in the fall, they launched the ultimate counter offensive – a recall of climate needs to continue to be job one. Faced with a $3.6 billion deficit, Walker Walker and four more GOP senators. We need to make sure that our state and the Legislature also reformed the can compete with the best nationally laws governing the way public employee Governor Walker’s pro-business policy in attracting new business and growing unions operate in Wisconsin. The initiatives have set the stage for robust jobs. BV reforms required government union economic growth in Wisconsin in the employees to pay a greater portion months ahead. WMC defended the of their healthcare and pension costs. business community’s perspective in the

4 Educating Tomorrow’s Leaders his summer, the campuses of Edgewood College in Madison and St. Norbert College in De Pere played host toT hundreds of high school business students who lived on campus for four fast-paced days of hands-on competitions and activities focused on free enterprise education. Students from all across the state, representing over 100 Wisconsin high schools, got the chance to run a mock company and make many of the same decisions facing real- world business executives. Students formed a company, created a product, designed marketing materials, presented at a trade show, performed a commercial skit, listened to presentations from business professionals, toured a local company and presented their business plan to a panel of judges. An impressive accomplishment for kids who were strangers when they arrived at camp! Business World has been going for over 30 years and with the growth of the mobile Mini Business World programs we are in touch with more communities, schools, kids and teachers than ever before! We hope you continue to support Business World in the coming school year. Together, we can help prepare the next generation of business leaders to be ready for the challenges and opportunities of our global economy. BV

U.S. Firms See Opportunity in Vietnam he triumph of the free enterprise system over centralized In 2011, Wisconsin companies exported $22 billion in goods. economic policies was on full display during a luncheon for Wisconsin companies have had success in Vietnam. In return, theT Vietnamese Ambassador to the United States. The event, held many Wisconsin-based companies see Vietnam becoming this spring in Madison, was hosted jointly by WMC and the U.S. among the most competitive manufacturing centers in Asia, and Chamber of Commerce. indeed the world. BV Ambassador Cuong said prior to adopting free market reforms in 1986 Vietnam had trouble feeding its population. Two years later, that problem was solved. Today, Vietnam is a net exporter of rice and many other agricultural goods, including cashews, pepper and coffee. Gross Domestic Product (GDP) during that time period averaged between 7 to 8 percent annually. Vietnam, which is ironically officially known as the Socialist Republic of Vietnam, is in the process of what Ambassador Cuong calls “phase two” of reforms. He said the Southeast Asian nation already boasts the second highest GDP growth rate in Asia and is investing heavily in infrastructure like new sea ports, airports, rail and highways. It is also looking to attract more high technology investment. Ambassador Cuong called the Asian-Pacific region the “most dynamic in the world” and the “engine for growth globally.” He said Vietnam’s advantage is its stable political system and its Attendees at the spring meeting hosted by WMC and the U.S. Chamber of Commerce. From left to right: Ted Kiel, Wisconsin “very pro-business government.” The Trans Pacific Partnership World Trade Center; Rick Chandler, Wisconsin Department of (TPP), of which Vietnam and the U.S. are prospective members, Revenue Secretary; Bill Rushing, Berntsen International; Nguyen is a model progressive multilateral trade policy essential to the Quoc Cuong, Vietnamese Ambassador to the United States; Dick economic development of the region. This far-reaching trade pact Wilkey, Fisher Barton, Inc.; and Randy Dunham, UW Madison is currently in substantive political and trade-related negotiations. School of Business.

Wisconsin Business Voice 5 HUMAN RESO How a Bill Becomes a…War on Women? By Rebecca Hogan, WMC Director of Health and Human Resources Policy

Act 20, provides that a person alleging generalizations and often inaccuracies a violation of the Wisconsin Fair that deepen the division. Legislators Employment Law may file a complaint themselves make misstatements, with the Department of Workforce intentional or not, that add to the Development. If a hearing examiner confusion. What results is a populace finds a violation, the examiner may order who believe what they read and such action as will effectuate the purpose encourage misinformation. of the Fair Employment law, including I opened my Facebook page and saw a reinstatement of the employee and posting from a friend who grew up here payment of back pay, attorney fees and and now lives in Minnesota - “Governor costs. Walker repeals a woman’s ability to sue So the difference between the law now for workplace discrimination.” rior to joining WMC, I was a state and a session ago comes down to money, legislative staffer for about eight Lilly Ledbetter, famed women’s activist, and how much you think is enough. was writing columns for our state Pyears. While at the Capitol, I had Your side of the issue is determined the privilege to see and participate in newspapers crying foul on the repeal of by whether or not you think back pay, this law that creates “pay equity” in the the creation of numerous Wisconsin attorney fees and costs (and potentially laws. Diving deep into an issue and workplace. (Let’s tackle the reality of the punitive and compensatory damages pay equity issue in another column, shall thoroughly understanding the benefits in federal court) are sufficient for and consequences of a bill’s passage was we?) someone who has been a regular part of my day. It was this work discriminated I wrote an April op-ed that gave me a deep appreciation for the against in the The difference appearing in the Wausau creation of public policy. It also made workplace. between the law now and Daily Herald dispelling me keenly aware of the potential for Let’s also be some of the mistruths. negative consequences. clear that the a session ago comes down PolitiFact gave a WMC worked diligently this session, on complainant to money, and how much false rating to then behalf of its members, to repeal can be a person gubernatorial candidate Act 20 from the session prior. You may of color, a person you think is enough. Tom Barrett for remember, Governor Jim Doyle allowed with a different claiming Walker said “no” complainants, for the first time ever religious background, a to equal pay for women. Yet and with support of the democratic- man, a woman. You get the point. the distortions continued. controlled legislature and trial attorneys, So the obvious response must be, “This is It is likely that WMC, as Wisconsin’s to bring action in state circuit court a ‘War on Women’.” Insert audible sigh leading business trade association, will to recover punitive and compensatory here. routinely be involved in contentious damages in an employment issues. Let’s hope the policy debates discrimination case. Governor Walker It is irritating when something so moving forward will be based on facts and the legislature were supportive of the straightforward, frankly something that instead of hyperbole and political repeal and the less-than-two-year-old can be characterized as a simple swing in gamesmanship. BV law went away. tort law, is so misconstrued. The non-partisan Legislative Council It is political rhetoric that pushes people further into their camps. The Follow Rebecca on Twitter explains it well. Current law today, @Rebecca_Hogan and prior to the implementation of internet generation posts sweeping

Honoring Exceptional Environmental Efforts in Wisconsin

his May, nine companies received the prestigious Business Friend of the Environment Award for leadership in pollution prevention, environmental innovation and environmental stewardship. An independent judging panel representing industry, the Department of NaturalT Resources, and academia selected the award winners from a pool of 25 nominees. Celebrating its 23rd year, this awards program recognizes private industry companies headquartered or with significant operations in Wisconsin. Awards were presented at a luncheon at the Country Springs Conference Center in Pewaukee. Featured speakers included Senator Neal Kedzie (R-Elkhorn), pictured above left, and DNR Secretary Cathy Stepp, pictured above right.

2012 Business Friend of the Environment Award Winners Environmental Innovation Wisconsin Association of Independent Colleges and Environmental Universities, Stewardship Madison Linetec, Wausau Monona Terrace Community and WS Packaging Group, Convention Center, Inc., Green Bay Madison Wisconsin Economic Development Corporation, Pollution Madison Prevention Phillips Plastics Corporation, Eau Claire EOG Resources, Inc., Chippewa Falls Century Foods International, Sparta SC Johnson, Racine

2012 Business Friend of the Environment Nominees 3M, Prairie du Chien Jennie-O Turkey Store – Monona Terrace SC Johnson, Racine Wisconsin Association of Brillion Iron Works, Brillion Barron, Wisconsin Plant, Community & Convention SCA, Neenah Independent Colleges & Barron Center, Madison Universities, Madison Century Foods International, St. Elizabeth Hospital Sparta Kimberly-Clark Packaging Corporation of (Affinity Health System), Wisconsin Economic Experimental Mill, Neenah America (PCA), Tomahawk Appleton Development Corporation, EOG Resources, Inc., Madison Chippewa Falls Linetec, Wausau Phillips Plastics Corporation, ThyssenKrupp Waupaca, Mercury Marine, Fond du Eau Claire Waupaca Wisconsin Public Service, Green Bay Packaging Inc., Green Bay Green Bay Lac R.A. Smith National, Inc., Veolia Environmental Milk Source, LLC, Brookfield Services, Milwaukee WS Packaging Group, Inc., J.F. Brennan Company, Inc., Green Bay La Crosse Kaukauna Sargento Foods Inc., Plymouth A Place We Won’t Return From Regardless of healthcare ruling, Wisconsin is moving forward with value-driven reform By Eric Borgerding, Executive Vice President, Wisconsin Hospital Association

ive years ago, the Wisconsin Act, and that will continue regardless of • Wisconsin is home to emerging Hospital Association (WHA) ran a the Court’s ruling. Wisconsin providers, “accountable care organizations” Ffull-page newspaper ad congratulating and many payers, are heading to a place that improve quality and reduce our members for helping Wisconsin they are “not going to come back from” costs through more direct care achieve the top spot in the national and we need to keep our foot on the coordination. quality rankings. Our message then was: gas. Reform here is hastened by the • Healthcare payment in Wisconsin “Congratulations to the leaders and combined forces of federal and state is moving away from unit pricing/ caregivers at Wisconsin’s hospitals for your deficit reduction and, as importantly, the fee-for-service, toward rewarding tireless pursuit of excellence in patient need for healthcare cost containment outcomes and quality. in a nationally and globally competitive care. Improving healthcare quality and • Wisconsin health systems are economy. value is healthcare reform.” reducing operating expenses through Forward to March 25, 2011, when then- In many ways Wisconsin is leading a adoption of LEAN and other WHA Board Chair and Aurora CEO national transformation, an effort to efficiency initiatives borrowed from Nick Turkal told the Milwaukee Business repurpose and retool the structures of industry. Journal: healthcare delivery and financing. We These are glimpses of solutions, are moving away from volume-driven, “All the dialogue and all the debate has directions we are heading, but not a place fee-for-service reimbursement, and we’ve arrived. Healthcare still consumes pushed the (healthcare) industry in a toward a system that must both demand way that it is not going to come back too much of our GDP, federal budget, and reward better quality and better state budget, personal budgets and from… changes around value-based outcomes, and which will ultimately reimbursement are coming, regardless of employers’ budgets. Some in the business produce more value for our healthcare community have criticized the pace of what happens in D.C., and I think for dollars. businesses and consumers that’s a good improvement in healthcare, and they are thing.” Value-focused reform will set Wisconsin not wrong. But things are moving in the apart from other states. Here’s why: right direction. One year later, WHA sent a letter to several leading Wisconsin business • Last month, Wisconsin was ranked There is a good story taking shape in organizations engaging them in the second in the nation for healthcare Wisconsin, and we should tell it. High- healthcare quality discussion: quality by the federal Agency for quality, high-value healthcare can be Healthcare Research and Quality. a competitive advantage for this state, “Improving quality and achieving better • Wisconsin is the home of national and should be as much a part of our outcomes not only benefits our patients, leaders and pioneering organizations economic infrastructure as roads and but also helps create a more attractive in the quality and value movement. utilities. Few other states are as well Wisconsin business climate. High quality positioned to succeed, if not thrive, in the • Wisconsin has a strong presence healthcare can make Wisconsin a more emerging value dynamic–a strength that, of integrated hospital and health competitive place for employers to locate working together with business, we can systems, with employed physicians or expand.” transform into a Wisconsin competitive communicating and aligning toward advantage. In many parts of the country, talk by a common goal–better outcomes. healthcare leaders of improving quality, • Wisconsin’s balanced medical What we said five years ago is more true or shifting from generating volume today–improving healthcare quality and to focusing on value, or the notion of malpractice/tort system, preserved with strong support of WMC, value is healthcare reform. Regardless outcomes-based payment would be of how the Supreme Court ruled on considered foolhardy, or worse. But not in attracts top quality doctors to our state. healthcare, Wisconsin must accelerate Wisconsin. down this reform path. BV • Wisconsin hospitals and health And today, on the heels of the U.S. systems are national leaders in Eric Borgerding is Supreme Court’s healthcare decision, the Executive Vice transparent and accountable quality and with pivotal national elections on President at the improvement. the horizon, many across the country are Wisconsin Hospital • Wisconsin ranks second in the Association. He can pondering the prospects for healthcare be reached at reform. But not in Wisconsin. nation in adoption of error-reducing (608) 274-1820. electronic health records technology. In Wisconsin, improving quality and value is healthcare reform that began before passage of the Affordable Care Wisconsin Business Voice 9 MADEMade In Wisconsin IN WISC isconsin is known worldwide for certain things, among them are our culinary delicacies – beer and cheese. And we’re darn good at making those. But we make some other really cool things here in the great Badger State, and we think many people don’tW realize those products come from our own backyard. Here’s a smattering of products made in Wisconsin…

Shrinky Dinks St. Croix Fishing Rods www.shrinkydinks.com www.stcroixrods.com

K & B Innovations, Inc. in North Lake, are the originators and We have to mention St. Croix manufacturers of Shrinky Dinks. If you were void the enjoyable fishing rods. These world-renown experience of baking your own Shrinky Dinks as a kid, here’s a rods are made in Park Falls. Founded quick run-down to explain what they are… Shrinky Dinks are in 1948 and now employing more made from a shrinkable plastic in myriad designs, and when than 150 dedicated people, St. Croix is recognized throughout placed into an oven in your own home the world as a pioneer in the development of high performance for two ‘magical’ minutes, they shrink to fishing rods. From the original multi-section bamboo fishing approximately one-third their original pole, to the now more than 700 rod selections, St. Croix is a size while becoming nine times thicker. model company, The very first Shrinky Dinks were sold located right in our on October 17, 1973 at Brookfield backyard. Square Shopping Mall. Since then, there have been more than 250 different Shrinky Dink creations.

Mathews Inc. Silver Spring Horseradish www.mathewsinc.com www.silverspringfoods.com

In 1991, Matt McPherson Ellis Huntsinger founded Huntsinger Farms, Inc. and its invented single cam technology subsidiary Silver Spring Foods, Inc. in Eau Claire in 1929. and revolutionized the archery Today, Silver Spring horseradish is grown on industry forever. Since then, it’s 9,000 acres in Wisconsin and Minnesota been a fast and furious stream farmland, and is the number one retail brand of innovations that have brought the modern compound in the United States. Currently owned by Ellis bow to where it is today. Mathews Inc. of Sparta currently Huntsinger’s granddaughter and her two employs a staff of over 300 people and operates three sons, the company has been family owned local facilities to a diverse line of archery equipment, bow and operated for over 75 years and through components and accessories for authorized retailers all four generations. BV over the world. Year after year, Mathews Inc.’s pioneered and patented technology improves bow performance and sets new industry standards. Contact Katy Pettersen, [email protected] if you are interested in having your product featured in Wisconsin Business Voice.

10 The Time to Support Pro-Business Lawmakers is Now! WMC Conduit and PAC Fund Pro-Growth Candidates By Jim Pugh, WMC Director of Public Affairs

for our aggressive issue advocacy follows up daily at the State Capitol! campaigns, we continue to offer other You can deposit an unlimited amount of options for business executives to personal funds in your WMC Conduit support pro-business candidates for account and all disbursements require Legislature. your personal approval. Many business executives support In 2012, Wisconsin will again be at candidates for the Legislature through the center of the political firestorm as direct giving to candidate campaign President Barack Obama seeks re- committee. WMC offers additional election and tries to win our state. vehicles to provide financial support to WMC spent $5 million to educate the strengthen the business agenda. n 2011, Wisconsin’s business public about the importance of jobs community witnessed one of the WMC PAC and the economy leading up to the Imost pro-growth legislative sessions in recent recall elections. And the pro- WMC’s Political Action Committee state history. Senators and Assembly jobs candidates won! That sent a clear provides support to pro-business Representatives worked with Governor message to our state that we are headed candidates. The WMC PAC can also Scott Walker to improve our state’s in the right direction. engage in express advocacy independent business climate, and we are seeing expenditure campaigns to promote the We now need to capture the energy from results. election or defeat of clearly identified those victories with even more success Positive pro-growth reforms that candidates. The personal limit is $10,000 in the fall of 2012 by re-electing the were only a dream a few years ago annually, and corporate donations are lawmakers who supported the business are now law. We have seen passage not allowed. WMC PAC can accept agenda in the most recent legislative of a manufacturers’ income tax credit, unlimited PAC-to-PAC transfers. In session. comprehensive lawsuit reform, other words, if your company has a state Please, write a check today to the WMC significant regulation relief, a balanced PAC, it can make an unlimited transfer Conduit to set up your personal account, budget and collective bargaining reforms to the WMC PAC. PAC donations are then write a check to the WMC PAC. for government unions. Wisconsin’s disclosed under Wisconsin law. Mail them to WMC at P.O. Box 352, business climate has improved from near WMC Conduit Madison, WI 53701. Contact me the bottom, according to CEO Magazine, directly with any questions, to among the top half of states. Think of the WMC Conduit as your [email protected], (608) 258-3400. Now the legislators who passed those political checking account that provides We need to keep the momentum going! historic reforms will face the voters this the biggest bang for your buck in Your financial support will help us get fall. WMC’s analysis has found that 77 Wisconsin politics. Your donation is the job done in 2012 and beyond. BV legislators voted for the business agenda fully disclosed to the candidate of your choice, and it comes with a letter from *Visit WMC’s website for more more than 70 percent of the time. Those information on the legislative voting WMC stating your donation came lawmakers are the WMC Working records: www.wmc.org/issues/issues- for Wisconsin Award winners.* And, from the WMC Conduit. We remind policy/legislative-voting-records they deserve the business community’s candidates that our policy agenda is the support! While WMC has become top legislative priority for the business increasingly well-known and respected community. And our team of lobbyists

Wisconsin Business Voice 11 WORKFORCESolving the Workforce Paradox – We’ve Only Just Begun By Jim Morgan, WMC Foundation President

 Traveled to all 16 Wisconsin level of demand for their degree/career, Technical Colleges to deliver our review salary expectations and even, dare message. . . hence the opening about I say, consider the return on investment. 3,000 beautiful Wisconsin miles!! If every 16-year-old, and their parents, Although manufacturing and the skills have the information and complete shortage have received quite a bit of understanding of (and open mind to) the media attention lately, there is a long way occupations available – particularly in to go. We know that about 30 percent manufacturing at this point – I believe of the jobs in Wisconsin will require a we will work through this shortage. To bachelor’s degree or more. That means accomplish that though, there is much 70 percent do not, with the vast majority work to do! For those of you old enough of them requiring technical education to remember The Carpenters singing hree thousand beautiful Wisconsin beyond high school. What seems to be duo, “We’ve only just begun.” miles, 16 technical colleges, 1,200 missing in the current system is a broader Next on the horizon for the WMC people,T some great success stories understanding by today’s students of the Foundation are the following initiatives: and, unfortunately, some continued jobs available. They simply cannot select frustration. That is as concisely as I can an occupation they don’t know exists. • Interviewing students on their put the WMC Foundation’s efforts over They do not know what a welder does; knowledge and understanding of the past three months as we continue they do not know what a CNC operator manufacturing and manufacturing to work on the workforce paradox in is; they have never seen the inside of a jobs and identifying the disconnects Wisconsin! modern day, advanced manufacturing between perception and reality. In the last edition of Business Voice, facility; and they do not have accurate • Launching “Manufacturing Month” we outlined our plans for assisting job data and salary information. The in October (see next page). employers, particularly manufacturers, same applies to their parents. And all of • Developing toolkits for local in solving the workforce paradox – high us (e.g. employers, educators, parents, chambers of commerce, educators, unemployment, yet difficulty hiring. media) share that blame. employers and schools to provide Since the spring publication, the When the WMC Foundation recently assistance in connecting education Foundation has: conducted more than 50 listening and jobs. sessions with over 300 manufacturers • Held a conference for 275 business • Working with elected officials on from around Wisconsin, we summarized people, educators and state agencies effective policy changes to ensure a a few key findings. One that I have outlining strategies. quality workforce. been arguing is we need to change the • Hosting the Second Annual • Posted the inaugural best practices definition of “success.” As a parent, Workforce Paradox Conference in from around Wisconsin. you want your child(ren) to be healthy spring 2013. • Presented the opinions of more than and happy, doing something they love, 300 manufacturers to local chambers and able to live comfortably. If they Right now, there are shortages of of commerce, state officials and accomplish that, I would argue they have engineers, welders, CNC operators, business groups. achieved success. This is America, and machinists, and electromechanical technicians. Some of these positions • Developed the “Wisconsin Working” everyone should be encouraged to pursue require work experience, some plan to focus on best practices; their passion. However, I believe we owe apprenticeships, some technical degrees, improve the image of manufacturing; students a reality check and perhaps and some four-year degrees or more. consult with communities trying to even a “Job Probability Index;” in other Our ability to match supply and establish a workforce game plan; and words, what are the odds I will find a job demand in the workforce may very well reach out to education, employer in my chosen field. We should discuss be the strategic advantage that makes and workforce groups to coordinate the passion they wish to pursue, provide Wisconsin the most competitive state in efforts. information on what it will take to reach it, explore the costs involved, evaluate the the nation. BV job prospects upon completion, study the Follow Jim on Twitter @JimMorgan1960

Wisconsin Business Voice 13 TORTTort Reforms REFORMMoving Wisconsin Ahead By Jason Culotta, WMC Director of Tax and Transportation Policy

our state Supreme Court issued several care to a trespasser, placing case law into unfavorable opinions in 2005. state statute. Act 2 contained the following provisions: In addition to these changes, the establishing strict product liability using Legislature also repealed punitive and the same standard to prove a defect that compensatory damages allowed under 46 other states use; capping punitive the Wisconsin Fair Employment Act damages at $200,000 or two times (WFEA) in 2009 that were driving up compensatory damages; eliminating settlement costs for employers. While use of the “Risk Contribution” theory criticized by some commentators as adopted by the Supreme Court in being a tool of gender discrimination 2005, under which Wisconsin was the (state statute has long called for equal only state in the nation to discard the pay for equal work and continues to do iven the rancor surrounding traditional proof of direct liability for a so), the new law – Act 219 – preserves collective bargaining changes and product liability claim and instead made the traditional remedies available to Gthe recall elections of the past two years, all manufacturers of a given product workers: reinstatement, up to two years little attention has been paid to the collectively liable for a defective product; of back pay, and the cost of legal fees. significance of the tort reform measures improving expert witness testimony by WMC supports the existing equal pay adopted in Wisconsin last year. adopting the Daubert standard used by for equal work statute. WMC and our coalition partners in the the federal system and 30 states; and Some of the reforms considered by the Wisconsin Civil Justice Council led the adopting a frivolous claims statute that Legislature but left undone for 2013 way as the Legislature passed major tort allows those bringing such a suit to be include removing felony convictions reforms during the January 2011 special held liable for the costs and fees of the from the list of protected classes under session followed by another series of lawsuit. the WFEA and adopting a healthcare proposals in the September 2011 special The September 2011 reforms included apology law which would make session. The chairmen of the legislative three bills which were signed into law. statements by healthcare providers to Judiciary Committees, Senator Act 69 changed the interest rate on patients exempt from admission as Rich Zipperer (R-Pewaukee) and judgments from a fixed 12 percent rate, evidence in civil and administrative Representative Jim Ott (R-Mequon), one of the highest in the nation, to a proceedings. deserve special recognition for their roles more contemporary standard of the in shepherding these bills through the The reforms adopted during the 2011 Federal Reserve prime rate plus one legislative session are helping to make process and seeing them signed into law percent. Act 92 adopted a standard for by Governor Walker. our civil justice system more predictable determining how reasonable attorney and fair. While more work remains to The January 2011 reforms were fees are set, using factors defined by the be done, Wisconsin has taken a big step approved as a comprehensive package state Supreme Court; in addition, Act forward. BV known as Act 2. Taken together, these 92 limited attorneys’ fees to no more changes reversed the “Alabama North” than three times compensatory damages. Follow Jason on Twitter @JGCulotta moniker The Wall Street Journal had The third law, Act 93, provided that a famously applied to Wisconsin after property owner does not owe a duty of

According to the study by the Brookings Institution, the cities with the most manufacturing jobs in Wisconsin are:  Sheboygan – 30.9% of total employment are manufacturing jobs  Oshkosh-Neenah – 25.5% of total employment are manufacturing jobs  Racine – 21.7% of total employment are manufacturing jobs  Fond du Lac – 18% of total employment are manufacturing jobs Among the top 100 metropolitan areas in the U.S., Milwaukee ranks 6th at 13.8% of total employment are manufacturing jobs

14 DISC - Maximize Your Manufacturing Incentives By Patrick Sweet, President and CEO, Profit Point Tax Technologies

ne of the very few things both service providers are unaware it still Publicly Traded political parties seem to agree exists, and few have the expertise and and Privately Held Oon these days is the desire to boost software to truly maximize the associated American manufacturing. This goal tax benefit. Companies: Do You Have has resulted in a set of manufacturing By setting up a DISC (which can cost as a DPAD “GAP”? incentives - the Domestic International little as $5,000), a company can lower its Starting in 2005, Congress enacted Sales Corporation (DISC) and the effective tax rate and increase cash flow. Domestic Production Activities the Domestic Production Activities Whether you’re a flow-through entity Deduction (DPAD) so that a Deduction (DPAD) - that can both or a privately owned C-Corporation, a increase exports and reduce federal company no longer needs to export DISC can provide an annual tax savings U.S. manufactured products in order income taxes on U.S. manufactured because of the gap that exists between goods. While many companies know to receive a manufacturing incentive. the Ordinary Tax Rate (currently 35 In fact, privately held companies are about these incentives, surprisingly few percent) and the Qualified Dividend take full advantage of them. permitted to claim both DISC and Rate (currently 15 percent). DPAD incentives on every qualifying When asked about these incentives, If You Have a DISC, transaction. most companies think they have them covered. Unfortunately, they rarely are You Calculating Whether you are large or small, take a do. They’re like the individuals who the Benefit on Every look at your Form 8903 from your most recent federal income tax return. If line overpay their income taxes by taking the Transaction? standard deduction when they should be 11 is greater than line 10b, you have a itemizing. Most companies are taking The DISC is a transactional calculation gap. Experience has shown that, through the equivalent of a standard deduction and regulations provide 13 different ways careful analysis, it is possible to further relating to these tax incentives. to calculate the associated incentive for maximize the deduction and close the every transaction. Few companies provide gap with the taxable income limitation. Whether your company is large and If you have a gap, it is likely that you publicly-traded or small and privately- transactional (SKU level) information to their accounting firm. So, how can your aren’t taking full advantage of this held, where do you fall? Ask yourself incentive. Period. these three questions: accounting firm maximize your DISC incentive without transactional detail? In the end, whether the tax benefit is Privately Held Put simply, they can’t. $1,000 or $1,000,000, it belongs to Companies: Do You Have For one company that exports $3 million your company. You have already done a DISC? per year, the reduction in federal income the hard part – manufactured and sold taxes associated with their DISC without the products. Now you deserve the Even if your export sales are relatively performing transactional calculations appropriate tax benefits. BV small, even if only 50 percent of your was $1,400 per year. Calculating their Patrick Sweet is product is made in the U.S., or even if DISC benefit on a transactional basis the President and you don’t export your product at all, but reduced their federal income taxes by CEO of Madison- sell to a company that does, these tax $26,000 per year. Another company based Profit Point incentives are available to you. that exports approximately $11 million Tax Technologies specializing in per year saw their federal income taxes Privately-held exporters should be federal income asking, “Are we maximizing the tax reduced by an additional $160,000 tax manufacturing benefit available to us and, if not, why (their manufacturing incentive went incentives focused primarily on not?” The answer may lie in a DISC. from $140,000 to $300,000) by transactional calculations. The DISC legislation was enacted in using transactional calculations. A 1971 to encourage the exportation of transactional approach will often lead U.S. manufactured goods. In 1984, to at least a doubling of the tax benefit, the DISC legislation was replaced by without any change in business practices. the Foreign Sales Corporation (FSC) If you aren’t performing a transactional legislation, but the DISC legislation calculation, you aren’t taking full still remains. The DISC was rarely used advantage of this incentive. between 1984 and 2003 and, because of this 20 year period of minimal use, some

Wisconsin Business Voice 15 FINANCIAL

16 BAd for Business? The verdict is still out on how much the two-year-old Dodd-Frank Act will impact banks’ ability to lend By Becky Nelson

t’s supposed to modernize capital To date, there are 110 finalized rules, 144 markets regulation and end the practices proposed rules and another 144 rules that Ithat led the nation into economic despair. have not yet been proposed. Instead, the Dodd-Frank Wall Street “There’s no speed sign like on the highway Reform and Consumer Protection Act where you say, ‘OK, that’s the law, I’ve – a 2,300-page law signed on July 21, got to go 55.’ As an industry, to prove our 2010 – is expected to add layer upon layer compliance, we’re writing down all the FINANCIALof regulation on Main Street financial time how fast we’re going – how fast at institutions. Many worry the result will three o’clock, how fast at three-thirty,” be increased costs to consumers and even said Mark Meloy, President and CEO of tighter credit standards for both consumer Madison-based First Business Bank. credit and commercial lending. The cost structure of a Dodd-Frank is compared to the Glass- $100 million in assets Steagall Act, the landmark banking can be compared to a “Right now we’re seeing law from the 1930s that separated manufacturer with commercial banks, insurance companies $3 million to a heavy swing toward and investment banks. That law, as well as $4 million in annual several others – the Securities Act of 1933, revenue, Meloy said. over regulation.” the Securities Exchange Act of 1934, Adding an employee the Commodity Exchange Act of 1936 to deal with added and the creation of the Federal Deposit reporting and compliance, at an estimated Insurance Corp. – was a direct response to $80,000 in salary and benefits, can be the stock market crash of 1929. equal to the company’s annual profit. Likewise, Dodd-Frank was a response to “That’s the anxiety level at this point in the economic crash of 2008, and it aimed time,” he said. to prevent future taxpayer-funded bailouts Changes for Banking of those deemed “systemically important financial institutions.” But Dodd-Frank “The difficulty with Dodd-Frank is goes much further, impacting financial that there are 16 titles to it,” said Chris services companies of every size and even Timm, Audit Partner at Grant Thornton, extending into non-financial dealings. Milwaukee. “There is an avalanche of small things that really add up to big For example: one provision (introduced by compliance requirements. Our clients are former Democratic Sen. Russ Feingold) struggling with interpreting, applying and requires companies to examine their implementing all of the rules.” supply chain to avoid support for so-called “conflict minerals” from Africa. Perhaps Some of the specific provisions that will the most daunting aspect of Dodd-Frank cause the biggest impact on banks of all is the uncertainty of what’s to come. sizes, and their customers, are: The Act contains 398 rule-making requirements for various federal agencies.

Wisconsin Business Voice 17 Mortgages. One title is devoted specifically to mortgage institutions collect and lending – one of the areas bankers are most concerned about, report information from said Rose Oswald Poels, President and CEO of the Wisconsin credit applications made by Bankers Association. women- or minority-owned For example, mortgage lenders will have to scrutinize businesses and by small businesses. borrowers’ ability to repay more closely as one component Executive compensation. The boards of of a loan that would meet the “qualified mortgage” category. publicly traded companies now have a In addition, under a new risk retention requirement, banks “say on pay” vote by shareholders, which that sell their mortgages to a third party will have to retain a affects institutions such as Green Bay-based certain percentage of each loan in their own portfolio. Associated Bank. Consumer laws. Dodd-Frank created the Consumer Volcker Rule. This rule prohibits larger institutions from Financial Protection Bureau, which opened on July 21, 2011, engaging in proprietary trading and from having certain and is now led by former Ohio attorney general Richard relationships with hedge funds and private equity investment, Cordray. By next year it expects to have a staff of 1,400 and which will likely indirectly affect liquidity in the marketplace. spend $448 million. Some say this rule, which goes into effect in July 2012, could Consumer laws from other federal agencies now fall under have prevented JPMorgan Chase’s recent $2 billion trading the CFPB’s jurisdiction, particularly those related to mortgage loss. However, according to Forbes, when JPMorgan Chase’s lending. One of the agency’s first projects has been to re-write CEO Jamie Dimon was asked about the Rule during the mortgage disclosures – one of which had just been revised in recent Congressional hearing, he answered: “I don’t know January 2010 – resulting in the need for new forms, software what the Volcker Rule is. It hasn’t been written yet.” Sen. Jack and training at minimum. Reed continued with the Volcker questioning finally getting Dimon to say that it’s “possible” the trades would have been The CFPB also will regulate unfair, deceptive or abusive banned under Volcker. practices, which will extend beyond regulated financial On the positive side, Dodd-Frank changed the way banks’ institutions to non-traditional lenders, such as finance deposit insurance premiums are assessed. Now calculations companies. are based on assets rather than deposits, which benefits Interchange fees. The Durbin Amendment to the Dodd- community banks. Frank Act regulated what banks can charge for payment The law also repeals the ban on the payment of interest on card transactions. The cap on each “swipe fee” was virtually demand deposits. That’s good news for business customers. cut in half, to 21 cents, severely limiting banks’ fee income. “Even though rates are very low right now, it provides Viewed as another example of government intrusion on free opportunity for businesses,” Meloy said. enterprise, consumers will feel the result as banks end free checking accounts and card reward programs. Impact on Lending Capital requirements. At a basic level, Dodd-Frank imposes John Moniak, Senior Manager-Regulatory Compliance in the stricter capital requirements on financial institutions and Financial Institution Practice at Wipfli LLP in Madison, said their holding companies, businesses haven’t yet begun to feel the impact of the two- reducing the money that year-old law or its unintended consequences. “The pressure banks have to lend and we’re feeling right now is from regulations enacted prior to impacting the cost of Dodd-Frank,” he said. funds. “I’ve been in regulatory compliance for more than 20 years “Even for smaller and I’ve seen the pendulum swing both ways,” Moniak said. institutions that might “Right now we’re seeing a heavy swing toward overregulation. not necessarily be It’s concerning because the effect will be constriction of directly impacted by lending to consumers and probably increased fees.” Dodd-Frank, we’re going How much is unclear. “Unfortunately, we can’t say it’s going to to see best practices cost 10, 20 or 30 percent more that are going to be developing in addition to regulatory because we really don’t know,” requirements. Regulators are definitely requiring a much he said of compliance costs. higher capital cushion than they have historically required,” “The consequences might be said Tom Homberg, a shareholder at Milwaukee’s Godfrey & far-reaching in how a bank Kahn, S.C. and Team Leader for the Banking and Financial delivers products.” Institutions Practice Group. “The impact of Dodd- Reporting requirements. The Dodd-Frank Act amends Frank on business lending the Equal Credit Opportunity Act to require that financial is sometimes overstated,” 18 Homberg said. “The reality is that we’ve been going through and community banks. “They’ve got this excess capital and a very difficult economic cycle for many years now, perhaps required reserves. That really drives lending decisions that are one of the most difficult recessionary cycles since the Great based on compliance with regulation and not necessarily the Depression. There are all these other factors affecting lending underlying credit risk,” said Grant Thornton’s Timm. and the industry as a whole.” What’s clear is that Dodd-Frank is adding to the overall Regardless of the source of the pressure, the small business or regulatory environment, and it works both ways. manufacturer who has worked with a Wisconsin community “It’s all part of a bigger package,” said Daryll Lund, President bank or a relationship manager at a national bank with a of the Community Bankers of Wisconsin. “Banks still want strong presence in the state will likely see increased costs in to make loans. But the whole lending climate right now – the form of fees or rates fairly soon, explained Dan Gentges, including uncertainty in the tax and regulatory environment shareholder in the Milwaukee office of Whyte Hirschboeck – impacts the confidence level of businesses to take on Dudek S.C. and leader of the firm’s Finance Practice Group. additional debt.” Bank clients may also see a change in the way they work with Local and national business trade groups have been especially lenders. critical of the sluggish rate at which the regulators and “If you’re in a cyclical industry, for example, and you have Congress have introduced and implemented new rules. To rough patches here and there – in the past, many of those date, two-thirds of the clients have been able to work through those because they rulemaking deadlines have knew their banker, and the banker knew them and knew been missed. their business,” Gentges said. “But as a result of some of In its Financial Regulatory Dodd-Frank’s regulatory thrust, principally its concern with Reform Report Card for mitigating risk, they’re finding that they don’t have as much 2012, the U.S. Chamber flexibility.” of Commerce largely gave Some businesses may be disproportionately affected. “If their the Dodd-Frank Act an risk profile is a little more on the edge, lenders are going to be “incomplete” grade. “Failure a little less willing to make a loan they might have otherwise to get it right will deprive made,” he added. job creators of the investments, loans, and other forms of How Dodd-Frank will affect their ability to fund and provide credit they need,” the Chamber wrote. BV liquidity to small businesses is a major concern of regional Nelson is a Madison-based freelance writer.

Quality health plans & benefits Healthier living Financial well-being Intelligent solutions

Experience, consultations and claims management to meet your needs. Aetna Customized Absence Management Solutions

Contact Kate Palm at 763-561-1100 or Russ Cain at 608-661-6928 today. www.WhyAetnaDisability.com

Disability insurance plans are offered and/or underwritten by Aetna Life Insurance Company (Aetna).

Wisconsin Business Voice 19 Current and Upcoming Challenges to Dodd-Frank in Court By Donald A. Daugherty, Jr., Whyte Hirschboeck Dudek S.C.

ike the Affordable Care Act (ACA), The first direct statutory challenge split between two or more real estate Dodd-Frank has been challenged targeted Dodd-Frank’s limit on professionals, not an exchange of fees of Lin court since it first became law. Unlike “swipe fees” that banks charge retailers a company with itself. the ACA, where the entire statute when their customers use debit cards. Barring sweeping legislation that essentially turns on the individual However, a federal appeals court last undoes the reforms intended by Dodd- mandate provision now being reviewed year rejected the banks’ argument Frank, courts will continue to decide by the U.S. Supreme Court, Dodd- that such price controls amounted to disputes arising under the statute for the Frank is composed of numerous, an unconstitutional taking of their foreseeable future. BV disparate provisions, and some of them revenue without due process and just can survive independently of portions compensation. Donald Daugherty is that courts may strike down. This article a shareholder and Other suits contending that leader of the Business briefly overviews both current legal significant aspects of the regulatory & Commercial challenges to this sprawling, behemoth structure created by Dodd-Frank are Litigation Team at legislation, as well as others that are unconstitutional are all but certain. the law firm of Whyte expected to come soon. For example, courts should soon hear Hirschboeck Dudek S.C. in Milwaukee. He To a large extent, Dodd-Frank does not the argument that the statute’s grant directly regulate the financial services can be reached at (414) 978-5443 or of authority to regulators is too vague, [email protected]. and related industries, but grants broad giving them broad, discretionary authority to federal agencies to do so, authority without any real oversight by as well as to new agencies created by the President, Congress or the Judiciary. Dodd-Frank. Thus, most suits have The Consumer Financial Protection targeted rules promulgated by federal Bureau (CFPB), created by Dodd-Frank agencies under Dodd-Frank, and not the to regulate consumer finance and enforce statute itself. consumer financial laws, is most ripe for Business is good for Wisconsin. For example, challengers have persuaded such a suit. Wisconsin is good for business. courts to set aside regulations on the Another likely challenge will be to ground that they are not supported by a the procedure for liquidating failing proper cost-benefit analysis, such as the financial institutions (including insurers) Security and Exchange Commission’s that regulators deem “systematically “proxy access” rule, which made it easier important.” Under Dodd-Frank, the for shareholders like union pension U.S. Treasury Department initiates funds to nominate directors to corporate the process by filing a petition that the boards. Similarly, banking industry We agree there’s no better court can only reject on narrow grounds place for your business. groups sued the U.S. Commodity The Wisconsin Economic Development Corporation and its network of economic development partners and must decide in secret within 24 across our state are working together to help you start, grow or locate your business in Wisconsin. We are Futures Trading Commission in ready to put our leadership and network of partnerships to work for you. wedc.org/goodforbusiness

hours, and the process cannot be stayed African American Chamber of Commerce, Inc. Madison Gas and Electric Company Wisconsin Department of Workforce Development Alliant Energy Corporation Milwaukee Water Council Wisconsin Economic American Indian Chamber Milwaukee7 December 2011, contending that its Development Association of Commerce of Wisconsin Momentum West, Inc. Wisconsin Energy Corporation if the institution wishes to appeal to Association of Wisconsin Northwest Wisconsin Manufacturing Regional Planning Commissions Wisconsin Energy Research Consortium Outreach Center Centergy, Inc. Wisconsin Housing and Economic Prosperity Southwest Wisconsin Development Authority “position limits” rule on the number of Commercial Association The 7 Rivers Alliance of REALTORS® Wisconsin Wisconsin Manufacturers and Commerce a higher court. These rules may very The New North, Inc. Competitive Wisconsin, Inc. Wisconsin Manufacturing Thrive Extension Partnership Ethnically Diverse Business futures and swaps contracts that any one Associations Coalition Transportation Development Association Wisconsin Procurement Institute, Inc. of Wisconsin Greater Milwaukee Committee Wisconsin Technical College System well violate due process because the University of Wisconsin System Grow North Regional Economic Wisconsin Technology Council Development Corporation VETransfer Wisconsin Women’s Business Hispanic Chamber of Commerce Wisconsin Black Chamber of Commerce Initiative Corporation trader can hold in markets like gold or of Wisconsin, Inc. Wisconsin Business Innovation Corporation — Wisconsin Workforce targeted institution has no real notice or Hmong Wisconsin Chamber of Commerce Visions Northwest Development Association oil, was formulated without an adequate Integrys Energy Group Xcel Energy opportunity to be heard. WEDC20_4039_Post Election Ad Wall St Journal 0608.indd 1 6/8/12 3:07 PM cost-benefit analysis. More such suits are likely, given that a financial research Finally, although not implicating WMC is working with group has found that nearly one-third of Dodd-Frank directly, it is worth noting the Wisconsin Economic the regulations proposed under Dodd- that in May 2012, the U.S. Supreme Development Corporation to Frank lack rigorous cost-benefit analyses. Court unanimously rejected the CFPB’s spread the word that “Business However, these suits may only stall the interpretation of the Real Estate is good for Wisconsin, and inevitable result, as courts generally Settlement Procedures Act (RESPA), Wisconsin is good for business.” send such rules back to the agencies to which forbids providers of real-estate This ad touting WEDC’s perform the required analysis. At the services – title insurance, appraisals partnership with WMC and same time, delay is likely a goal in itself and the like – from taking kickbacks dozens of other economic for plaintiffs hoping for more permanent, or splitting the fees they receive. The development partners appeared in legislative relief after the November court held that RESPA’s plain language the Wall Street Journal in June. 2012 elections. covers only a settlement charge being

20 Small Business is Still Heart of Wisconsin Ask the WMC id you know that over 50 percent of WMC’s members are Board businesses with less than 100 employees? DA common misperception about WMC is that we are only for big business and that we don’t represent small business interests. Nothing could be further from the truth! In order to magnify the influence and voice of small businesses, WMC launched the Small Business Committee last year. Under the direction of Chairman Aaron Powell, Partner at Flexion, Inc., the committee was tasked with representing WMC small business members in front of decision makers and legislators, assisting in WMC lobbying efforts, and providing WMC with feedback on legislative priorities. The committee has met quarterly to discuss issues including workforce development, recall elections, and small business regulatory reform with members of the legislature, the administration, and WMC staff. As a result, WMC now has small business legislative priorities that complement our overarching Jobs for the Future policy agenda. WMC’s Small Business Committee has become a place for small businesses to learn from WMC and, more importantly, where WMC learns from small businesses. The passion the committee members feel for Wisconsin’s business climate and the role small business plays in our economy is second to none. WMC is eager to continue magnifying the voice of small business in our lobbying and advocacy efforts with the WMC Small Business Committee. Please contact Amber Schroeder at (608) 661-6907 or [email protected] if you are interested in learning more about the committee or would like to audit a committee meeting. BV

Aaron Powell, of Flexion, Inc. and Chair of WMC’s Small Business Committee, meets with Amber Schroeder, WMC Director of Membership.

Wisconsin Business Voice 21

Andis Company Celebrates 90 Years Product Line Has Grown from a Single Clipper to Hundreds of Hair Styling Tools he next time you get a haircut, expanded its markets,” notes Matthew Matthew K. Andis was named take a look at the clippers your K. Andis, President of Andis. President on June 1, 2010, and shares stylistT uses. There’s a good chance it was “We are honored to be one of the top the responsibility of guiding the manufactured right here in Wisconsin. companies in our markets. We are company with his two sisters, Marcia This year marks Andis Company’s 90th especially grateful to our dedicated Andis, Senior Vice President, Market anniversary. From its simple beginnings associates who have made countless Development, who oversees marketing, in 1922 when founder Mathew Andis contributions that have helped us product engineering and international first produced an electric clipper that expand our presence globally.” alliances, and Laura Andis Bishop, he engineered, the company’s product Senior Vice President, Finance, line has grown dramatically to include Production of the company’s first clipper responsible for IT, finance, and human everything from clippers, trimmers, and began in the basement of the Andis resources. Matthew L. Andis, their a full range of blades to hair dryers, flat family home in Racine. American father, still serves as Chairman. barbers quickly embraced it, and the irons, curling irons, and products for the Andis continues to grow globally. hospitality industry. manufacturing facility relocated into an industrial building. Today, Andis Almost 80 years ago Andis introduced The company manufactures has over 400 employees at its its products to Europe, and they are these products for a wide variety 160,000 square foot facility now available in 90 countries around the of markets, including barbers, in Sturtevant, Wisconsin. world. Barbers, stylists, groomers, and stylists, consumers, groomers for consumers everywhere continue to reach dogs, cattle and horses, and hotels The fourth for Andis clippers, trimmers, dryers, around the world. generation of the blades, curling irons and flat irons when Andis family is “By focusing on excellent quality and they want to rely on top performing now in charge of tools. BV listening to our customers, Andis has operations. increased its products and steadily

First Annual “Moving New Berlin Stealth Learning Forward” Career and Job Fair How Fun and Science Merge to Educate the op Floor Technologies joined efforts with the School Next Generation of Manufacturers District of New Berlin, the City of New Berlin, New ith the energy and excitement of a statewide sports BerlinT Chamber of Commerce and local businesses to host championship, the atmosphere at the BotsIQ the first annual career and job fair in May. More than 800 WisconsinW competition in May definitely gave a different vibe high school students had the chance from that of a stereotypical science fair. to meet recruiters and marketers from 50 businesses. The experiences The BotsIQ program gives high school students the for both the students and businesses opportunity to form teams and build a robot to compete in were inspiring and rewarding. “Battlebot” style contests. Two robots compete in three-minute bouts where the robots attempt to inflict damage on their

Photo Shane by Fell The career fair took place at New competitor to disable the other robot. Berlin West High School and featured three sessions: a career and Mike Retzer of Strohwig Industries called this “stealth Lt. Gov. Rebecca Kleefisch spoke job fair for students, job recruiting learning”- giving students the opportunity to learn about to the students, businesses and for community members, and a science and technology in a manner that’s fun and exciting. community members. luncheon featuring keynote speaker The program also gives Lt. Governor Rebecca Kleefisch and students education and business leaders. tools about the high- tech manufacturing “The goal of the job fair was to provide a face-to-face opportunities that are networking opportunity among local government, available in Wisconsin. BV schools and businesses,” said Dan D’Amore, Top Floor Technologies Senior Account Executive. “We wanted to create awareness for the high-quality, good-paying jobs that are available and close to home.” BV

Wisconsin Business Voice 23 ENERGY In the News America’s Self-Defeating Energy Policy By Scott Manley, WMC Director of Environmental & Energy Policy

lay to your strengths. For example, the EPA has recently targeted coal with costly It’s the foundation of any global warming regulations, new air quality standards, and Psuccessful business model. untenable mercury rules. Many of these rules are on a list Unfortunately, it doesn’t accurately released by the White House last year with projected costs describe our country’s approach expected to exceed $1 billion each. to energy. On the contrary, The fact that a federal agency can proceed with rules costing our national energy policy is a consumers and businesses many billions of dollars without textbook example of how to snatch the consent of Congress bespeaks the need for immediate defeat from the jaws of victory. regulatory reform. The United States has the largest Moreover, the EPA’s latest rule establishing global warming combined oil, natural gas and coal emission standards for power plants essentially bans the use of reserves of any country. We could literally lead the world in coal as a source of electric generation in the future. production of abundant and affordable energy – but we don’t. Do we really want unelected bureaucrats at the EPA making Instead of utilizing these bountiful resources to our nation’s policy decisions about our country’s energy profile, or should competitive advantage, we have largely placed them off limits, those decisions be left to the officials we elect to Congress? and unnecessarily driven up their cost with misguided policies The biggest problem with handing energy policy over to EPA and regulations. regulators is that they take their cues from the environmental Worse yet, we continue to senselessly prop-up more expensive lobby – and neither of them understands how markets operate. and less reliable energy sources with government mandates and They advocate replacing affordable, reliable and market- massive subsidies – at considerable cost to taxpayers. tested energy sources like coal with expensive and less reliable Consider the facts. We have enough recoverable oil to meet our alternatives. Disrupting the market by mandating or subsidizing nation’s petroleum consumption for 200 years. We also have less efficient and costlier “alternative” energies is a losing enough recoverable natural gas to meet demand for at least 100 proposition for consumers and taxpayers. years. However, federal policies restrict exploration of onshore For example, federal subsidies for solar and wind power in energy potential to less than six percent of land resources, and 2010 were $775.64 and $56.29 per megawatt hour respectively. only two percent of offshore resources. As a result, much of this By contrast, federal subsidies for coal and natural gas were energy has been placed off-limits. orders of magnitude lower at 64 cents per megawatt hour. The We are on the cusp of a potential energy renaissance by highly publicized failure of Solyndra, despite $535 million in unlocking billions of barrels of oil trapped in shale rock taxpayer-funded loans, underscores the folly of investing in formations through hydraulic fracturing or “fracking” uncompetitive technology. technology. We also have roughly 2.6 trillion barrels of Compounding the poor economics is the practical question recoverable oil shale resources located in three western states. of how to replace coal as our primary source for electricity – a To place this potential into perspective, our oil shale deposits question heretofore left unanswered by the EPA. Last year, are five-times larger than Saudi Arabia’s proven oil reserves. Yet wind and solar accounted for only 2.94 percent of our electric one of the Obama Administration’s first acts after assuming generation – we simply cannot expect to replace fossil fuel office was taking these promising resources off the map by generation with niche energy sources. withdrawing oil shale leases for research and development. Our country is in desperate need of an energy policy overhaul, Our energy playbook continues to get worse when you and unfortunately, it’s a self-inflicted problem. We are blessed consider the treatment of coal. Our country has the largest coal with plentiful energy resources, but have failed to leverage them reserves in the world – 261 billion tons. It’s enough mineable to our strategic advantage by adopting restrictive policies and coal to last 485 years at current rates of consumption. This punitive regulations. abundant and affordable fuel provides about 65 percent of If we want to revitalize our economy and grow jobs in the Wisconsin’s electricity, and powers production for thousands of future, businesses and consumers must have access to affordable manufacturing jobs in our state. and reliable energy. The resources are there – will policymakers Despite our vast coal resources, the Obama Administration and regulators continue to stand in the way, or allow us to appears intent upon regulating coal out of existence. Making unleash their potential? BV good on his 2008 campaign promise to “bankrupt” coal, Follow Scott on Twitter @ManleyWMC President Obama’s EPA has written a slew of new rules that make using coal economically infeasible.

24 “They see that [Governor Walker] has been in their corner. He has enacted reforms that don’t just In the Newhelp the big guys,s they help everybody. But more “We aren’t telling our story. We need to change the importantly, he solved the budget crisis without perception of what manufacturing is like today.” raising taxes.” – Kurt R. Bauer, WMC President/ – Jim Morgan, WMC Foundation President, Green Bay Press CEO, Bloomberg TV, June 5, 2012 Gazette, May 24, 2012

According to a survey released last week by Wisconsin Manufacturers and “[Eliminating taxes for factory owners] was intended to Commerce, 62 percent of employers in the state say they plan to add employees enhance the competitiveness of all Wisconsin manufacturing over the next six months, an increase from 53 percent a year ago and 44 percent companies as they compete in national and global markets. It in December. Overall, the survey reported, 73 percent predicted moderate to good will cement the state’s position as a center of manufacturing growth at their own companies and more than half said they planned to expand for years to come and ensure there will be a ready supply in the state in the next two years – the highest rate in a decade. – The Wall Street of good-paying manufacturing jobs for our families and Journal, June 4, 2012 communities.” – James Buchen, WMC Senior Vice President of Government Relations, The Capital Times, May 23, 2012

“While most of Wisconsin is still talking about Tuesday's divisive recall elections, a delegation of state, university and business people are presenting a united front overseas. The group–including UW-Madison Chancellor David Ward, Wisconsin Economic Development Corporation Secretary Paul Jadin, state Agriculture Secretary Ben Brancel, and Wisconsin Manufacturers and Commerce president Kurt Bauer–is scheduled to land in Shanghai this weekend to tout Wisconsin products and build relationships. It's a good and needed reminder that we're all in this together after the bitter and unprecedented recall campaigns over the last year. And cooperation so often leads to the best results.” – Wisconsin State Journal Editorial, June 10, 2012

ByGearing Richard G. Chandler, Our Secretary, Tax Wisconsin Climate Department of Revenue for Growth

hen I talk with job providers about how Wisconsin This encourages entrepreneurs to start new companies that will ranks as a place to do business, they give our state good flourish here and become major employers as our children and marksW for having a hard-working, innovative workforce, a strong grandchildren enter the workforce. This new investment incentive education system, good infrastructure and a high quality of life. will build on the momentum created by a bipartisan “angel They also say that a competitive tax structure is an important part investment” credit adopted in 2003. of creating a good business climate. Third, Wisconsin adopted a state tax deduction that helps In the last year, we passed several key initiatives to create a pro- middle-class families manage their health care costs, along with growth tax structure and help our middle-class families. simplifying Wisconsin’s tax law. Last year, Wisconsin adopted a First, Governor Walker signed a manufacturing and agriculture state income tax deduction for contributions to Health Savings tax credit that will provide a strong incentive for companies Accounts that parallels the federal deduction. In particular, this to locate their production activities in Wisconsin. The helps self-employed individuals and small businesses’ employees manufacturing and agriculture sectors have traditionally been manage their health care costs. the twin drivers of Wisconsin’s economy. If those sectors bring Finally, we passed a job creation deduction to help companies money into the state, other sectors will thrive as well, including expand their operations in Wisconsin and pay for job training, construction, real estate, retail, and tourism. as well as a relocation credit for companies considering moving Advanced manufacturing businesses using sophisticated new their operations to Wisconsin. technologies and modern agriculture businesses create high- We’ve made great strides in improving Wisconsin’s tax climate. productivity, well-paying jobs that support innovation and These initiatives will help bring new business to Wisconsin, grow research. These sectors will lead the way as the nation rebalances our existing sectors, and generate family-supporting jobs across its economy. The new tax code will help us build on our longtime the state. BV strength in these sectors. The Wisconsin Department of Revenue helps Second, we created an incentive for people to invest in formulate state tax policy, administers the Wisconsin-based businesses. If someone invests in a Wisconsin- state’s major tax laws, collects individual based business and keeps their investment in place for at least and business taxes, and provides state five years, there will be no tax on the gain generated when the financial aid to local governments. Learn more at www.revenue.wi.gov investment is sold.

Wisconsin Business Voice 25 SAFETYThe Results Are In By Janie Ritter, Director of Wisconsin Safety Council

percent predicting to increase their issue. In fact, 84 percent of our survey safety staffing levels in the coming year. participants provide safety information Issues of top concern to employers and supplies to employees for use both center on government regulation/ on and off the clock. Employers realize compliance, employee turnover, aging risks continue to present themselves workforce, ergonomic injuries and outside the workplace, potentially motor vehicle safety. Competition resulting in absenteeism and lost with production, the lack of time and production. resources for training, management Finally, we asked what safety and health support, and complacency/absence of topics employers would like WSC to employee buy-in are cited as the biggest offer in the future. The most popular obstacles when implementing safety requests focused around the new his year marks the second year initiatives. Globally Harmonized System (GHS), the Wisconsin Safety Council programming for advanced safety (WSC)T conducted a statewide ‘State More and more companies are focusing on an all-employee approach for professionals, and additional health- of Wisconsin’s Workplace Safety’ related courses. survey designed to help WSC better safety and health training, noting it understand the current conditions is everyone’s job to ensure the safety WSC appreciates and values the of safety and health programs in and well-being of fellow workers. To feedback we received from the nearly Wisconsin companies. As the state’s help with this growing focus, WSC 400 survey respondents. We will work leading provider of workplace safety offers a popular course hard to continue to provide the safety training, we use the results of this entitled Creating and health programming survey to monitor trends in workplace a World Class Companies are Wisconsin companies safety and to guide our program Safety Culture need to ensure the offerings to the needs of safety which drives focusing on an safety and well- professionals. the premise all-employee approach for being of employees. that a safety The Wisconsin We are encouraged by the results of this program should safety and health training. year’s survey which show 56 percent Safety Council is not be driven by a division of WMC of respondents said they see their compliance, but because employee safety training increasing in and partners with more than 4,000 it protects your most valuable assets members to make Wisconsin safer and the next year. After the recent economic – your employees. Making changes in downturn, many companies have been healthier. Through training at our office attitudes and behaviors in the workplace or yours, and in many locations around forced to take a hard look at training have been found to make major dollars and are now investing resources the state, WSC is dedicated to keeping improvements (reductions) in the losses Wisconsin workers safe. Contact us into their safety training programs. due to accidents and illness. In fact, nearly 60 percent rated their today; we look forward to helping you companies more safety-focused today Not only do employers focus on safety with your safety training needs. BV than they were five years ago, with 10 in the workplace, there is an ever Follow WSC on Twitter @WISafetyCouncil growing awareness that safety is a 24/7

21st Annual Autumn Safety & Health Conference & Exposition September 20, 2012 Holiday Inn, Manitowoc In Partnership with The Chamber of Manitowoc County Safety Council www.wisafetycouncil.com

26 WMC Joins UW-Madison in China MC’s Kurt Bauer recently returned from China where he Bauer also toured Brady’s ShenZhen facility, which manufactures participated in UW-Madison’s Innovation Conference high tech components for smart phones and other electronics. inW Shanghai held in conjunction with the opening of the The Wisconsin delegation included a mix of UW-Madison and University’s new Innovation Office. state government officials. Wisconsin Department of Agriculture, During the 13-day visit, Bauer met with government officials and Trade and Consumer Protection (DATCP) Secretary Ben Brancel representatives of Wisconsin companies with Chinese operations, and Wisconsin Economic Development Corporation (WEDC) including Caterpillar, Emerson (Insinkerator), GE, Johnson Secretary/CEO Paul Jadin took part, as did WMC Board Controls, Joy Global, Modine, Oshkosh Corporation, Rockwell Member Mark Bugher, who is Director of University Research Automation, 3-M, Paper Machinery Corporation and Promega. Park in Madison. BV

Brady’s Thong Phan (center) led Kurt Bauer From left to right are Bauer, DATCP Secretary Bauer (right) met with the CEO of the (left) and Mark Bugher (right) on a tour of Ben Brancel, WEDC Secretary Paul Jadin American Chamber of Commerce in China, the company’s ShenZhen facility located just and Mark Bugher at a Wisconsin Alumni Christian Murck, while in Beijing. north of Hong Kong in mainland China. Association event in Shanghai.

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

MILWAUKEE MADISON WISCONSIN DELLS FOX VALLEY/ MID-STATE AREA AREA AREA GREEN BAY AREA AREA

July 18 August 7 October 15-18 August 8 September 20 Safety Inspections Coaching the Emergency Vehicle Safety Management Techniques Coaching the Lift Truck (Manitowoc) Operator Fire or Ambulance (SMT), part of the Advanced Operator, Train-the-Trainer August 8-9 21st Annual Autumn Safety & Safety Certificate Series Health Conference/Exposition OSHA 10-hr Voluntary August 13-16 August 20-23 Compliance Course for General Principles of Occupational Safety October 24 Worker’s Compensation Case October 10 Industry & Health (POSH) HazCom, Train-the-Trainer Management & Workplace (Eau Claire) Anatomy September 12 August 21-23 November 5-8 Coaching the Lift Truck Job Safety Analysis (JSA) Instructor Development Course: Worker’s Compensation Case August 21 Operator, Train-the-Trainer First Aid/Adult CPR/AED Management & Workplace Effective Team Safety November 7 September 13 Anatomy Safety Communication & September 11 October 30-November 2 (Stevens Point) Training Techniques Incident Investigation December 6 OSHA 30-hour Voluntary Incident Investigation Team Safety Compliance Course for General November 14 September 19 September 18-21 Industry Ergonomics: Managing for OSHA 30-hour Voluntary December 11 (Marshfield) Results Compliance Course for General Safety Communication & Supervisor Development: Safety Industry Training Techniques & Health Fundamentals October 17 Confined Space, Train-the- October 2 December 12 December 4-5 Trainer RCRA Compliance for Worker’s Compensation Law (Stevens Point) Hazardous Waste Generators Symposium OSHA 10-hour Voluntary November 8 Overview Creating a World-Class Safety December 13 Compliance Course for General Culture October 2 Lockout/Tagout, Train-the- Industry DOT Hazmat Transportation Trainer December 12 Refresher Overview (Marshfield) October 9 Safety Inspections Coaching the Lift Truck Operator, Train-the-Trainer

For a complete schedule and registration information, visit www.wisafetycouncil.org

Wisconsin Business Voice 27 FUTUREGiving High School Students a “Second Chance” sk any manufacturing company in Wisconsin about its blueprints or simply being productive and responsible citizens, need for skilled labor and you’ll likely be told there isn’t these students are skilled at what they do. enoughA of it. Zachary Kwitech, one of this year’s graduates, says Second This persistent search for capable, “can-do” employees never lets Chance has been a tremendous stepping stone in his life. “Two up, and one organization based in the greater Milwaukee area years ago I didn’t even think graduating would be possible with is taking significant steps to help; not only is it developing a my small number of credits and new generation of trained workers, it’s giving a second chance poor work ethic. Now I’m ready for to high school students at serious risk of dropping out. the real world,” he says, adding that Second Chance Partners for Education (Second Chance) is a he wants to pursue a career in the one-of-a-kind, alternative high school program that immerses automotive industry. young people in real-life business and manufacturing settings, Michael Tuff, another graduate, inspiring them to learn through an innovative and engaging says that his decision to join approach to education. Second Chance’s program was Earlier this spring, Second Chance graduated 40 students, the best decision he’s ever made. its largest graduating class to date. This fall, the program is “My whole mindset has changed, expecting enrollment of 120 to 130 students. and I have become so much more responsible. I don’t hate having For these young people, high school did not come easy. Early to get up early and go to work on, they struggled with feeling academically disengaged and every day now, and I actually even many were considered academically at-risk. But thanks to enjoy it,” he explains. He plans Second Chance Partners, they stayed the course. to study mechanical engineering Students in the Second while continuing his work in the Chance program attend manufacturing field. class at one of the program’s At Second Chance’s recent graduation ceremony, Executive eight education centers Director Stephanie Borowski was moved by everyone that has located in manufacturing rallied around the students. “Surrounding this amazing group facilities throughout of graduates are not only devoted friends and family but also a Wisconsin. During the tremendous support network of 65 businesses that open their 21-month Second Chance doors to our students and give them a life-changing education,” program, students typically she says. “These manufacturing companies represent the very spend two hours per day best in Wisconsin, from plastics and packaging to tool and learning in the classroom die and power systems. They all have a vested interest in our and about six hours students, because our students’ bright future is the same as applying their knowledge Wisconsin’s bright future.” to manufacturing-related jobs they hold. From plastics Second Chance operates education centers in Waukesha, New to diesel mechanics, these Berlin, Burlington, Menomonee Falls, Germantown and Green students receive an intense, Bay. This fall, Second Chance will open four new education hands-on experience in the workforce where they are able to centers, in West Allis, Oak Creek, West Bend and Appleton. train with the experts. More information about Second Chance Partners for Second Chance graduates earn a diploma from their home Education can be obtained high school, a youth apprenticeship certificate through the by visiting the website www. Wisconsin Department of Workforce Development, and can seondchancepartners.org or boast nearly two years of work experience. About 60 percent of calling the Second Chance the graduates enter the workforce immediately. Thirty percent office, (262) 695-7981. BV continue their education at a technical college or four-year university, and the remaining 10 percent enter the military or enroll in an adult apprenticeship program. Regardless of the specific path they choose, students show tremendous initiative and the desire to learn. And whether it’s welding or reading

28 WMC at Home and on the Road

1 2 3

4 5 6

7 8 9

1. WMC was onsite June 5 in Waukesha to witness first-hand the 5. Janie Ritter, second from left, Wisconsin Safety Council only Governor to survive a recall election. Congratulations to Director, congratulated Dale Gumz, Owner of Inductive Governor Walker. Engineering in Cadott. Dale is the lucky winner of the John Deere X300 Lawnmower donated by John Deere Horicon Works 2. WMC and its affiliate, the Wisconsin Safety Council, proudly for the 70th Annual Wisconsin Safety Council Conference. celebrated June as National Safety Month. 6. Rep. Robin Vos (R-Burlington) spoke to WMC's Government 3. Rebecca Hogan, WMC’s Director of Health and Human Relations Council which comprises representatives from the Resources Policy, stands with Governor Walker and Senator Van business community, associations, and local chambers of Wanggaard (R-Racine) following the Technical Education bill commerce. signing, the bill authorizing a school board to grant a technical diploma to help address manufacturers’ need to engage a skilled 7. The Wisconsin Chamber of Commerce Executives (WCCE) is an workforce. integral part of WMC, and their board held a planning meeting at WMC in April. 4. U.S. Senator Ron Johnson (R-Oshkosh), center, spoke to the WMC Board of Directors in May. He stands here with Raj Sheth, 8. U.S. Representative Ron Kind (D-La Crosse) met with Kurt R. Chairman/CEO of Mead & Hunt, Inc., Todd Teske, Chairman/ Bauer, WMC President/CEO and James Buchen, WMC Senior President/CEO of Briggs & Stratton Corporation, Robert Keller, Vice President of Government Relations. Chairman & CEO of J.J. Keller & Associates, Inc., and John Casper, President/CEO of Oshkosh Chamber of Commerce. 9. Scott Manley, WMC's Director of Environmental & Energy Policy, watches as Governor Walker signs a workforce development bill.

Wisconsin Business Voice 29 Ask Wisconsin’s Legislators n an ongoing effort to reach out to our state’s lawmakers, Wisconsin Business Voice asked Senator Mark Miller and IRepresentative Robin Vos questions on issues that affect Wisconsin businesses. Senator Mark Miller (D–Monona) Representative Robin Vos is the Senate Minority Leader (R–Burlington) represents representing Wisconsin’s 16th Wisconsin’s 63rd Assembly District. Senate District.

Business Voice: In your view, what code. We need to make it flatter, fairer Representative Vos: are the three main impediments to and not riddled with special interest tax Too many kids in the Milwaukee Public growth of the Wisconsin economy, and breaks that we all have to pay. Schools fail to graduate. We know what do you think the State Assembly/ We have often said there is no one that without a high school diploma, Senate can do to rectify those magic bullet that will jump start our the path to success is often a dead problems? economy and we often have to remind end. We need to keep these kids in Senator Miller: people that government is not in the school and get them trained for the I believe job creation in this state starts business of creating jobs. However, workforce. Education reform is essential with a quality education system and we have helped improve our business to help spur economic growth. This sufficient resources invested in our climate and most agree our economy is past legislative session, we took some quality post-secondary systems: the headed in the right direction. initial steps toward education reform by passing initiatives that focused Technical Colleges and the UW System. Business Voice: Milwaukee on reading and teacher effectiveness. We create problems when Wisconsinites appears to be in total disarray with We also expanded school choice in get priced out of training opportunities a poorly performing school system, Milwaukee. and higher education. We need to train unemployment rates much higher more folks immediately in the skills than the rest of the state, and an In addition, there needs to be more employers say they need to fill current infrastructure that is failing. What do public-private partnerships. One great job vacancies. We also could do more you think is an appropriate role for the example is the $100 million initiative to help small businesses with capital, legislature to play to help solve these called “Transform Milwaukee.” The instead of small tax credits that many of critical problems that are affecting the project’s goal is to restore economic them do not benefit from. entire state? vitality to depressed areas of Milwaukee. Business Voice: It is difficult to argue against enhancing Senator Miller: Some would argue job training opportunities and ensuring When Wisconsin’s economy is the old saying “good policy trumps taxpayer-funded subsidies are tied to real struggling, Milwaukee’s economy is good politics” is no longer true and jobs. usually hit especially hard. We cannot politics now overshadows good policy. Do you agree? Is that a good thing for The State Senate and the Assembly can drastically cut Milwaukee schools policymaking in Wisconsin? work on and pass legislation now to and expect them to improve. We Senator Miller: create jobs now and in the future. cannot restore Milwaukee’s proud manufacturing tradition if we cut aid to Good policy is always being worked Representative Vos: technical colleges. A better-educated, on by legislators and organizations, it The answer is simple: overregulation, more-skilled workforce is critical to is just not always reported on. Many over-taxation and the need for more Milwaukee’s future. The legislature has times the controversial issues make the partnerships in workforce training. We and can work with Milwaukee to ensure headlines, while policy discussions on have made progress in these areas but the residents of Milwaukee continue issues are ignored. How do we eliminate more needs to be done. This summer to find new opportunities to improve waitlists at technical colleges so more I’m the chair of a Legislative Council the lives of their residents and their workers can be trained and how do committee that will study income tax workforce. We should all be interested we get more people to buy Wisconsin reform in Wisconsin. Our current in improving Milwaukee’s economy, products? These questions truly deserve system has been in place for 100 years. I because as our state’s largest city it does the headlines. I believe Republicans think it’s time to take a good look at the affect the rest of the state. and Democrats would agree these are

30 valuable policy issues they can work on together.

Representative Vos: I believe good policy still trumps good politics. We have shown that by making tough decisions and tackling tough problems, we’re more concerned about the future of Wisconsin than the Helping Wisconsin next election. However, the June recall elections proved that even with all the Manufacturers Compete politics surrounding this past legislative session, Wisconsin citizens understood for Over 50 Years the positive impact of Act 10 on the state and local budgets. More than Wisconsin Owned and Operated $1 billion tax dollars have been saved. Voters saw through the misleading Engman-Taylor is an industrial distributor, servicing manufacturers, with a political rhetoric from opponents and focus on integrated supply and lowering the overall cost to produce quality resoundingly gave Governor Walker a components. Our philosophy is simple; we strive to help you produce the full-term in office. highest quality components at the lowest cost. Business Voice: Many suggest the discourse in the Capitol is no longer Cost Circles® productive. In your leadership role, Our award-winning Integrated how do you facilitate a healthy debate Supply Model addresses three MANUFACTURING ADMINISTRATIVE on the critical issues facing Wisconsin? separate but related areas to COSTS COSTS Some Senator Miller: determine your level of Impact financial success: Small Impact Small Impact Most people who work with me know MAXIMUM IMPACT that my door is always open. Real honest • Administrative Costs Some Some discussions are important in everyday • Manufacturing Costs Impact Impact life and they are important in politics. I • Price believe we can move forward and discuss issues and differences at the table, as long Reducing cost in one area is good, PRICE as everyone is invited to the table. reducing in two areas is better, but Small Impact attacking all three areas Representative Vos: simultaneously is best. It’s often said that past practice is the best predictor of the future. My time www.engman-taylor.com on the Joint Committee on Finance has been a valuable and rewarding W142 N9351 Fountain Blvd. 3311 E. Capitol Dr. 7980 Burden Rd. Menomonee Falls, WI 53051 Appleton, WI 54911 Machesney Park, IL 61115 experience. During the past six years, I 800-236-1975 800-236-3820 800-236-3820 made some great friendships, many of 2500 N. Main St. Suite #1 8301 Arrowridge Blvd. Unit F which are with lawmakers who don’t East Peoria, IL 61611 Charlotte, NC 28273 have the same beliefs as I do. I believe 800-232-0295 800-532-6051 there is a way to argue passionately about the issues and respect each other’s opinion. Each month, Minority Leader Representative Peter Barca and I have a civil dialogue on a program for WisEYE television. I am hopeful that more legislators reach across the aisle to discuss possible solutions for our state. The best solutions are often found when we listen to each other. BV

Wisconsin Business Voice 31 Is the Free Enterprise System Under Attack? By John Beckord, President, Forward Janesville, Inc.

common refrain on the campaign skin in the game for the sake of the enormously important questions. trail is the free enterprise system company’s survival. Foremost is the growing tension between isA under attack. What exactly does that The Boeing case in South Carolina is those who believe in a merit-based mean? If some Americans have the goal a compelling example of the federal economy versus those who embrace to take down the free enterprise system, government drifting into new territory some form of distributive justice. This is how and why would they go about it? that some view as a challenge to free about the extent to which governments Could it be the forces that threaten enterprise. When Boeing announced have the right to appropriate your our economy are not connected to any it would build a new factory in South earned income, investment income, and organized effort? Carolina and the workers there would accumulated wealth to provide resources By definition the free enterprise system not be organized, the National Labor for far more than security, a functioning is an economic system characterized Relations Board ruled Boeing chose legal system, our nation’s infrastructure, by private ownership of property and South Carolina in an effort to exact and education systems. This is a tussle productive resources, the profit motive retribution on its organized workforce between those who want Americans to stimulate production, competition to in other states. Free enterprise advocates to take more responsibility for their ensure efficiency, and the forces of supply rightfully asked why an American own needs and those who want the full and demand to direct the production company needs permission from menu of retirement security, education and distribution of goods and services. It the federal government assistance, subsidized health care, follows, logically, that real threats to the about where it builds housing, food, and green energy. system aim to undermine one or more of a manufacturing There will Americans have argued about these principles. facility and be days when the fairness and entitlements One often-mentioned attacker is what whether or not supercharged political for decades. The difference I might label “overly aggressive workers’ workers are now is our mushrooming rights advocates.” The premise of this unionized. rhetoric and the snarky national debt, addiction to argument is that militant workers’ Again, make business bashing in the underfunded entitlements, rights groups do not accept the notion your own and the potentially that the value related to intellectual judgment. national news will give disastrous implications of property, capital equipment, customer Reasonable people you pause. a system collapse that will relationships, etc. compares to the value can disagree without dramatically impact our way of contributed by those who work to build a being disagreeable. life if we don’t find a way forward. product or deliver a service. This idea, of A second source of an alleged attack on I believe we can find that way course, is rooted in classic Marxist theory free enterprise is said to be emerging forward. There will be days when the and a clear challenge to the principle of from a particular religious pedagogy and supercharged political rhetoric and the private ownership of property. And since from human rights advocates. Often the snarky business bashing in the national workers vote, there will be politicians idea is packaged under the banner of news will give you pause. My advice is who will abide this idea. social justice. In other circles it is more let those days motivate you to double But, is this really a serious threat to bluntly labeled along the lines of profits down on your commitment to make our economic system? Certainly there are immoral. My reading of this thread your business a success. When you are examples of aggressive union can be summed up by the notion that leverage your private property rights, demands beyond bargaining for wages, these ideas are founded on the fixed pie invest in your business, compete in the benefits and work rules. When the world view, i.e. there are only so many free market, and earn a profit, you are U.S. Government took a hefty stake in resources and dividing them up “fairly” showing others how free enterprise GM, the International Union, United involves a moral judgment. works. When you create jobs, pay taxes, Automobile, Aerospace and Agricultural There are real threats facing our make charitable contributions, and offer Implement Workers of America (UAW) economic system, but they are not your time and talent to worthy causes, was granted a partial equity stake in the directly related to a movement dedicated you are part of the solution; part of the company. Many conservative pundits to dismantling private property way forward. BV pointed to the auto bailout/restructuring rights, eliminating the profit motive, John Beckord is the as an example of the federal government eliminating competition, or totally President of Forward overstepping by insisting the UAW be subjugating the forces of supply and Janesville, Inc. He can allocated an equity stake in the company. demand. be reached at (608) 757-3160 But this case is an outlier and one could The real battles are about other argue it required the UAW to have

32 Client service should be EXCEPTIONAL, not the exception.

Every bank wants to provide real client service. But most aren’t set up to make it happen. First Business is different. We intentionally limit ourselves to fewer clients than comparable banks of our size so that we can offer each client an exceptional level of service. We know your name. More importantly, we get to know your business. That’s what makes the difference. Call us today.

(L-R) Corey Chambas, President & CEO First Business Financial Services, Inc. Joan Burke, President First Business Trust & Investments

YOUR SUCCESS COMES FIRST. Member FDIC

www.firstbusiness.com Treasury Management : Trust & Investments : Private Banking : Asset-based Lending : Equipment Finance : Commercial Lending 608-238-8008 Sales and Use Tax for Wisconsin Manufacturers Web Forum In-depth | Manufacturing Specific | Real-life Examples | Real-time Q&A

Fiercely focused >

need to know what sales and use tax laws are applicable to my manufacturing company.

As a manufacturer, every transaction you make could have potential sales and use tax implications. With over 120 years of combined experience including experience working for the Wisconsin Department of Revenue, Wipfli’s sales and use tax experts can help. Join us for Wipfli’s Sales and Use Tax for Wisconsin Manufacturers Web Forum — a four-part web series providing concise, industry-specific sales and www.wipfli.com/ use tax information and education. Each webinar is 1.5 hours. salestaxforum

Defining the Manufacturing Process Defining Equipment Exemptions August 14, 2012 September 11, 2012

Consumables: What Qualifies for Exemption? Utilities and Use of Estimates October 9, 2012 November 13, 2012

Visit www.wipfli.com/salestaxforum for complete details and to register. www.wipfli.com