Official magazine of Wisconsin Manufacturers & Commerce July 2014: Issue 11

The Future of Wisconsin Creating a 20-year plan for the Badger State Page 8

Inside: 

Lead Article: The State of Business Development p. 20 Guest Column from Mary Burke p. 28 Corporate Safety Award Winners p. 24 Making Wisconsin Irresistible to Business p. 2

WISCONSIN … Business Voice In this issue 2 MakingKurt Bauer, Wisconsin WMC Irresistible to Business

4 Moving Forward on Worker’s Compensation Reform From the Chris Reader, WMC 6 Defeating Bad Bills: Just as Important as Passing Editor Good Ones Scott Manley, WMC What if we could make Wisconsin irresistible for The Future Wisconsin Project business? 8 Jim Morgan, WMC Foundation We seem to be doing pretty well at this point. Amazon is moving 10 Recent State Campaign Finance Developments Impact Business here, Uline announced last Mike Wittenwyler, Godfrey & Kahn SC month they are expanding, and we are confident there is more 12 TheseEric Bott, Aren’t WMC Your Grandpa’s Environmentalists good news to come. It's been reported that Wisconsin has seen 17 Fraud and Risk: A Global Issue a net increase of 17,000 new Penny Foust, Bank Mutual businesses since January 2011. We are hopeful the Badger 18 Business World: A Crash Course in State’s environment will continue SEntrepreneurship!teve Benzschaw el, WMC/Wisconsin Business to attract new – and encourage World existing – businesses to expand and thrive. The lead story in this edition of Wisconsin Business Voice 20-23 focuses on business development in Wisconsin (see page 20), which pairs nicely with WMC’s commencement of The Future LEAD STORY: BUSINESS Wisconsin Project, a 20-year strategic plan for the state (see DEVELOPMENT IN WISCONSIN: pages 8 and 9.) The numbers you’ll see in a few columns this are WE ON THE RIGHT TRACK? edition are staggering – it’s predicted we’ll have only 0.4 percent working-age population growth by 2030. That's a problem 24 WisconsinJanie Ritter, Corporate WMC/Wis Safetyconsin Awards Safety Council because it's also predicted we will have an additional 317,310 jobs in only 10 years and not enough people to fill them. The Cranes Crossing Oceans Future Wisconsin Project aims to tackle these issues and more. 26 Mike Shoys, WMC Stay tuned for further developments! 27 WhyMajor You General Should D Hireunbar, a National Wisconsin Guard National Member Guard

28 InvestingMary Bur forke Success Katy Ryder Pettersen Editor, Wisconsin Business Voice 29 GrowingJason Culotta, Freight WMC Demand Requires Rail Solution [email protected]

31 YourSecy. DNR Cathy Working Stepp, Wis for cYouonsin Dept. of Natural Resources

32 WMCJim Pugh, Issue WMC Advocacy: Issues MoTheb ilizationTime to GiveCoun is cil,Now! I nc.

34 TheLinda DominoHansen, Effect Prosp –erity Reverse 101, it! LLC

Wisconsin Business Voice is published quarterly by Wisconsin Manufacturers & 38 ThoughtsRepresentatives from Retiring Clark (LegislatorsD-Baraboo) and Commerce. WMC is Wisconsin’s chamber of commerce, manufacturers’ association, Severson (R-Star Prairie) and safety council representing businesses of all sizes and from every sector of the economy. Send address changes to WMC, P.O. Box 352, Madison, WI 53701-0352. WMC's physical address is 501 E. Washington Avenue, Madison, WI 53703, 40 Chamber Corner: Opportunities with African (608) 258-3400. This publication is proudly printed on paper made in Wisconsin. DAmericanr. Eve Hall, Businesses African American Chamber of Kurt R. Bauer, WMC President/CEO Katy Pettersen, Editor ([email protected]) Commerce Jane Sutter, Designer ([email protected]) Making Wisconsin Irresistible to Business Kurt R. Bauer, WMC President/CEO

isconsin’s working-age federal immigration reform? population will grow by The simple answer is by making the state’s business climate justW 0.4 percent by 2030, according irresistible, which the Merriam-Webster Dictionary defines to the UW-Madison Applied as “impossible to resist especially because of strength or Population Lab. During the same attractiveness.” period, Wisconsin’s 65 and over population will grow 94.7 percent. Business leaders from all sectors need to see that locating or expanding in Wisconsin gives them a competitive advantage Those two numbers beg the other states can’t match. If we accomplish that, people – i.e., question; how can Wisconsin attract workers/taxpayers – will see that Wisconsin is the place to be. the workers/taxpayers the state’s economy will need in the future? On that score, Wisconsin is already headed in the right It’s a tough question to answer because there is no one magic direction. Site Selection Magazine recently ranked us the 13th solution as Japan and many European nations facing the best state for business. Chief Executive Magazine improved same population challenges can attest. Wisconsin to 14th best in the nation, up from 41st in 2010. Japan is attempting to change the cultural tradition that Both of those rankings matter because they don’t use the pressures women not to work after marriage. Germany is arbitrary metrics often favored by economists and academics. encouraging workers to delay their retirement. The Danes They are surveys of the people who actually decide where to have a cheeky campaign to encourage higher birthrates called locate or expand a business based on factors like tax rates, “Do It for Denmark.” Many European nations, including regulatory culture, the legal environment and, of course, Germany and Italy, have embraced liberal workforce. immigration policies in order to “Business leaders from all The WMC Board discussed what attract workers. reforms would make Wisconsin The latter two solutions have the sectors need to see that locating or irresistible during its recent strategic same common denominator. expanding in Wisconsin gives them planning meeting. Among other things, Board members identified the Couples generally decide to start a competitive advantage that other need to lower the state’s traditionally or expand a family when they have states can’t match…” high income and property taxes, the financial wherewithal to do so. That maintaining transportation infrastructure at means having a good paying and stable job. a time when gas tax proceeds are declining, ensuring K-12 Similarly, people move to places where there is economic students are better career- and college-ready (both four year opportunity. That is why so many Americans (including and technical), enhancing the national reputation of our Wisconsinites) have moved to North Dakota in order to take metropolitan areas, encouraging entrepreneurship, creating advantage of the energy boom and the high paying jobs it has a cooperative and predictable state regulatory culture and created. protecting the affordability of the state’s energy supply. Unfortunately, Wisconsin doesn’t have shale deposits so we Wisconsin isn’t alone in facing unfavorable population trends, have to find other ways to attract workers. We’ve done it which means the race is on to see who can find solutions that before. Wisconsin’s original European settlers came from work. Making Wisconsin irresistible to business should be Norway and Germany beginning in the 1840s looking one of those solutions. WMC is committed to finding others for the upward mobility that was denied them in the “old via our ambitious new initiative, The Future Wisconsin country.” In the early 1900s, Wisconsin attracted thousands Project, designed to create a statewide 20-year strategic of African Americans to move from the Deep South to economic plan (see page 8). BV Beloit, Milwaukee and Racine to work in factories. But how do we encourage our youth, especially the best educated and most skilled, to stay in Wisconsin in 2014 and beyond? How do we encourage people to raise their families here? And how do we encourage people to move here from other states and countries, notwithstanding the need for Follow Kurt on Twitter @Kurt_R_Bauer

2 IT’S ABOUTAnchor Bank ad lISTenIng Because you have ideas, plans and goals for your Business.

You never stop thinking about your business. Neither do we. Our Commercial bankers are always at-the-ready with Commercial Real Estate and Commercial Banking expertise and support tools to keep your business on track. Plus, our Commercial bankers are based where your business is—right here in Wisconsin—and have been for more than 95 years. Success begins with a conversation. How can we help your business? let’s talk. call 608-252-8755.

EQUAL HOUSING 2014 AnchorBank, fsb. AnchorBank is a service mark of Anchor BanCorp Wisconsin Inc. leNDeR

Commercial-8.5x11.indd 2 4/11/14 4:59 PM WORKER'S COMPENSATION

Chris Reader WMC Director of Health & Human Resources Policy

Moving Forward on Worker’s Compensation Reform he Wisconsin Manufacturers’ process, but instead of being an easy, quiet as hospitals, play in our local communities Association was founded on January bill for lawmakers to pass, the bill this year getting injured workers back to work, 18,T 1911 by a group of business leaders became one of the most lobbied bills of keeping our families healthy and improving in Milwaukee, led by F. J. Sensenbrenner, the session. Organizations of all stripes the overall character of our state. We also to ensure that the voice of employers was lined up for and against it – a total of 57 continue to hear from other employers, heard by state lawmakers. The association groups registered lobbying activities with however, that the high cost currently later merged with the State Chamber of the Government Accountability Board. associated with worker’s compensation puts Commerce and the Wisconsin Council Because of that pressure, the bill ended up our state at a competitive disadvantage for of Safety and moved to Madison. This not moving forward – the first time since job creation. We believe there is a place entity is now what you know as Wisconsin World War II that a law wasn’t passed where the entire business community, Manufacturers & Commerce (WMC). during the legislative session to update the including hospitals, can agree on a path One of the key policies that prompted worker’s compensation laws. forward on this contentious issue. To that Sensenbrenner and his colleagues to form While it was historic, that level of lobbying end, we have convened a working group the Association in 1911 was the creation was not surprising. Unlike most other of diverse WMC member companies of the Wisconsin Worker’s Compensation years, the agreed-bill this session included with a stake in the worker’s compensation system, which also started in 1911. This significant reforms, including the most system, including manufacturers, insurance government program was essentially a controversial item, a fee schedule to companies, hospitals and doctors, and no-fault system where injured workers control the growing cost of medical bills trucking and construction firms, to work on received set compensation for losses for worker’s compensation claims. Cost this issue this summer and help us find that incurred from injuries sustained while containment has been on the to-do list united path forward. BV working, and employers were held harmless of management members of the WCAC Follow Chris on Twitter @ReaderWMC in tort actions for unintentional workplace for years, but this session was the first injuries. That basic premise remains today. time organized labor agreed reform was WMC has been involved in the system necessary to control costs, giving the issue since 1911, representing the interests of its first real shot at becoming law. Save the Date employers before state government. Once management and labor Historically, a package of reforms is representatives on the WCAC agreed to negotiated every two years between include a fee schedule, strong opposition management and labor through a process quickly arose from medical providers. usiness ay that has been statutorily defined since 1968 Typically allies with WMC and the general B D as the Worker’s Compensation Advisory business community on legislative matters, Council (WCAC), and those reforms are the fee schedule issue drove a wedge in Madison forwarded to lawmakers. Because those between the medical providers and the rest reforms are agreed to by both management of the business community that doomed arch and labor representatives, they tend to not the worker’s compensation reform bill this M 4, 2015 be very controversial with lawmakers and session from the start. Monona Terrace easily become law. As we work at WMC to achieve our Earlier this year, however, something mission of making Wisconsin the best state Community & different happened. Per usual, a unanimous in the nation to do business, we recognize Convention Center 10-0 proposal came out of the WCAC the important role medical providers, such

4 COME TOGETHER.

MIKE HAUPERS President Swiss Precision Machining Inc. YEARS ATTENDING IMTS 25 GOAL FOR IMTS 2014 To identify new equipment, tools, and technologies that will enhance our abilities– giving us the competitive edge needed to expand into new markets. After 40 years in the machining industry, I’m still amazed at how much more there is to learn. IMTS is where I go to get smarter. LEAVE SMARTER.

Where else can you meet the minds that are moving manufacturing forward? Nowhere but IMTS 2014. With a focus on success through cooperation, the week will be fi lled with technology, education, and ideas that we can all benefi t from. Join us at McCormick Place Chicago, September 8–13, 2014. Learn more at IMTS.com. COME TOGETHER. REGISTER NOW • IMTS.COM LEAVE YOUR MARK.

WISCONSIN BUSINESS VOICE | 8.5”w x 11”h | build 2 | full bleed | CMYK LEGISLATIVE UPDATE

Scott Manley WMC Vice President of Government Relations

Defeating Bad Bills Just as Important as Passing Good Ones

resident Franklin Delano Roosevelt once said “In politics, • Assembly Bill 894 – Rep. Sondy Pope (D-Cross Plains) nothing happens by accident. If it happens, you can bet it was Would create a new per-employee tax collected from employers Pplanned that way.” to fund a paid family medical leave program. That’s especially true with respect to the pro-growth reforms • Assembly Bill 342 – Rep. Chris Taylor (D-Madison) enacted at the Capitol since January, 2011. Those reforms didn’t Would prohibit an employer from inquiring about a job happen by accident – they happened because we had a pro-job applicant’s conviction record prior to a job interview. Also majority in both houses of the Legislature and a Governor with the defines asking about conviction records as employment courage to tackle tough issues. discrimination. Thinking about the magnitude of those reforms, it’s nothing short • Senate Bill 660 – Sen. Mark Miller (D-Monona) of remarkable: collective bargaining reform, historic tort and Establishes expensive new global warming regulations expected legal reforms, sweeping unemployment insurance reforms, broad to cost businesses and homeowners billions of dollars, including regulatory reforms and significant tax reforms, among many others. a 30 percent renewable energy mandate. Public policy is headed in the right direction in Wisconsin. With • Assembly Bill 755 – Rep. Mandela Barnes (D-Milwaukee) 95 percent of WMC’s member companies saying Wisconsin is Creates a new class of employment discrimination based upon a on the right track, it’s easy to get complacent and develop the job applicant’s status of being employed or unemployed. expectation that good policy will continue indefinitely. • Assembly Bill 868 – Rep. Brett Hulsey (D-Madison) Yet it was only three legislative sessions ago that Wisconsin Would establish an extraction tax of $1 per ton for industrial businesses were the target of massive tax hikes, expanding legal sand, saddling this growing industry with millions of dollars in liability and expensive new regulatory burdens. It’s easy to forget new taxes to stifle growth. how badly policy can go off the tracks when the wrong people are making the decisions in government. • Assembly Bill 887 – Rep. LaTonya Johnson (D-Milwaukee) Would force employers to pay for half the cost of their There are many ways to define victory, and sometimes preventing employees’ food stamp benefits and BadgerCare Plus healthcare bad things from happening is every bit as important as helping benefits. to make good things happen. The 2013-14 legislative session is a compelling case study. Looking at this list of bad bills, one can easily see how much damage the Legislature could inflict upon the business community There were some truly awful bills introduced last session that and our economy as a whole if the wrong people are making bad WMC was able to defeat with the help of pro-growth lawmakers. decisions. Following is a list of some of the most egregious anti-business proposals we were able to defeat because the right people were Nothing in politics happens by accident. WMC’s advocacy at the making the right decisions at the Capitol. Capitol is constantly working to ensure the Legislature keeps its focus on pro-growth policies, while rejecting the anti-business Proposals Defeated: proposals that would harm your business. • Assembly Bill 898 – Rep. Cory Mason (D-Racine) It’s all about making sure the right people at the Capitol are Would require employers to pay mandatory paid sick leave to making the right decisions. To see the decisions your own their employees at their regular rate of pay, and mandate that lawmaker made on legislation impacting businesses during the employees may accrue up to 72 hours of sick leave each year. 2013-14 legislative session, visit www.wmc.org and review WMC’s • Assembly Bill 872 – Rep. Chris Taylor (D-Madison) legislative scorecard. BV A package of tax increases on businesses and individuals that Follow Scott on Twitter @ManleyWMC raise the tax burden by an estimated $200 - $300 million per year.

6 Congratulations Think 3D printing is just for to the Working prototyping? Think again.

for Wisconsin Direct metal 3D printing is affordable NOW! Award Recipients Produce completed complex WMC is traveling around metal parts the state this summer directly from CAD files. to honor legislators who supported Wisconsin You can produce end-user parts and components in business with a 80% or aluminum, stainless steel, tool steels, non‑ferrous alloys, ceramics, titanium and copper. better voting record.

Visit www.wmc.org to • Best metallurgical see the voting records. properties • Exceptional surface finishes • Spectacular accuracy and repeatability HOW • Best equipment pricing THEY in the USA

VOTED Visit Central3DSystems.com for your free 3D Printer Buyer’s Guide. “You can’t be pro-jobs and anti-business at the same time. You can’t love employment and hate employers.” – Senator Paul Tsongas, 1992 Democratic National Convention Free initial consultation to help you discover the possibilities of WISCONSIN LEGISLATIVE VOTING RECORD: 2013-14 SESSION true additive manufacturing in metal—call 866‑203‑7457.

Central 3D Systems Scorecard will be W223 N777 Saratoga Drive included in October Waukesha, WI 53186 edition of Wisconsin 866-203-7457 Central3DSystems.com Business Voice.

© 2014 Central 3D Systems

Wisconsin Individual Safety Award Winners

Safety Hall of Fame Inductee Lifetime Achievement Award Winners Don Zietlow Warren Brockmeyer Robert Anderson, Sr. CEO and Owner of Retired from Wisconsin Retired from InSinkErator Kwik Trip, Inc. Department of Workforce Development FUTURE WISCONSIN

Jim Morgan WMC Foundation President

The Future Wisconsin Project hose who cannot remember the past are condemned to Do you see the problem yet? repeat it.” How about the loss of Wisconsin college graduates? 14,000 “TThat is a famous quote from George Santayana’s The Life of Reason. every year. Wise words for Wisconsin when you consider the following: How about the economic uncertainty caused by political swings What if 20 years ago, when we knew there was a severe labor in the past 10 years? shortage coming (and we did know) we had put a plan in place How about the skills gap we have seen throughout Wisconsin to address it? as students pursue degrees that do not lead to careers, while jobs What if 20 years ago, we had branded the state… not as go wanting skilled applicants? cheeseheads from the frozen tundra… but as entrepreneurs How about some good news? We can overcome all of these from the state of innovation… as an attractive place for the next challenges. ENTER: The Future Wisconsin Project. generation? For more than 100 years, Wisconsin Manufacturers & Commerce What if 20 years ago, everyone… Republicans and Democrats has been the state’s leading business association. The organization’s alike… had agreed upon a set of measures and goals that would commitment to making Wisconsin the most competitive state in ensure Wisconsin’s economic competitiveness? the nation has been a constant. In 1982, the WMC Foundation What if 20 years ago, we had established an academic and was founded to complement the work of the association by looking career plan, and work experiences… for every student… to beyond policy cycles and taking a longer term look at the state’s guide them and their parents in selecting a meaningful career economic health through programming and research. The Future track? Wisconsin Project is the culmination of that vision. What if today, we decided not to let history repeat itself? To ensure prosperity for the communities of Wisconsin, and rewarding and high-paying careers for our citizens, the Badger A Georgetown University study suggests Wisconsin will create State must be positioned as a leader in the following areas: 317,000 jobs this decade. The Applied Population Lab at UW- Madison says we will add 15,000 working age people in that same • Talent Development, Attraction and Retention timeframe. • Business Competitiveness Georgetown University Study • Global Engagement • Government Effectiveness 2010 Total WI Jobs: 2,812,590 • Life Quality 2020 Total WI Jobs: 3,129,720 • Entrepreneurial Spirit These six areas are known as the Competitive Quality Indicators Applied Population Lab (CQIs) – areas of focus that are critical if Wisconsin is to be a competitive place to do business 20 years from now, and beyond. Additional Jobs = 317,130 (10 years) With the cooperation of the University of Wisconsin System, Additional Workers = 15,150 (30 years) Wisconsin Economic Development Corporation and the Wisconsin Technical College System, as well as our long-time partners the local chambers of commerce, we are positioned to Since 1997, the number of kindergartners has not been replacing effectively plan for the future. our graduating seniors. Already more than a year in the making, the project has seen the Wisconsin will double its 65-year-old and older population in the engagement of Wisconsin businesses, educators and leaders begin next 25 years, from 750,000 to 1.5 million. the discussion of ensuring a competitive state. Advisors with 8 Wisconsin Population 2010 census vs. 2040 projections Age # People Growth Save the Date 0-17 + 27,438 + 2.1%

18-64 + 15,150 + 0.4%

65-84 + 598,121 + 90.8%

85+ + 168,205 + 141.9% 94.7% of the growth is people over the age of 65!

expertise in the six focus areas have been identified to react to ideas generated by hundreds of Wisconsin citizens. And a culminating event has been planned for December 3 in Milwaukee to organize and prioritize the initiatives we will take forward together. This process will be repeated every year to ensure Wisconsin’s competitiveness. Though there are barriers to overcome such as access to venture capital, December 3, 2014 the worsening skills gap, infrastructure problems, an image problem, Wisconsin Center, Milwaukee issues with the state’s largest cities, and obstacles for growing jobs and the economy, we have great strengths. The Badger State boasts business diversity, a strong work ethic, a high quality of life, great business and education partnerships, good schools, an improving business climate and a “can do” attitude.BV www.futurewi.org Follow Morgan on Twitter @JimMorgan1960

State of Wisconsin Business Luncheon Wednesday, October 15, 2014 Monona Terrace Community & Convention Center, Madison Register online at www.wmc.org

Guest Speakers

Dr. Martin A. Regalia Governor Scott Walker Senior Vice President for Economic and Tax Policy and Chief Economist, U.S. Chamber of Commerce

Dan Ariens Damond Boatwright John Pfeifer President and CEO, Ariens Regional President/CEO, President, Mercury Marine Company Hospital Operations at SSM Health Care of Wisconsin Recent State Campaign Finance Developments Impact Business By Mike Wittenwyler

new law and two recent court of donors. Any restrictions on campaign decisions affect how campaigns will contributions can only be justified when beA financed in Wisconsin in 2014 and the limits prevent a direct quid pro quo beyond. corruption. Because aggregate contribution 2013 Wisconsin Act 153 limits do not relate to a threat that any single candidate will be corrupted, the 2013 Wisconsin Act 153 revises portions Watch a video explaining the Wisconsin Right to Court held these limits cannot be upheld. Life v. Barland 7th Circuit Court decision on WMC's of Wisconsin’s campaign finance and YouTube channel WMC501. lobbying laws. Highlights of the new law McCutcheon does not address base include: campaign contribution limits to candidates, political parties and PACs. - Wisconsin’s ban on corporate political • In soliciting funds for its PAC or Those contribution limits remain in spending is unconstitutional under conduit, a corporation may now spend place. Similarly, corporations are strictly Citizens United; significantly more money – up to prohibited from making campaign - The administrative rule that treats $20,000 or 20 percent of annual PAC contributions under federal and Wisconsin issue advocacy during the 30/60 day or conduit contributions. law. These source restrictions also remain in preelection period as fully regulable • A process was created for the place after McCutcheon. express advocacy/independent expenditures is unconstitutional; and, redirection of conduit funds contributed The Government Accountability Board by a member who no longer can be (“G.A.B.”) subsequently announced that - An administrative rule that imposes located. it is no longer enforcing Wisconsin’s PAC-like registration and reporting • Lobbyist campaign contributions can $10,000 annual aggregate individual requirements on all organizations that now be made earlier in an election contribution limit. As a result, individuals sponsor independent expenditures is year – April 15 of an even year for a fall may make an unlimited overall amount of unconstitutional as applied to sponsors election. campaign contributions provided that each who are not superPACs (such as 501(c) • Lobbyists may now deliver and contribution is within the respective base (4) organizations and other non- discuss PAC, conduit and nonlobbyist limit amount. Moreover, an individual is committee sponsors). also now able to contribute an unlimited campaign contributions at any time. TheWRTL decision also is an excellent amount to a PAC or state political party • An individual’s volunteer Internet summary of the history of campaign committee. activities are now free from regulation finance regulation and litigation in including sending or forwarding emails, Wisconsin Right to Life v. Barland (7th Wisconsin during the last 20 years. It linking to another person’s Internet site Circuit) covers in detail successful legal challenges or blogging. In 2010, the G.A.B. adopted an brought against the Elections Board McCutcheon v. Federal Election administrative rule that greatly expanded / G.A.B by our law firm on behalf of Commission (U.S. Supreme Court) the scope of communications subject to Wisconsin Manufacturers & Commerce. And, it discusses how despite losing in each On April 2, 2014, in McCutcheon v. FEC, regulation as independent expenditures. As of these instances, the G.A.B. continued to the U.S. Supreme Court struck down a result, issue advocacy communications push for greater regulation – not less – of federal limits on aggregate individual in the 30/60 days before an election that political speech. contributions to federal candidate identified a candidate would have been campaigns, political party committees presumed to be independent expenditures In short, the WRTL decision makes clear and PACs. The court held that the First and subject to full PAC regulation under that the government’s authority to regulate Amendment rights of donors are violated state campaign finance law, including political speech extends only to money by the federal campaign finance law. As donor disclosure. raised and spent for speech that is express a result, aggregate contribution limits in In response to the G.A.B.’s adoption of advocacy and that “ordinary political eight states – including Wisconsin – are this highly controversial rule, three lawsuits speech about issues, policy, and public also considered unconstitutional and were filed almost immediately after the rule officials must remain unencumbered.” BV unenforceable. took effect. On May 14, 2014, the Seventh Mike Wittenwyler is an Under McCutcheon, the Court held that Circuit U.S. Court of Appeals issues a administrative and regulatory federal limits on aggregate individual decision in the last of those lawsuits: attorney with Godfrey & Kahn. He can be reached at contributions to federal candidate Wisconsin Right to Life v. Barland. (608) 284-2616. campaigns, political party committees and The plaintiff prevailed in virtually all of its PACs violate the First Amendment rights arguments, including:

10 | Safety Training July - December 2014 The Wisconsin Safety Council, a division of WMC, is Wisconsin's leading provider of safety training and programming. WSC offers training throughout the year at locations across the state. www.wisafetycouncil.org MADISON AREA FOX VALLEY/GREEN BAY AREA WAUSAU/STEVENS POINT/ MARSHFIELD AREA August 4-6 October 14 Instructor Development Course (IDC) – First Aid/CPR/ Job Hazard Analysis August 21 AED November 12-13 Coaching the Lift Truck Operator, Train-the-Trainer August 11-14 OSHA 10hr Voluntary Compliance for General Industry Principles of Occupational Safety & Health (POSH) November 18 August 20 Supervisor Development: Safety & Health Fundamentals Coaching the Emergency Vehicle Operator (CEVO) Train- the-Trainer – Ambulance & Fire September 22-25 OSHA 30hr Voluntary Compliance for General Industry September 29 Wisconsin’s No. 1 Dental Plan Ergonomics: Managing for Results October 1 RCRA Compliance for Hazardous Waste Generators (AM) DOT HazMat Transportation Refresher (PM) October 7-8 Worker’s Compensation Law Symposium & Best Practices October 9 Incident Investigation: A Root Cause Analysis October 13-16 Safety Management Techniques (SMT) ctober BECAUSE IF O 21 Safety Inspections October 23 Coaching the Lift Truck Operator, Train-the-Trainer November 3 Selection & Proper Use of Fall Arrest Systems YOU IGNORE November 6 Crisis Management Conference & Expo November 10 Safety Communication & Training Techniques ecember YOUR TEETH, D 9 Effective Team Safety

MILWAUKEE AREA

July 16 THEY’LL GO Job Safety Analysis July 23 Safety Inspections August 5-6 OSHA 10hr Voluntary Compliance for General Industry AWAY. August 19 Creating a World Class Safety Culture September 11 Effective Team Safety September 18 Delta Dental of Wisconsin is dedicated to keeping your Confined Space (AM), Train-the-Trainer employees healthy. That’s why our benefit plans emphasize Lockout/Tagout (PM), Train-the-Trainer October 22 preventive services. Simple oral health additions to your Coaching the Lift Truck Operator, Train-the-Trainer wellness plan can make a difference in your employees’ December 1-4 overall health. OSHA 30hr Voluntary Compliance for General Industry December 11 How to Handle an OSHA Inspection Better health starts with a healthy mouth. And a healthy mouth starts with Delta Dental.

Chapter of DeltaDentalWI.com ENVIRONMENT

Eric Bott WMC Director of Environmental & Energy Policy

These Aren’t Your Grandpa’s Environmentalists n 1909, the man who coined the term Today that philosophy is largely absent such policies “Conservation Ethic,” U.S. Forest Service in mainstream environmentalism. Little contribute to larger and more destructive IChief Gifford Pinchot, engaged in a very concern is paid to the costs of policy on forest fires. public row with then U.S. Secretary of working families and almost none for This growing inflexibility should concern the Interior Richard Ballinger. Pinchot businesses. These days, environmentalists business. As these ideas radicalize, their was concerned that Ballinger might be almost seem to have adopted the attitude influence is growing. A common debate in engaging in what we would today call crony that if it’s good for humans, it must be bad political circles is whether or not the green capitalism through the preferential sale of for the environment. movement has supplanted labor as the chief the nation’s mineral, timber and hydrological One of the latest green fads is to argue source of influence in the Democratic Party. resources to well-connected elites. for a halt to economic growth. Let me Looking at Keystone XL and the War on Pinchot did not seek to leave these resources state that again. A growing number of Coal at the federal level or iron and sand untouched but quite the contrary; he wished environmentalists are calling for an end to mining in Wisconsin, the greens are batting to see them developed in a responsible economic growth. Drive around Madison a thousand whenever they play against labor. manner to the benefit of his fellow and you’ll see bumper stickers reading, Wealthy donors such as fossil fuel investor- Americans. Indeed, Pinchot would go on “Growing the economy is shrinking the turned-environmentalist Tom Steyer, to define forestry as “the art of producing ecosystem.” These are not your grandfather’s who has pledged $100 million to elect from the forest whatever it can yield for the environmentalists. likeminded Democrats to the U.S. Senate service of man.” So what is the this fall, are furthering the rise By January 1910, the dispute between philosophy of “...environmentalists almost in influence of hardline Pinchot and Ballinger had grown so heated modern greens? seem to have adopted the attitude greens. that President William Howard Taft was At times it that if it’s good for humans, it must be Practically speaking, forced to dismiss Pinchot, causing a split can be hard bad for the environment.” this means the partisan in the Republican Party and igniting a to tell. Today’s divide will continue to rift between Taft and Pinchot’s close environmentalists grow and our federal regulators ally Theodore Roosevelt. Two years later claim to support replacing coal-fired power at the EPA and other agencies will be more Roosevelt would mount a third party plants with natural gas and nuclear. Yet they apt to push ever bolder and costly regulatory challenge to Taft, resulting in the election oppose hydraulic fracturing to obtain the schemes. That’s bad news not just because it of America’s first progressive Democratic needed gas, building pipeline infrastructure creates a drag on our economy but because President, Woodrow Wilson. to move it, or constructing any new nuclear when environmental policy becomes a Pinchot’s philosophy, that we can facilities. political weapon, everybody – including the simultaneously preserve our environment Other times their agenda seems environment – loses. BV and utilize its resources toward the contradictory. They oppose importing Follow Eric on Twitter @BottWMC economic benefit of the nation, was once petroleum from Canadian oil sands even so powerfully held by conservationists that when the practical alternative is importing it contributed to the end of five decades equally heavy crude from Venezuela with an of near total Republican dominance in even greater carbon footprint. They oppose presidential elections (Grover Cleveland proper forest management practices because excepted). ‘nature should be left untouched’ even when

12 WMC at Home and on the Road

1 2

WMC was integral in passing SB 547 (now Act 1 378) – Phosphorus reform that will give employers a better tool to address phosphorus impairment in Wisconsin’s waterways in a smarter, more cost effective way. Pictured with Gov. Walker are bill authors Sen. Rob Cowles (R-2nd District) and Rep. Amy Loudenbeck (R-31st District).

4

3 Dr. Ausaf Sayeed, Consul General of India to the U.S. visited with WMC, WEDC and local 2 chambers to discuss economic development opportunities available in India. Pictured here are (L-R) Phil Fritsche, President of the Beaver Dam Area Chamber of Commerce; Dr. Sayeed; Secy. Reed Hall, WEDC; and Van Nutt, Exec. Director of the Middleton Chamber of Commerce. The Wisconsin Safety Council’s 72nd Annual Safety & Health Conference and Expo hosted 3 more than 1,200 safety and health professionals in Wisconsin Dells. Pictured with Janie Ritter, WSC Director, is Keni Thomas, former U.S. Army Ranger who keynoted the opening day of the conference. More than 165 high school students from Waupaca attended Mini Business World, produced 4 by WMC and hosted by the Waupaca Area Chamber of Commerce, to learn about the free enterprise system and opportunities available in Wisconsin. WMC’s Kurt Bauer visited Saint Thomas More High School in Milwaukee in April to see its 5 STEM program in action. Pictured is Dr. Mark Joerres (left), the school’s chief administrator, with student Rachel Welch, who helped build the robot pictured. Welch will be attending Worcester Polytechnic Institute this fall. WMC Chairman Dan Ariens, President & CEO of Ariens Company in Brillion, met with 6 Republican and Democratic Legislative leaders including Assembly Speaker Robin Vos (R-Burlington). WMC hosted a lunch to hear about trade opportunities in Canada. Pictured here are (L-R) Kurt 7 Bauer; Secy. Reed Hall, Wisconsin Economic Development Corporation; Roy Norton, Consul 5 General of Canada to the U.S.; and Secy. Rick Chandler, Wisconsin Department of Revenue.

6 7 Mercury Marine: Growing Strong in Wisconsin for 75 Years or the past 75 years, Mercury Marine has been a leader in Pfeifer says during the manufacturing, technology and innovation in Wisconsin. The economic downturn Fcompany’s rich history dates back to 1939 from the early days in in 2009, Mercury Cedarburg to present day in Fond du Lac. Mercury employs 3,100 Marine dedicated people at its Fond du Lac World Headquarters and directs 5,600 itself to strengthening employees globally. Mercury Marine has benefited the entire state core principles -- each new job at Mercury creates approximately 0.6 additional and continuing to jobs in the community. That’s 1,860 jobs created in the communities manufacture products surrounding Fond du Lac. of the highest quality. In 2009, Mercury employed 1,500 in Fond du Lac; present day, that Consumer Engagement, number has more than doubled. Extreme Reliability, Imagine Wisconsin and the Fox Valley without Mercury Marine – Intuitive Design and it’s an image no one wants to think about. Proactive Support are the brand pillars that Mercury Marine lives by. It is the foundation of the company’s global marketplace “I don’t want to imagine our state without Mercury Marine,” said activities which has served them well for 75 years and will continue Fond du Lac City Council President Sam Meyer. “It would cripple to do so well into the future. our community. I don’t think anyone should underestimate the value Mercury has to the entire state of Wisconsin.” “While the industry remains in flux, we are confident with our momentum and our body of work over the past few years, we will Mercury’s successes have been well documented. In 2014, its 75th set the tone for the entire industry and remain a leader in marine Anniversary, the company won the Wisconsin Manufacturer of technology and a company very the Year award which proud to be based in Fond du honored its robust list of Lac,” Pfeifer said. accomplishments in the workplace. In April, Mercury opened the doors to its new museum in “The past 12 months have Fond du Lac. The facility is a set the foundation for our trip down memory lane for the future growth,” said Mercury Marine President John Pfeifer. “We’ve company and the thousands of completed several multi-million dollar expansions which created people who have contributed jobs and growth opportunities that we plan to keep in the state of to its success. The museum Wisconsin.” showcases 75 years of innovation Those expansions, which added an additional 150,000 square feet to and technology – it also Mercury’s headquarters, were completed at the end of 2013. showcases a few non-marine exhibits such as the ZR-1 Mercury continues to hire – more than doubling its workforce from Corvette as well as snowmobiles, 2009-2013 – and there are still a number of job openings available chainsaws and Mercury’s early today. Recovery in this industry will be prolonged and uneven but dominance in NASCAR. BV Mercury Marine says it will continue leading the charge to make boating more affordable while hiring a world-class global workforce committed to quality and efficiency in every product leaving its production line.

14 A Profitable Partnership with the Disabled By David Laudon Owner, Venture Products, LLC

enture Products produces driveway markers and other lawn and garden Vsupplies. Since 2007, we have worked with A Place in the Business World Eisenhower Center, a vocational training center for people with disabilities, in for People with Disabilities Milwaukee. By David Ordan Growing up, I was blessed to have had an aunt who was mentally disabled. Aunt Diane an people with severe disabilities hold their own in today’s competitive business was a big part of our family. One of the most environment? memorable things she ever said to me was, CThe answer is yes – and here’s why. "You know, nephew David, I have a job." For more than 30 years, Eisenhower Center has been helping people with disabilities To me, that simple statement was replete gain vocational skills and job opportunities through its 66,000 sq. ft. center in with pride and dignity. A paycheck was a Milwaukee. part of the process, but the benefits went way beyond monetary value. Our clients are challenged with a range of developmental disabilities. These include cerebral palsy, traumatic brain injury, Down syndrome, autism, emotional disorders Working with Eisenhower Center is and a host of physical ailments that leaves the majority of our clients in wheel chairs. personal for me. But I am also a capitalist, Many require one-to-one assistance to complete daily living tasks that most of us take so quality output is important. The clients for granted, such as eating and using the at Eisenhower Center assemble parts, apply bathroom facilities. UPC stickers, repackage our product — and they do it well. Despite these challenges, Eisenhower Center has been able to create a vibrant As a business owner, I can testify that there workplace that occupies a valuable niche is no better feeling than running a profitable in the business marketplace. Working with venture while helping those less fortunate businesses and manufacturers throughout live as fully and independently as possible. Wisconsin, Eisenhower Center offers competitive bids on a range of projects, including assembly, sorting, product re-work services, mail order and more. For business owners, we are experts in projects that cannot be automated, are not worth sending overseas and which are an inefficient use of able-bodied employees’ times. In 30 years, Eisenhower Center has never lost a single contract due to quality control issues. Our workforce is motivated, eager to learn and professional. Yes, our clients have disabilities – but that has never stopped the center from helping them live as fully and independently as possible. Business owners who work with Eisenhower Center are confident they work with a full partner, who is equally concerned about their bottom line. BV David Ordan is the Development Director for Eisenhower Center in Milwaukee. Visit www. eisenhowercenter.org for more information.

15 Wisconsin Business Voice MADE IN WISCONSIN …the summer edition Ariens Company The scent of fresh-cut grass is one of the most obvious signs of summer and there is probably no chore more synonymous with summer than mowing the lawn. But did you know that a company in Brillion makes some of the most popular riding and walk behind mowers for commercial and residential mowing? For more than 80 655 West Ryan Street years, Ariens® has been the choice of discerning homeowners when it comes to Brillion, WI 54110 the purchase of lawn and garden equipment. Ariens also manufactures trimmers, (920) 756-4688 edgers, lawn sweepers and other equipment useful for keeping a lawn looking impeccable all summer. Ariens Year Established: 1933 products are available at independent power equipment dealers in North America and Europe, The Home Depot Number of Employees: 1,800 stores, broadline maintenance, repair and operating (MRO) suppliers, regional farm retailers and select online www.ariens.com retailers. The next time you step outside on a bright, sunny day and see neighbors mowing the lawn, know there is an excellent chance their mower was made in Wisconsin. Schoep’s Ice Cream Given that Wisconsin is "America's Dairyland" it should come as no surprise that nearly everyone’s favorite summer treat is ice cream. What you might be surprised to learn is that Wisconsin is home to a company that produced 12 million gallons of ice cream last year; that’s nearly a quarter of a billion scoops! Schoep's also manufactures frozen yogurt, lite ice cream, frozen custard, sherbet and novelties. Considering their modest start in 1928, making ice cream in the back of a Madison grocery store, they are quite proud of their current ranking as Wisconsin's largest independent ice cream manufacturer. The Schoep's "Home Pak" half-gallon line, familiar 514 Division Street to ice cream connoisseurs throughout the Midwest, was first introduced after World War II and is still the heart Madison, WI 53704 of the Schoep's product line today. The next time you open the freezer for a cold snack on a blistering summer (608) 249-6411 day, remember it’s extremely likely that your ice cream was made in Wisconsin. Year Established: 1928 Number of Employees: 140 www.schoepsicecream.com Johnsonville Sausage, LLC There are few foods as critical to summer in Wisconsin as the bratwurst. Many meat lovers are probably already aware that the company with the No. 1 brand of sausage in America is headquartered in Sheboygan Falls. Since P.O. Box 906 its beginning in 1945, Johnsonville Sausage has become Sheboygan Falls, WI 53085 well-known for using its family recipe to make the sausage with the BIG TASTE. (920) 453-6900 Their award-winning product lines include bratwurst, Italian, smoked-cooked, breakfast, and snack sausage. Year Established: 1945 Johnsonville products are now available in all 50 states and in about 30 additional countries, including Japan, Number of Members France, Mexico and Canada. Each year on Memorial Day weekend, Johnsonville Sausage sponsors Brat Fest in (Employees): 1,400 Madison, rain or shine, with proceeds benefiting local charities that help staff the event. The next time you grill www.johnsonville.com this summer and brats are on the menu, know that it is almost certain they were made in our great state.

Harley-Davidson Motor Company Harley-Davidson Motor Company, the only major U.S.-based motorcycle manufacturer, produces custom, cruiser and touring motorcycles and offers a complete line of Harley-Davidson motorcycle parts, accessories, riding gear and apparel, and general merchandise. Founded in Milwaukee in 1903, Harley-Davidson is proud to call Wisconsin home with its corporate headquarters located in Milwaukee, the Willie G. Davidson Product Development Center in 3700 W. Juneau Avenue Wauwatosa, and manufacturing facilities in Menomonee Falls and Tomahawk. The 912,000-square-foot Pilgrim Milwaukee, WI 53201 Road Powertrain Operations facility in Menomonee Falls produces engines and transmissions for the Touring, Year Established: 1903 Softail®, Dyna®, and Sportster® model families and Custom Vehicle Operations™, and the 192,000-square- Number of Employees: 6,500 foot Tomahawk Operations facility produces windshields, Tour-Paks and saddle bags for Harley-Davidson www.harley-davidson.com motorcycles. Fulfilling dreams of personal freedom is more than a phrase at Harley-Davidson. It’s a purpose and a passion. And it's headquartered right here in Wisconsin. Fraud and Risk: A Global Issue By Penny Foust

he war against internal and external fraud remains. The current number one type of fraudulent attack, despite the decline in overall fraud landscape continues to change the types of fraud, how check use. According to the Association for Financial Professionals’ itT impacts businesses, and the best practices needed to mitigate 2014 Payments Fraud and Control Survey, the second most popular potential fraud loss. New twists on fraud schemes and techniques vehicle for payments fraud is corporate and consumer credit and surface as payment options change. Although today’s sophisticated debit cards. On a more positive note, ACH or electronic debit fraud technology and online information tools provide more convenient has decreased in the past year. ways to conduct business, they are also turning payments fraud into Financial losses from check fraud reach into the billions of dollars a global issue. each year and affect companies of all sizes and industries. Although Building an effective deterrence plan is critical, since a great ACH fraud decreased in the past year, the increased volume of deal of time and money is spent trying to reconstruct fraudulent ACH payments still creates an increased potential for ACH Fraud. transactions to track down the perpetrator and reclaim missing This white-collar crime is no longer limited to large corporations funds. Most people who commit fraud in the workplace are not either. career criminals; they are long-time trusted staff members with Financial institutions must make fraud protection tools, such no criminal history. Most frauds are not one-time events either. as check and ACH positive pay, an integral part of their cash The famed criminologist, Donald R. Cressey, originated the Fraud management product and service offering. These powerful Triangle hypothesis, outlining the three factors that must be present transaction management tools are designed to prevent and mitigate for an ordinary person to commit fraud: pressure, opportunity, and losses due to check fraud and unauthorized ACH debits. rationalization. The Fraud Triangle applies to most embezzlers and occupational fraudsters but it does not apply to the person who Most fraudsters understand best practices and technology may vary takes a job with the intent to steal from the company. with the size of a company. Where larger companies might have sophisticated technology and staff dedicated to more advanced All companies – small, medium and large – are vulnerable to security measures, many smaller to medium-size companies may fraud, which leaves room for a variety of considerations. Does your not. Remember to be on guard against inside jobs, which include company have adequate controls in place to prevent it? Do you test long-term, loyal employees, too. Ensure you have procedures in your company’s fraud health, and if so, how frequently? You should place to detect and deter fraud. Educate your staff not to click on also take steps that may help prevent fraud. Some ideas include links or open attachments from unsolicited emails. Never supply conducting an annual fraud risk assessment, which is a best practice confidential information, even if it appears to be from a company that can easily be implemented with little to no expense to your with whom you do business. Utilize resources to help mitigate business. Utilize free training resources featuring checklists and fraud risk, which today are available to companies of any size. Talk videos; samples can be found on the Association of Certified Fraud with your trusted advisors to understand what tools are available to Examiners (ACFE) website: www.acfe.com. Become familiar with mitigate risk and understand what insurance you have in place. BV a fraud prevention checklist that can help you identify inherent Penny Foust, CTP, is Vice President/Director of risks and implement policies and procedures to mitigate the risk of Treasury Management for Bank Mutual. She may fraud loss. be contacted at (414) 257-8210. We see a number of financial fraud cases originating from phishing emails to keystroke loggers, to more sophisticated attacks like ZeuS malware. However, standard check fraud continues to be the

WMC in the News

WMC's Scott Manley was featured on Wisconsin Public Television's Kurt Bauer debated Wisconsin job growth on Up Front with Mike Here and Now to talk about the EPA's proposed mandate on carbon Gousha. emissions. 17 Wisconsin Business Voice BUSINESS WORLD

Steve Benzschawel Director of Business World

Business World - A Crash Course in Entrepreneurship! his summer more than 300 high school students The creativity doesn’t stop with came to Business World for a hands-on experience in our simulations at camp. I see entrepreneurship.T Hosted at Edgewood College in Madison and true entrepreneurial qualities in St. Norbert College in De Pere, our programs continue to teach our Business World students. The and inspire the next generation of entrepreneurs and business stalwarts are there – baby sitting leaders. and lawn care – but we also are proud to see our alumni starting Working in groups of twelve, ventures like a photography business and a smartphone repair students embark on a four-day company! Others are business venture, competing to utilizing their create the most innovative product entrepreneurial at camp. An executive management spirit as engineers team is elected and department and production positions are staffed - the process personnel begins! The production team works working for diligently to construct a prototype Wisconsin from a pile of everyday items. Every companies like Briggs & company needs solid branding, so the Stratton, John Deere and marketing department crafts an image and brand consistent with Georgia-Pacific. the company values identified by the young executives. The finance For over 30 years, students have come to Business department monitors the fiscal health of the fledgling company World to learn about our free market economy and through an online simulation that introduces students to basic the value of entrepreneurship to society. Students corporate finance and the elements of running a manufacturing learn skills and gain information that will continue company. to serve them throughout their professional Students learn the risks and rewards of entrepreneurship first- careers. Some alumni get so much out of the program they return hand as they compete against other companies at camp and learn to teach the next generation of BW students. Eileen Baus (Class of the free market has winners and losers – you don’t get a trophy ’86) and Andy Lemorande (’94) are both former students turned just for showing up! Okay, they do get plenty of swag items, company advisors. but the trophies and ribbons are earned! Competitions at camp Twelve students, one adult include a trade show, a commercial contest and shareholder report volunteer, and a pile of presentations complete with tough questions from the adult panel everyday items. The rest, is of “shareholder” judges. Business World. BV With this summer’s programs behind us, it is time to shift the focus to the Mini Business World programs for the 2014-15 school year. We take our Business World program on the road to communities all around Wisconsin. Contact us to learn about sponsorship opportunities and how you can bring BW to your hometown!

@WiBusinessWorld Wisconsin-Business-World www.wibusinessworld.org 18 Check out our website; www.crystal-clean.com or call 877-938-7948 and ask for Dean Popovich for more information on our services and member only discounts and pricing. BUSINESS DEVELOPMENT

20 BUSINESS DEVELOPMENT Business Development in Wisconsin Are We on the Right Track? By Mark Crawford

rying to define Wisconsin’s business The Great Recession hit Wisconsin’s appeal can be challenging—not only manufacturing businesses hard. Their isT the economic climate changing, there recovery has been aided by the state are geographic conditions beyond our legislature’s Manufacturing and control (winter!), as well as long-standing Agriculture Tax Credit, which will preconceived ideas about Wisconsin eventually lower Wisconsin’s tax liability (cows, cheeseheads, beer) that are hard for eligible manufacturers from 7.8 to break. We’re also coming out of a to 0.4 percent by 2016. WEDC also damaging recession—how many of our administers the very successful Economic new gains are due to natural recovery, Development Tax Credit and and how many are due to policies and Jobs Tax Credit programs. structural improvements implemented by “Wisconsin has always had a “…property taxes on a median- Governor Scott Walker? Can Wisconsin great quality of life and great draw serious investment capital? Are there people,” comments Eric Sauey, valued home decreased for the enough talented workers to go around? CEO of Seats Incorporated first time in twelve years.” This mix of variables makes it hard for in Reedsburg. “The business businesses to decide if Wisconsin should climate had greatly improved be on their short list of places to locate since Scott Walker became governor. Just or expand. to have the highest elected official in the “There is great potential today for business state tell the world that Wisconsin wants development throughout Wisconsin,” businesses here says volumes.” says Reed Hall, CEO/Secretary of the Wisconsin Economic Development If You Believe in Rankings… Corporation (WEDC). “We are making Surveys and polls can be tricky to policy decisions today that are intended interpret—that said, several surveys to assure long-term success for our indicate Wisconsin is moving up in residents, businesses and those companies the ranks. For example, CNBC ranks considering investing here.” Wisconsin as the fifth-best state in the Wisconsin’s economy has improved nation for manufacturing job growth. steadily over the last few years. The most “This is good economic news,” indicates recent WMC survey ( January 2014) Jay Smith, Chairman/CEO of Teel found 95 percent of Wisconsin employers Plastics in Baraboo. “Manufacturing is believe the state is headed in the right a key part of our economic engine and direction (up from 10 percent in 2010). represents nearly 500,000 jobs—20 Private-sector job losses of 133,000 have percent of the state’s workforce.” turned into more than 100,000 new jobs. According to Hall, nearly 20,000 net new businesses have been created in the last 3.5 years.

21 Wisconsin Business Voice Other favorable rankings for Wisconsin include: “I also sense some deterioration of the historic Wisconsin work • Sixteenth for total private sector jobs created (Bureau of Labor ethic, which may be due to wages being depressed for so long, Statistics) cultural changes and a decline in the percentage of women in the workforce,” says Still. “And even though there have been some • Seventh for private sector job growth per capita (Bureau of improvements, investment in Wisconsin’s start-up economy is still Economic Analysis) short of the mark for attracting significant outside dollars.” • Tenth for job creation (Gallup Job Creation Index) A big negative factor for many companies is that Wisconsin is In contrast (and perhaps showing the vagaries of economic not a right-to-work state. “I think the first thing companies think surveys), Forbes’ “2013 Best States for Business” survey ranked about, if they will be employing significant numbers of people, Wisconsin a dismal 41st. Yet CNBC ranks Wisconsin 22nd in its is locating in a right-to-work state,” says Joe Pregont, president “Best States for Business” survey. of Prent Corporation in Janesville. “Very simply, Wisconsin can Regardless of survey results, “the good news is that Wisconsin has greatly improve its business appeal by becoming the next right-to- improved significantly over the last few years,” says Paul Jadin, work state.” president of MadREP, the economic development engine formerly Finding and retaining high-quality employees continues to be a known as Thrive in Madison. “The bad news is that we started challenge for businesses. The state’s Fast Forward Program helps from a very low base. Overall, though, Wisconsin demonstrates address the growing need for skilled workers by providing worker significant potential for business development. The fact that we training grants and making other investments to prepare workers have a balanced budget is certainly not lost on businesses, as it for jobs. The program also includes resources to develop a cutting- illustrates a stable and more predictable environment.” edge labor market information system in the future. Wisconsin’s Strengths “Not only will the system provide real-time labor intelligence, it will also serve as an effective forum to connect job seekers and Tom Still, president of the Wisconsin Technology Council, employers with available jobs,” says Hall. “Recent legislation scores Wisconsin’s potential for business development as “fair” for provides more than $35 million in additional funding to expand the several reasons, especially its improved economic diversity, which Wisconsin Fast Forward program.” means it can perform better during economic downturns. “The overall fiscal condition of state government has also improved,” he tart p unding says, “which should lessen fears for companies about growing or S -U F relocating here. Our educational system is strong and the quality One of the best ways to strengthen and diversify an economy is of life in Wisconsin is something that can overcome other business by providing enough financial support to home-grown, start-up development obstacles, such as weather. A longer- term benefit is our ample water supply—that’s not true in many places across the country.” Other key strengths for Wisconsin include a well- maintained transportation infrastructure, a highly skilled and dedicated workforce that is supported by outstanding university and technical college systems, and some of the best health-care services in the BUSINESS DEVELOPMENT country. “The Upper Midwest is a major center of manufacturing and agriculture in the U.S.,” says Sauey. “Proximity to these industries is a strategic advantage for Wisconsin companies. We have plenty of material suppliers, a good transportation network for distribution, and well-educated workers. STRENGTHS RANKINGS The availability of water and electric supply is also a big advantage, as is the quality of life in Wisconsin.”

Wisconsin’s Weaknesses WEAKNESSES START-UP There are several issues that might cause companies FUNDS to think twice about locating in Wisconsin. Wisconsin has failed to attract well-educated immigrants, who are needed to expand the state’s workforce. Although rural areas of the state offer some strong attributes (such as affordable, hard- working labor), rural economic development is MOVING lagging—in part because of lack of high-speed FORWARD broadband in some areas.

22 companies to keep them local, instead of having them move out of the Ideadvance Seed Fund is designed to help commercialize state where more investment capital is available. technology and ideas developed on UW campuses across the state,” Unfortunately, Wisconsin continues to significantly underperform says Smith. “It is also open to companies that license technology peers such as Minnesota and Michigan in annual venture activity from WiSys of the UWM Research Foundation.” and new business formation. Moving Forward “To put the gap in perspective, if we just matched Minnesota's One of the biggest business-development challenges Wisconsin has performance, it would likely result in $500 million to $1 billion is refining its identity, or brand. in additional investment into the state over ten years,” says Joe Kirgues, co-founder of gener8tor, a start-up accelerator in Madison “I honestly don’t think the biggest thing keeping companies from and Milwaukee. coming here is taxes,” says Still. “I think it is a lack of knowledge about the state, perceptions that it’s off the beaten path and the Help is on the way, however—over the last five years, a number idea that Wisconsin really can’t offer the truly big-bucks incentive of new venture funds have started with an emphasis on digital packages to move. Although we are getting the state’s fiscal house technology start-ups, including 4490, CSA Partners, the state's new in order, what we are not doing well is marketing the state’s Fund of Funds and gener8tor. “These entrants have significantly number-one brand outside the Green Bay Packers and dairy—the improved the financing climate for Wisconsin's emerging start- University of Wisconsin. Policymakers need to understand UW is a ups,” adds Kirgues. global, high-quality brand.” The Wisconsin Department of Administration’s $25 million Fund The state continues to educate site-selection consultants about the of Funds program will start funding emerging-growth companies business merits of Wisconsin. this fall. BrightStar Wisconsin is a non-profit investment fund that supports early stage companies that are focused on job creation. “Thanks to targeted efforts from both WEDC and regional groups 4490 Ventures, a partnership between the Wisconsin Alumni like MadREP, we know that site selectors are impressed with what Research Foundation and the State of Wisconsin Investment is happening in Wisconsin,” says Jadin. “Members of the Site Board, will invest $30 million in financing the growing IT sector. Selectors’ Guild were very receptive to Governor Walker at his recent visit to their annual conference. These key decision-makers “WEDC understands the importance of entrepreneurship and a are paying attention to Wisconsin in a way they haven’t before.” strong start-up community,” says Hall. “We have great ideas coming out of our state and we need to start, seed and scale our companies.” Hall notes WEDC must continue to develop partnerships across the state to make Wisconsin more appealing to business For the seed stage, WEDC has launched several innovative investments. Partners include Wisconsin Manufacturers & programs: Commerce, the state’s local chambers of commerce, regional • Seed Accelerators provides mentoring, business modeling and and local economic development entities, regional planning financing to take ideas/technologies to commercialization commissions and banks and credit unions. • Capital Catalyst provides matching grants to communities and “We must also expand our international operations to make the other entities to capitalize a seed fund that supports high- state more appealing to business growth,” adds Hall. “Our recent growth start-up and emerging growth companies work with foreign trade commissioners is a good example. As the In the seed to scale stage, WEDC’s Qualified New Business world population shifts, exports and foreign investment will take on Venture program provides an investor tax credit to individuals an increasingly important role.” BV investing into high tech businesses. WEDC also has technology Crawford is a Madison-based freelance writer. development loans that match equity, grants and debt financing to support R&D to commercialization. Several programs that support entrepreneurs are also available through the UW and UW-Extension systems. “For example,

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

Thanks to these Foundation Sponsors

23 Wisconsin Business Voice SAFETY

Janie Ritter Director of Wisconsin Safety Council

Wisconsin Corporate Safety Awards or the past 20 years, the Wisconsin Safety Council has partnered with the Wisconsin Department of Workforce Development to sponsor the Corporate Safety Awards. I was honored to present these at Four annual conference this spring. The awards program honors Wisconsin businesses for exemplary safety records and excellence in health and safety management. The awards are given in four industry sectors: manufacturing; agricultural, forestry, transportation, mining and utilities; construction; and other. The categories are further broken down by size within those industries. This year’s 13 winners include: Fitesa Green Bay produces Wausau Window and Wall chemically bonded carded Systems manufactures products with the majority engineered window and of their facility devoted to curtainwall systems. Ergonomic nonwovens fabric manufacturing, principles are considered producing fabrics that are whenever they purchase primarily sold to the hygiene or build new equipment, market for use in baby diapers. or make a process change. In 2013, Fitesa Green Bay When implementing a new produced enough nonwovens process, they utilize ergonomic material to completely cover well measurement tools to evaluate over 33,000 football fields. Fitesa has gone an incredible 16 years the extent of risk for each task that must be performed. without a lost time incident. GE Healthcare – Madison is a global provider of anesthesia delivery Agropur inc. in Luxemburg is a worldwide supplier of award- and ventilation systems. GE Madison participated in (and won!) the winning cheese and whey products. Agropur recently trained Dane County Bike Challenge employees in CPR/First Aid/AED/ Bloodborne Pathogen in 2013 tallying 18,000+ miles clean up. In early 2013, this promoting active and healthy training was put to the test lifestyles. Additionally, their when Luxemburg’s employees ‘Green Team’ established an on- administered CPR to a truck site employee garden, where they driver who was onsite securing a grew fresh produce to encourage load, and who stopped breathing healthy eating. Any produce not and had no pulse. Their AED used by the employees is donated was applied and activated, which to the local food pantry. enabled the driver to regain independent breathing before Neenah Foundry produces some of the world’s highest quality departing in the ambulance. municipal and industrial castings, including manhole frames, lids, ornate tree grates and curb boxes, and can be found in streets and on Expera Specialty Solutions – Nicolet Mill manufactures a variety sidewalks anywhere in the world. of specialty papers. The Nicolet Mill has been a VPP star site since Employee involvement and 1995, one of the first locations in Wisconsin. The mill has seen adoption of safety principles has steady improvement in safety yielded incident rate reductions performance in terms of reduced of 40 percent or higher, and no recordable injuries, and in 2012 lost work day incidents in 2013, and 2013 they achieved the continuing a streak of 3.7 million lowest injury rate ever at the working hours. facility with just one recordable injury each year.

24 Alliant Energy – Wisconsin Flint Hills Resources – Power and Light provides Terminal Operations is a leading domestic utility customers in refining and chemicals company the Midwest with electric and that includes gasoline, diesel, jet natural gas services. In 2013, fuel, propane, asphalt binders and Alliant Energy enhanced their asphalt emulsions. The backbone Contractor Safety Program of FHR’s safety program is its by partnering with ISNet- Safe Work Permit process which world, who now manages their includes reviewing the hazards of contractor safety monitoring the job with the maintenance or process. Alliant employees are contract workers prior to permits allowed, and encouraged, to take home personal protective equip- being issued. ment to work on projects around the house, supporting their 24/7 safety goal. Warehouse Specialists, Inc. has transformed itself into one of the largest privately held logistics companies in the U.S. Safety analysis Lakehead Painting Company is a family-owned industrial and and planning start long before the acceptance of new business at commercial painting contractor primarily in the oil and gas industry WSI. The company utilizes with a focus on painting, abrasive blasting and fiber glassing of crude its Chemical Review Team oil storage tanks. Lakehead to review its chemical storage has added an in-house safety opportunities and identify and quality training facility, the hazards associated with implemented a new health and the products, infrastructure safety program manual and concerns, training and reporting tool box talk books specific to requirements, equipment needed Lakehead’s safety programs and and personal protection required policies. Lakehead also welcomes to safely handle the products. all employee family members to Only after the CRT review become certified in first aid and and approval does WSI accept new chemicals into a facility. WSI’s CPR training at no cost. greatest safety and health achievement in 2013 was decreasing their Lost Day Incident Rate by 62 percent. Bassett Mechanical is a mechanical contractor which Colony Brands, Inc. is one of designs, builds and services the world’s largest and most refrigeration, air conditioning, successful catalog companies. heating, dust collection, process Colony Brands declared the piping and plumbing systems third Wednesday of each month for commercial, industrial and Safety Day; time is set aside marine applications. Bassett’s on this day for employees to total recordable injury rate for participate in safety talks, quizzes 2013 dropped to 1.8 from 5.2 and potentially win prizes. The in 2012; and proudly sits at success of this safety promotion 1,223,615 hours without a lost was outstanding – the company time injury, which represents averaged 2,500 employees over 649 days of work for their crews. the past three years who participated, 10,000 quizzes were collected and 36 safety talks were presented, with a 98 percent participation AZCO INC. is a full-service industrial contractor and fabricator rate company wide. serving the power generation market including gas, coal and nuclear, alternative energy, metal Again, congratulations to all of the 2013 Corporate Safety Award casting and steel mills, and winners! BV petrochemical and industrial Follow WSC on Twitter @WISafetyCouncil manufacturing industries. AZCO INC. committed to certify The Corporate Safety Awards are sponsored by all supervisors in the OSHA 30-hour program, and their fabrication facilities have achieved over 17 years without a lost time incident. 25 Wisconsin Business Voice EXPORTING

Mike Shoys WMC Senior Vice President

Cranes Crossing Oceans n a country that often bemoans the fact that it doesn’t “make things” like it used to, Manitowoc Cranes is a U.S.-based company that still thrives as a manufacturer and runs an equally vibrant export business. IIn fact, more than half of the company’s $4 billion in revenue is generated outside of the country, with most of its cranes assembled in Wisconsin and Pennsylvania. Manitowoc Cranes subscribes to an overarching theory when it comes to its exports: product support is the essential foundation to a successful export strategy. This includes offering expertise, customer service, job site assistance, maintenance programs, great warranties and more. Wisconsin Exporters Reap Benefits of As explained by Larry Weyers, South Korea Free Trade Agreement global executive vice president of Manitowoc Cranes, “Product A free trade agreement (FTA) that took effect in 2012 has already support generates trust in boosted Wisconsin’s exports to South Korea, and this number is our company’s cranes and the only expected to increase further as Wisconsin companies step up services that back them. It instills to meet the demands of this growing market. South Korea fared confidence among customers to better than most during the recent global financial crisis. import such a large ticket item In 2013, Wisconsin’s exports to South Korea grew by seven as a multi-million dollar crane. percent over the prior year, to a total of $431 million, and the Customers can rest assured that country rose from 13th to 11th in the ranking of the state’s largest they will have help in operating, export destinations. Major export categories include industrial machinery ($87 million), servicing and maintaining the medical and scientific instruments ($74 million), and meat ($46 million), which jumped crane, and are therefore willing nearly 67 percent over the prior year thanks to FTA. At the beginning of this year, South to import the crane into their Korea’s president announced plans to focus on growing five service industries—healthcare, country.” education, tourism, finance, Take the company’s relationship and software. with Chunjo Ltd., a construction WISCONSIN EXPORTING FAST FACTS In the medical devices arena, company in South Korea. Chunjo Wisconsin companies are well Wisconsin companies exported more than $5.6 billion in imported a Manitowoc 2,500- goods in the first quarter of 2014. positioned for sales in South ton 31000 in 2013, one of the Korea: Korean companies largest cranes ever made and not TOP DESTINATION FOR WISCONSIN EXPORTS IN FIRST QUARTER make comparatively lower- a cheap machine by any standard. end medical devices, and the Manitowoc worked with Chunjo country depends on imports on selecting the crane, training the 34+66 34+12+54 46+6+48 52+5+43 57+4+39 for high-end medical devices. 33.7% 12.1% 6.3% 5.0% 3.7% company to operate it and sending CANADA MEXICO CHINA JAPAN UNITED experts to help its operators The energy sector represents KINGDOM another key opportunity: complete a massive power plant WISCONSIN’S TOP EXPORTED PRODUCTS IN FIRST QUARTER project. South Korea has set targets to decrease its use of coal “Chunjo would not have and oil, and increase the purchased this crane from us if not 28+72 28+9+63 37+9+54 46+8+46 56+4+40 proportion of its energy that 5% 2% 1% 1% 4% for the several years we’ve worked 27. 9. 9. 8. 4. comes from shale gas, solar, INDUSTRIAL MEDICAL/ ELECTRICAL VEHICLES PLASTICS to cultivate the relationship MACHINERY SCIENTIFIC MACHINERY AND PARTS wind, geothermal and biofuels INSTRUMENTS by means of excellent product over the next 15 to 20 years. support,” Weyers said. “It’s for PRODUCTS WITH SIGNIFICANT GROWTH FROM Q1 2013 TO Q1 2014 this same reason that when the For more information on power plant project was complete, exporting to South Korea 624% 521% 108% 40% 14% Chunjo then bought 50 rough- or other parts of the world, STEAM FORKLIFT COMPUTERS & RAW FUR X-RAY TURBINES TRUCKS COMPONENTS SKINS EQUIPMENT terrain cranes from our Grove line visit www.inwisconsin.com/ in a single purchase this year.” exporting. Source: U.S. Census Bureau data as reported by Global Trade Information Services 26 Manitowoc accomplishes this product support through a vast network of “Crane Care” service locations around the globe. A Crane Care location in Seoul helped Chunjo navigate its Manitowoc 31000 purchase and the projects on which it would eventually work. These locations help companies like Chunjo make informed product purchases, assist in lift plans for complex projects, and when needed, handle maintenance and service support. “If not for our Crane Care service in Seoul that provides excellent product support to Chunjo and similar companies, Manitowoc would not be in as good a position to export so many cranes to South Korea,” Weyers said. “They might have purchased a cheaper, inferior crane from a manufacturer in their own region, for example. We see this scenario playing out in countries on every continent.” For businesses in the U.S. looking to export their products to other countries around the world the lesson is clear: A company’s export operations can only be as good as the product support that backs them. BV

Why You Should Hire a National Guard Member By Major General Dunbar

isconsin business leaders should make hiring a National you hire a Guardsman, you get an employee who is drug-free, Guard member a priority. Why? Not out of charity, but disciplined and punctual. Service members respect authority and becauseW it makes good business sense and it is how a business can the chain of command in an organization. The level of responsibility contribute to defending this great nation. The 10,000 Soldiers and and maturity required of military service members at a young age is Airmen in your Wisconsin National Guard are among the most unparalleled in any field. highly trained, educated and professional men and women in Military service members are challenged with constantly changing Wisconsin. Hiring a Guardsman is an investment in America and and diverse environments where they must work together your business’s future. to accomplish their mission. Many of our Guardsmen have Our Soldiers and Airmen are disciplined, physically fit, and know experienced working in different cultures around the world. how to work in a team environment. They are highly skilled in Today’s National Guard is a national treasure and fulfills two key leadership and they know how to roles for our nation. We are the nation’s primary combat follow. They took an oath to reserve for the U.S. Army and U.S. Air Force, and we defend our nation and willingly “When your employee returns, are the first military responders here at home when accept that they can be they bring back incredible life disaster strikes. When you hire a Guardsman you mobilized at any time for an get a dedicated individual who has technical skills, overseas conflict or a domestic experience gained in the cauldron leadership ability and lives by a code of core values emergency here at home. That of a combat deployment.” embodying integrity, courage, selfless service, trust and takes guts! honor. When the Guard is mobilized, as it Make hiring a National Guard Soldier or Airman a priority. Do has often been since September 11, 2001, employers bear a burden. it for the right reasons. Don’t hire a Guardsman out of charity or They lose the employee while he/she is deployed. However, when pity – we don’t need that. Hire a National Guard member because it your employee returns, he/she brings back incredible life experience is patriotic and a way for your business to support national defense gained in the cauldron of a combat deployment. That kind of – we all have a responsibility, not just those in uniform. Hire a leadership is unique and valuable. National Guard member because it makes good business sense as it Our service members are experts in their military disciplines. is an investment in exceptional human talent. Make it a priority – Those skill sets include truck drivers, engineers, carpenters, masons, it’s the right thing to do. BV electricians, surveyors, pilots, heavy equipment operators, logistics Major General Donald P. Dunbar is the Adjutant experts, information technology specialists, vehicle and aircraft General for the Wisconsin National Guard. maintenance mechanics, human resources professionals and medical personnel to name just a few. Each Soldier and Airman receives continual education over his/her military career allowing them to master both their technical skills and also leadership techniques. Perhaps even more important than the technical skill sets are the intangible traits our men and women in uniform possess. When 27 Wisconsin Business Voice Investing for Success By Mary Burke

’ve spent most of my thirty-year career in – but the workforce he needs just isn’t We need to do more to encourage the private sector. At Trek Bicycle in the there. With just two more engineers entrepreneurship and startup businesses in Iearly 1990s, it was my job to open up new and additional welders he could increase order for our economy to grow – creating European markets to sell great Wisconsin capacity. more opportunity for businesses both products overseas. Later, I was the Director With urgency, I would bring together established and new. Competing and of Strategic Planning and Forecasting at industry and education leaders to devise a winning in today’s economy means thinking Trek for nearly a decade. Now, I’m running game plan to fill key shortages – ASAP! If globally, and there’s a lot more to do to for Governor to make Wisconsin a thriving, we need 250 more engineers a year, then increase exports and strengthen Wisconsin’s top-ten economy. we’ll do it. Leadership and foresight is brand internationally. The success we’ve had at Trek informs needed so our education system is meeting Finally, we need strong communities where everything I’ve done since I left, and businesses’ current and projected needs. workers and entrepreneurs want to live, raise everything I’ll do as Governor. From To grow a business, you need to set clear their families and make a life. insisting on accountability and metrics- objectives and lay out your plan, as well as None of the strategies in my plan are based decision-making to making strategic how you’ll measure your success. You have controversial or needlessly political, nor investments to grow – there’s more we can to get the right people with the right skills should they be. They are a roadmap for do to strengthen Wisconsin. in the right positions. And you have to leadership that puts ideas that work front That includes ensuring our tax code is encourage innovation and new thinking to and center, regardless of whether they’re competitive with states around the country. compete and win in the global economy. “Democratic” or “Republican.” I’m flattered The best way to reduce the tax burden It’s time we took that businesslike approach that WMC Board Member John Torinus while ensuring we have the workforce, to growing our overall economy so that called my plan “the best he’d ever seen infrastructure and safe communities Wisconsin businesses can thrive. from a Wisconsin candidate” – and I hope businesses need to thrive is by growing our Each of those elements listed above - that that you’ll take a look for yourself at www. economy and our tax base. Cutting our way successful businesses do every day - are burkeforwisconsin.com/jobs. to prosperity isn’t going to get the job done, embedded in my plan for the state economy, My commitment is straightforward. As but neither is throwing money at it – it’s “Invest for Success.” It starts with a major Governor, I’ll work with groups like WMC about setting budget priorities. shift of our economic development and and businesses around the state, as well It’s also about bringing people together to policy focus, to concentrate on industry as with labor, industry experts and our tackle the real challenges facing our state. clusters so we’re meeting the needs of universities to make sure our economy is Recently, I talked with a manufacturer in whole industries rather than individual growing and businesses are thriving. BV Southeast Wisconsin looking to expand companies. As I mentioned above, a big part Mary Burke is a former of that cluster approach Executive at Trek Bicycle and is ensuring our workforce led the Wisconsin is prepared for the jobs Department of Commerce businesses need to fill. from 2005-2007. She is the Democratic candidate for Governor.

Mary Burke recently briefed the WMC Board of Directors on her plan to grow the Wisconsin economy.

28 TRANSPORTATION

Jason Culotta WMC Director of Tax & Transportation Policy

Growing Freight Demand Requires Rail Solution ith a brutal winter behind us and the economy showing already speculate the rail industry will be forced to increase rates to more signs of activity, pressure is growing on our national slow increasing demand. Will the public benefits of converting over- infrastructureW system – especially rail – to handle increasing freight the-road truck freight to rail and intermodal become a focus of our volumes. infrastructure policy debate? Rail shipments for a range of commodities are growing at a strong Wisconsin is benefiting from the capacity expansion of the pace. Crude oil trains have drawn the most media attention, though privately-owned Class I railroads, as the BNSF, CN, Canadian they comprise less than two percent of carloads. Shipments of grain, Pacific, and Union Pacific railroads have all recently made intermodal containers, and sand, stone and gravel by rail have seen significant investments in the state. strong gains this year, improving by 15 percent, 6.6 percent, and 5.5 The state also maintains programs to encourage shipper access to percent, respectively, year-to-date over 2013. freight rail on light-density lines across Wisconsin. Short-line and Freight rail volume would grow even faster if railroads could quickly regional railroads like Wisconsin & Southern are seeing increased add capacity. Increasing demand for moving freight by rail has carload totals as many shippers have utilized state loans (paid back generated unprecedented investment from the railroad industry. with interest over time) to move goods by rail, both on Class I and Including capital projects such as double-tracking of mainlines, smaller railroads. installing passing sidings and industrial spurs, and acquiring Access to rail is particularly important to our agricultural and forest locomotives to meet changing needs of shippers. products industries. Moving both raw and finished products to mill The seven major Class I railroads are spending a record $15 billion or market is crucial to those industries, especially as more of what in private funds on capital expenditure our state produces is exported. improvements this year. That compares “The seven major Class I railroads Supply chain managers will be reevaluating their to about $50 billion spent by the are spending a record $15 billion in appetite for “just in time” shipping in favor of federal government on transportation, the cost-effectiveness of moving many goods mostly on highways. private funds on capital expenditure improvements this year.” more slowly. The marketplace will require rail as The shortfall in federal highway well as lake and river ports to handle greater freight funding has been widely discussed yet volumes. remains unresolved. The trucking industry, a crucial pillar of the With the inevitable increase in freight, the federal government economy, faces driver shortages and regulatory challenges that have increasingly unable to fund highway capacity, and trucking beset by no short-term answers. challenges, stress on our transportation and logistics infrastructure The Federal Highway Administration has projected a 45 percent will continue. Rail and intermodal will play a growing role in increase in freight volume will occur between 2012 and 2040. moving freight. BV Without the construction of more highway capacity and the Follow Jason on Twitter @JGCulotta inevitable increase in road congestion, how is more freight going to move? Out of necessity more freight will have to move by rail. Will we soon be discussing a shortfall in the railroad industry’s ability to finance additional capital investment? Some analysts

29 Wisconsin Business Voice WMC-BusinessVoice-5x7.75-HRb.pdf 1 5/20/14 9:41 AM

Follow WMC on Channel WMC501

Interview with Consul General of Canada.

ABR provides Work Ready Talent to meet the administrative, call center, light industrial and skilled industrial needs of Wisconsin businesses in:

•Appleton •La Crosse •Stevens Point Interview with Consul General of India. •Brookfield •Madison •Sturgeon Bay •Green Bay •Manitowoc •Wausau •Oshkosh •Sparta

Our Candidate Centric approach attracts and retains only the best talent! And, ABR’s talent and client’s rate Business World for high school students. us among the top staffing firms in North America.

Making connections between businesses and legislators.

www.abrjobs.com

Seeking Nominations Interview with National Association of Manufacturers' Jennifer McNelly. Wisconsin Business Achievement Award Presented by the Flowers Family Foundation Deadline August 1 Visit www.wmc.org for more information.

Legislative wrap-up with Speaker Vos. 30 Your DNR Working for You By Cathy Stepp

s we enjoy summer in Wisconsin, I’m excited to share with Finally, I am proud to say we are leaders in state government in you some recent efforts we’re engaged in at your Wisconsin sharing with the public how investing in their DNR is paying DepartmentA of Natural Resources to better connect with businesses dividends, including our recently released agency report card and the economy. available online: http://dnr.wi.gov/about/documents/leanII/ As you have probably heard me say in previous guest columns DNRresultsFeb2014.pdf. The report is a one-page “dashboard” that and at speaking events around the state, I believe protecting the includes recent economic measures including meeting our goal of environment and ensuring economic vitality go hand in hand. faster turnaround times for issuing air and water permits, along with The exceptional quality of life available in Wisconsin is one of our meeting all our timber harvest goals. greatest attractions for individuals and businesses in the state. Telling our customers how we’re performing is not new, but we To that end, since becoming secretary we’ve renewed our think this report card will be a great new way to show in 2014 and commitment as an agency to better mesh businesses and business beyond how we measure up and where we can improve. I encourage development with managing our state’s world class natural resources. everyone to take a look at the report card to see how we’re doing. Some recent activities to share with you: You can also see where we’ve been in our 2013 Annual Report available online: http://dnr.wi.gov/about/ We are building off our successful launch of the Office of Business documents/2013YearReview.pdf. The annual report illustrates Support, Science and Sustainability by expanding the role of the the big strides we have made in communications and using new Office’s Small Business Assistance Program; this will help us go technologies to help us be more accessible all over the state, even beyond regulatory help and better connect our staff with new and when we’re sitting at our desks. We also now have more experts expanding small businesses. and more boots on the ground to meet your business needs, for the Our sector development specialists have made great strides in benefit of our economy and for our natural resources. serving as the agency’s points of contact for businesses, raising our I am extremely fortunate to be the secretary of an agency that is profile in the business community. We recently added business filled with such passionate and talented people, and I’m proud of sector specialists to focus on broader economic issues including what we’ve accomplished as a state, and as an agency, by working waterfront redevelopment. together. I look forward to more successful times ahead! BV We continue to improve our coordination and regulatory efforts for Cathy Stepp is Secretary of the Wisconsin industrial sand mining, including adding new staff to help handle Department of Natural Resources. compliance and air permit issues in this growing sector. Our lean initiative is also rolling along; staff have recently completed a third round of process improvement projects which helped us speed-up permit review times, reduce paperwork and save precious budget dollars.

Celebrate Manufacturing Month in October wimanufacturingmonth.org

WMC will once again be promoting manufacturing throughout the month of October. The point of Manufacturing Month is to expose students, parents, educators, legislators, and others to the career opportunities available in the manufacturing industry. Visit www.wimanufacturingmonth.org for up-to-date information on tours and events happening throughout the month. Contact Susan Nyffenegger, [email protected] or (608) 258-3400, for more information OCTOBER 2014 or to add your event to the list.

31 Wisconsin Business Voice ISSUE ADVOCACY

Jim Pugh Treasurer, WMC Issues Mobilization Council, Inc.

WMC Issue Advocacy The Time to Give is Now!

“Every year, the WMC IMC spends millions to educate the united in the face of policy threats that would make YOUR public and drive the business agenda. We ALL benefit from company less competitive. Imagine what Wisconsin would be like the public policy outcomes that occur because of WMC’s issue if Scott Walker were not the governor.” advocacy, and therefore it is critical that we all support the As WMC’s Chairman Dan Ariens said in a recent letter to WMC issue advocacy campaign.” supporters, “Our opponents will be well-funded and WMC IMC Daniel T. Ariens, President & CEO will provide the business perspective to the public.” Ariens Company, Brillion Truly, the time to give is now! WMC Chairman WMC IMC is currently taking donations in the mail and online. Over the next few months, Governor Scott Walker and the pro- You can make an online donation with your credit card at www. business lawmakers will face brutal attacks from big unions, radical wmcimc.org or you can mail your check to WMC IMC, P.O. Box environmentalists, personal injury lawyers and others dedicated to 352, Madison WI, 53701. taking our state backwards. WMC IMC needs to raise funds for television, cable television, They want to go back to higher taxes, more regulation and frivolous radio, direct mail, digital advertising, phone banks and more. All lawsuits populated by jackpot justice. donations to WMC IMC are kept strictly confidential, and are not subject to disclosure under state or federal law. Donations The business community, under the leadership of WMC and the are unlimited, and we can accept donations from individuals and WMC Issues Mobilization Council, Inc., needs to fight back and corporations. deliver the business message. WMC IMC is a 501(c)(4) issue advocacy organization dedicated to driving the business agenda There has never been a more important time for the business through advocacy, which is followed by WMC’s top-shelf lobbying community in our state to stand united to advance the cause of at the Capitol. WMC is Wisconsin’s leading business issue economic freedom. advocacy organization – our policy agenda and aggressive lobbying We need to send a message to our adversaries that we will not be efforts ensure proven results. intimidated and that we have the courage of our convictions to Over the past seven years, WMC IMC has raised and spent $20 stand in the public arena and fight back for job creation. million to educate the public as the business community has Please, write your check today to WMC IMC! BV successfully achieved historic public policy victories – tax cuts, regulation relief, lawsuit reform, mining reform and more. We will stand up for you and your business in the face of the policy threats posed by our adversaries. “Governor Scott Walker and pro-growth lawmakers embraced our vision, and we have set a course for renewal,” said WMC President/ CEO Kurt Bauer. “Wisconsin’s business community must remain

32 WISCONSIN BUSINESS FRIEND of the ENVIRONMENT AWARDS Presented May 14, 2014 at the Country Springs Hotel, Pewaukee

For the 25th year in a row, Wisconsin Manufacturers & Commerce is recognizing nine companies with the Wisconsin Business Friend of the Environment Award. This year’s winners have been chosen for programs that demonstrate an innovative approach to environmental protection, or a level of effort beyond that which is required by regulatory compliance. These success stories reflect the continued commitment of Wisconsin industry to environmental protection. Wisconsin Business Friend of the Environment award winners were selected by an independent judging panel that included representatives from industry, the Department of Natural Resources, and the University of Wisconsin. 2014 Award Winners

Sustainability Category

New Glarus Brewing Company Milk Source, LLC Expera Specialty Solutions New Glarus (small) Kaukauna (medium) Kaukauna (large)

Environmental Stewardship Category

Badger Alloys Inpro Madison Gas and Electric Milwaukee (small) Muskego (medium) Madison (large)

Environmental Innovation Category

Badger Mining Corporation BRP US Inc. / Evinrude Mercury Marine Berlin (small) Sturtevant (medium) Fond du Lac (large)

33 Wisconsin Business Voice The Domino Effect – Reverse It! By Linda Hansen

f you own or manage a business you are well aware of the and never consider the risks, personally and financially, involved domino effect over-regulation, excessive taxation and intrusive in job creation. This is yet another domino that falls when policies Igovernment mandates can have on your corporate and personal do not encourage business growth, but instead promote wealth prosperity. With each new wave of legislation, tax code changes, redistribution and dependency on government. Economic illiteracy executive orders or environmental regulations comes a sea of details contributes to the spread of misinformation and misdirected blame that need to be dealt with in order to ensure compliance. Legal on job providers. fees, reallocation of staff and resources, and a host of other expenses Most job providers want to ensure employees are paid well, treated combine to create a disaster for profitability. The focus becomes fairly, and have opportunities for intellectual and career growth. how to comply and survive, rather than how to create, innovate, Yet, we all know employees may unwittingly vote for policies that and expand. The cost of compliance can become so prohibitive could put their job in jeopardy and possibly put their employer out that companies are often forced to cut services or products offered, of business. It becomes a vicious circle of negative falling dominoes, relocate, reduce their workforce, or (sadly) close their doors. The but the trend can be reversed. ripple effects can be overwhelming for any business, but for the small business owner they can be devastatingly destructive. The Employers have a unique opportunity and, in my opinion, dominoes fall one after the other as jobs are lost and families and responsibility to educate their workforce about threats to corporate communities suffer. or personal prosperity. Many have expressed fear of speaking out and facing possible criticism. However, doing so truthfully and in a How do we reverse the domino effect? How do we encourage non-partisan manner shows respect and concern for the employee’s pro-business, pro-growth policies when we are well being and encourages team building and busy struggling just to survive? Many job “An informed, trust between employer and employee. providers realize that uniting together in Honesty about economic realities pro-business advocacy groups, lobbying educated, economically literate workforce translates to an increase in only builds awareness, which in turn for pro-business legislation, and electing builds respect. When done properly, leaders who understand the needs of the informed, educated, and economically educating employees about public business community are all important steps literate voters.” policy issues affecting their job can be to reversing the negative domino effect, but those one of the most important things an employer actions, while positive, are not enough to reverse the trend. We must can do to reverse the negative domino effects brought on by poor first identify the cause of the problem, which lies in a cultural lack policies. An informed, educated, economically literate workforce of understanding about basic civics, economics, and why profits translates to an increase in informed, educated, and economically matter to job creation. Secondly, we must recognize and capitalize literate voters. Voters who understand the need for policies on opportunities to increase economic literacy, especially among promoting growth and opportunity will elect leaders who believe in employees, and do so in a non-partisan manner. the same. And the domino effect will begin to reverse. BV While many of us realize the business sector is the backbone of Linda J. Hansen is Founder and President of our economy providing millions of jobs and billions of dollars Prosperity 101, LLC. in tax revenues, not all employees share that understanding. It is popular in our culture to demonize the successful entrepreneur

34 If you run a business, you know. The most valuable things are also the hardest to get.

Your business didn’t grow overnight. It came from years of hard work, confidence in what you could do, and making smart decisions. That’s why it’s so valuable.

Which is why an insurance policy from West Bend makes sense. It protects Wisconsin manufacturers, large and small, so you can focus on doing what you do best.

And with West Bend, you’re backed by the knowledge and experience of an independent insurance agent.

West Bend. Insurance you buy when you can’t afford anything less.

To find out more, contact an official supplier of the Silver Lining®. Visit thesilverlining.com for the name of the one nearest you. Movers and Makers Two Fox Valley Tech Grads are Part of a Movement to Invigorate Careers in Manufacturing onathan Patton was inches away from a career in the NBA. But While in high school, Ryan Geiger was already planning for his Jwhen that dream faded, he reflected on playing in the 2005 career and life. The world of manufacturing expanded the aspirations Division 1 NCAA Basketball Tournament and learned that every for the now 21-year-old Brillion, Wisconsin native. experience is a once-in-a-lifetime opportunity. Later that year, Geiger’s way of thinking mirrors a proactive pathway at Fox Valley the 32-year-old native of Picayune, Mississippi helped victims of Technical College. Last year, the college implemented its JumpStart Hurricane Katrina. initiative with five regional high schools, including Geiger’s alma With the support of his family, Patton looked to life after basketball. mater, Brillion High School. The program is designed to offer dual Among his family are his brothers college football player Terry credits to high school students who wish to pursue careers in the Carter and Charles Woodson. Yes, that Charles Woodson – former in-demand industry of machine tool. Heisman Trophy winner and 2011 Green Bay Packers Super Bowl Geiger graduated from FVTC’s Machine Tool Technology program champion. in May. The training helped advance his career at Ariens Company, While attending one of his brother’s games in Green Bay, Patton where he started as an apprentice under the JumpStart partnership met a senior-level official at Hattiesburg Paper Company. That umbrella while still in high school. friendly encounter led him down a new career path. “I had always Geiger will soon become a journeyman machinist, and he is been interested in manufacturing because you can make virtually enrolled in FVTC’s Mechanical Design Technology program to anything,” he recalls. “I received a job offer at the Green Bay plant, enhance his skills even further. “I love what I’m doing in advanced and I knew a career in manufacturing was for me.” manufacturing and have a tremendous start to my career and life,” To increase his technical capabilities, Patton enrolled in the Fox adds Geiger. BV Valley Technical College’s Package and Label Printing program. “It Jonathan Patton was a no-brainer,” he says. “Fox Valley Tech is known as the best (background) shares his school for printing in the country, and going there made me more insight on a flexographic valuable to my company.” press. Patton has also participated in marketing activities with FVTC to help spread the word about the rewards of working in manufacturing. “In just one year, you can gain the skills needed for a serious career in a high-growth industry,” he says. “You’ll earn a good salary without taking on the debt you would get at a four-year college.” Patton is now proudly enjoying a rewarding career as a quality assurance specialist for Hattiesburg Paper Company.

Ryan Geiger of FVTC’s Machine Tool program, which has seen 100% graduate placement.

36 You see the destination. We see your path.

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

OFFICES IN MILWAUKEE, MADISON, WAUKESHA, GREEN BAY AND APPLETON, WISCONSIN AND WASHINGTON, D.C. © 2013 Godfrey & Kahn, S.C. Thoughts from Retiring Legislators WMC asked retiring representatives Clark and Severson for final thoughts as they finish their final legislative session.

By Rep. Fred Clark, 81st Assembly District (D-Baraboo)

fter having the honor of representing The role of elected officials everywhere is to allocate public resources parts of Sauk, Iowa, Columbia, and and balance competing interests. While we all want prosperity DaneA counties in the State Assembly for for our communities, the reality is that some kinds of economic three terms, I’ll be returning to the private development can bring as many problems as they do benefits. sector. The experience of public service in Open-pit iron mining is one example of economic development Wisconsin is one I’ve proudly shared with that creates distinct winners and losers. While I do not oppose iron many Wisconsin citizens before me, and one mines (last I checked my 2013 F-150 was made from iron by UAW I’ll now pass on. workers in Dearborn, MI) I opposed the iron mining legislation As the ranking Democratic member of the AB-1 last session because it failed to strike proper balance between Assembly Committee on Jobs, Economy and mining and protecting local communities and clean air and water. Mining I’ve been involved first-hand in many of issues of interest Unfortunately, the role of special interests and money in politics to WMC members. While we’ve disagreed strongly with our can make it very difficult for even the most capable and well- majority-party colleagues on many policies, I’ve worked successfully intentioned legislators of either party to do what’s best for the with colleagues of both parties whenever we’ve had the chance to people they represent when presented with tough choices and one- solve real problems and get something done. In 2013 for example, sided pressure. I worked closely with Rep. Mike Kuglitsch (R-New Berlin) to pass Act 41 which created Wisconsin’s new Venture Capital Investment I believe all Wisconsin citizens will be best served whenever our Program. Additionally, I’ve worked closely with members of the elected representatives take positions and cast votes based on what business community at home to make sure I am representing their is best for the people at home, not what is best for party leadership interests to the best of my ability. or the nice people in suits who happen to represent one side. There are always two sides to an issue and legislators doing their job will I am a long-time small business owner and employer who has always try to understand both. waded through my fair share of state regulations and oversight. Overall I strongly believe our economy and our private businesses If, instead of taking the easy road of cutting taxes and regulations, do best when we have a strong and effective state government. we take the high road of balancing interests and maintaining critical public investments, Wisconsin WILL begin a sustained recovery as The kind of economic growth that creates stable, long-term stable business and good-paying jobs grow and the quality of life for prosperity in communities of all sizes requires public investment everyone in Wisconsin improves. That is the road ahead I hope we in quality of life issues like good roads, high-performing public will follow. BV schools, desirable public parks and downtowns, and clean air and water. Maintaining these assets requires sustained public investment Fred Clark represents the 81st Assembly District. He can be reached where the pay-back period is measured in decades, not quarters. at (608) 266-7746. Wisconsin has long enjoyed its reputation as a state where clean air, water, lakes and forests go hand in hand with a vibrant, diverse economy. While it may create short-term benefits for select business sectors, weakening or eliminating necessary regulations and oversight and reducing taxes without attending to quality of life issues is like having ice cream for dinner but skipping the vegetables.

38 Thoughts from Retiring Legislators

By Erik Severson, 28th Assembly District (R-Star Prairie)

his legislative session has been both on Mental Health. It was an honor to chair the Taskforce as memorable as well as bittersweet, we worked to improve mental health statutes that had not been asT I announced that I am not seeking updated since the 1970s. Wisconsin can now be seen as a leader in reelection. While this decision was not mental health care reform and I look forward to watching continued easy, my children are growing up and I do improvements in coming years. not want to miss any important milestones Many individuals have asked if I have any advice to pass along in their lives. Looking back on my four to the next person representing the 28th Assembly District. My years in the Legislature, I am proud of advice to him or her would be to work hard and give your best effort the work that I have been a part of, most because the people of the 28th District deserve it. The residents of importantly eliminating the budget deficit, Polk, Burnett, and St. Croix counties are tremendous people you improving insufficient mental health standards, and promoting more need to consider with every decision you make. By working hard to responsible government. help these great people, you will earn their respect and the respect During my time at the Capitol, especially with the passage of Act of your fellow Representatives. Perhaps most important is to hire 10, I know that I have made a difference in the lives of average a staff that you can trust to do a great job. I have been fortunate Wisconsinites. While the Act 10 process was a difficult time, I to have a wonderful staff throughout my time in office who have fully believe Wisconsin has set the standard when it comes to helped me tremendously on a daily basis. The four hour drive from state budget control by controlling both state expenditures and the 28th District is a tough one, but it is made much easier with property taxes. During my four years in office the reforms we made a great staff. Lastly, enjoy the experience and don’t forget to have to the size of government and its fiscal power have benefitted both fun while you are working at the Capitol. There are many great and individuals and businesses across the state. I truly believe I am interesting people, so make the most of every opportunity you are leaving Wisconsin in a better economic place than it was when I given. Best of luck. BV first ran four years ago. Erik Severson represents the 28th Assembly District. He can be In addition to Act 10, I am most proud of the work I accomplished reached at (608) 267-2365. as chair of the Health Committee, including the passage of the mental health care package developed by the Speaker’s Taskforce

39 Wisconsin Business Voice CHAMBER CORNER

Opportunities with African American Businesses By Dr. Eve M. Hall

he African-American entrepreneur Madam C. J. Walker, whose from The Center for American Progress recently reported African life spanned 1867-1919, reportedly stated “I am not satisfied American women being the fastest growing segment of women- inT making money for myself. I endeavor to provide employment for owned businesses and starting businesses at a rate six times the hundreds of women of our race.” As a self-made millionaire, Walker national average. Their $2.7 million firms are generating $226.8 was ahead of her time as an entrepreneur and manufacturer of hair billion in annual revenue and employing 1.4 million people. care products; ultimately becoming a philanthropist and social I began this article with one of my favorite past entrepreneurs, activist for worthy endeavors advancing the black race. She held a Madam C. J. Walker, born Sarah Breedlove, to illustrate that Hair Culturist Union of America convention in Philadelphia for successful entrepreneurship and employment are part of our her representatives, and rewarded high sales and recruitment with past and can be part of the present. Earl Graves, Sr. for example, money and prizes. According to official biographer and great-great founder of the magazine Black Enterprise in 1970, exemplifies an granddaughter of Walker, A’Lelia Bundles, this was likely the first entrepreneur whose media product remains strong today as a vehicle national meeting of businesswomen. Madam C. J. Walker employed to promote black entrepreneurs and communicate success stories. hundreds of African American women and reflects the research When black business stories were not popular or of interest, Graves today indicating that minority firms tend to hire other minorities. went against the odds to challenge the industry and thus create an Much of the news reported related to the state of Wisconsin and employment pipeline for minorities in print media. In our own state, Milwaukee is dim – the city ranks last in minority entrepreneurship, we have African American newspapers and magazines delivering educational outcomes for minority students, segregation, success stories in education, business, philanthropy, and the arts incarceration disparities, highest unemployment of African through minority writers and photographers. American men, and the highest concentration of black businesses Our city and state has the opportunity to capitalize on its assets. in the central city as compared to other metropolitan areas where According to the U.S. Census Bureau’s 2007 Survey of Business these businesses are widespread. African Americans featured in Owners and a 2013 issue brief by the University of Wisconsin- the news often are reflected in the negative or limited to sports, Milwaukee Center on Economic Development, African American entertainment, and music. Not that these industries are unworthy of owned businesses in Milwaukee doubled between 1997 and 2007; mention, but there is so much more. from 3,872 to 8,054 in the metropolitan area with employment I could go on and on about what’s “not” occurring and how bad increasing from 6,320 to 9,801. Let’s work together to build it is. However, I challenge us to focus on the opportunities and upon these numbers as we approach a new report and survey to possibilities our landscape contains. As the President and CEO of be released in 2015. With our chamber’s Revolving Loan Fund, the African American Chamber of Commerce, my concentration is Women in Business Series, Entrepreneurship Mentoring Project identifying the value-add of our community versus the deficits. In and other programs and services, I am meeting with businessmen our growing chamber membership, we have hardworking African and women committed to expansion and job creation through American entrepreneurs and business owners in construction, their firms and corporate representatives on increased contract professional services and trades seeking to strengthen and opportunities through strategic partnerships. expand their businesses. Professional services are in the areas We can use the challenging set of circumstances in our city and state of technology, engineering, printing, professional training and to complain or problem solve. I choose the latter as we grow our coaching, public relations and marketing, and retail, to name a African American chamber to become a pipeline and example for few. Our state struggles with a reputation of being last in critical what is right in our communities across this state. BV categories, yet growing and enhancing minority firms, in this case, African American, can serve as a vehicle to address the woes of Dr. Eve M. Hall is President/CEO of the African unemployment and entrepreneurship. American Chamber of Commerce. According to the Commerce Department’s Minority Business Development, and U.S. Census Bureau’s 2007 Survey of Business Owners, African American-owned firms in the U.S. increased 60.5 percent between 2002 and 2007 to 1.9 million firms; driving job creation 22 percent beyond non-minority firms. Farah Z. Ahmad

40 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 at 608-238-8008.

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

Member FDIC YOUR SUCCESS COMES FIRST.

Business Banking | Specialized Lending | Equipment Finance | Retirement Services | Private Wealth Management Member of

North America

An association of legally independent firms