CelebrateWISCONSIN October as October 2012: Issue 4 Manufacturing Month

Official magazine of Manufacturers & Commerce Getting a Grip on Healthcare

Inside:  Healthcare: Best Practices & Policy Initiatives Celebrating Manufacturing Month in October & : What's Best for Wisconsin?

Wisconsin’s National GOP Leaders Page 4

WISCONSIN From the Editor Not in my lifetime has Wisconsin held such a Business Voice prominent spot in national politics. In this issue  The head of the Republican National Who Broke the Economy? Committee, , is a proud Kurt R. Bauer, WMC’s President/CEO, dissects who is to blame for the 2 Great Recession. Wisconsin native. We have a governor who Wisconsin Leads the Nation made international news because of his WMC’s Senior Vice President James Buchen applauds Wisconsin’s courage to restore frugality here in Wisconsin. 4 leaders in the national spotlight. We have a sitting U.S. Congressman on the Legislative Voting Record & Working for Wisconsin Awards Vice Presidential ticket, and we have a solid View the Legislative Voting Record from the 2011-12 session and see statesman in Senator Ron Johnson who has 6 which legislators received an award their 75% or better voting record. achieved national prominence in only two The Quotes Behind the Workforce Skills Gap years. If Tommy Thompson wins the upcoming 8 WMC Foundation President Jim Morgan talks about the impetus for election, it will be the first time since 1957 WMC’s involvement in solving the workforce paradox. that Wisconsin will have Republicans in both Step-up to the Job-Skill Challenge U.S. Senate seats. This guest editorial from Todd Berry, President of the Wisconsin 10 Taxpayers Alliance, talks about the skills shortage. Regardless of the outcome in November, Affordable Care Act business leaders face challenges. I’m sure Wisconsin is moving forward to implement the federal healthcare act – issues such as rising healthcare costs, 12 what that means for employers. taxes, employment concerns, and continued Looming Federal Tax Increases uncertainty keep many of you up at night. WMC’s Director of Tax & Transportation Policy, Jason Culotta, details 13 the federal tax increases that will take effect in January. The effects of the Affordable Care Act will not Collision Course for Higher Energy Prices be fully known for quite some time, but we do Scott Manley, WMC’s Director of Environmental & Energy Policy, know Wisconsin employers have been leading 14 breaks down the EPA Train Wreck. the way in developing best practice initiatives Launching Youth with Disabilities into the Workplace to control costs and help their employees live Tailored Label Products tells the story of one of their most productive 16 box makers. healthier lives and be more productive. Getting a Grip on Healthcare This edition of Business Voice focuses on Wisconsin employers are leading the way in healthcare best practices. healthcare – from both a policy, and a human 18 This month’s lead article features the issue of healthcare from the perspective of the providers, insurers and employers. perspective. New Marketing Campaign for WEDC Paul Jadin, CEO/Secretary of Wisconsin Economic Development 22 Corporation introduces the new campaign to lure new businesses to Wisconsin. Made in Wisconsin Katy Ryder Pettersen This month’s Made in Wisconsin feature includes a small brush Editor, 24 company supplying specialty brushes to more than 1,200 companies, Wisconsin Business Voice the world’s most well-known lip balm and the company that makes [email protected] survey markers for some of the most famous places on the globe. Wisconsin Leading the Way in Healthcare Reform Rebecca Hogan, WMC’s Director of Health & Human Resource Policy, 26 makes the case that Wisconsin has had it right all along when it comes to healthcare cost reform. Ask the Board WMC Board Member Dave Yanda, President/CEO of Lakeside Foods 28 in Manitowoc, shares his thoughts on the effect of this summer’s drought. Healthcare Best Practices WMC has written a series of more than 25 healthcare best practices. 29 This feature pulls out the key points from those papers. Workplace Violence: Preventing the Unthinkable Wisconsin Safety Council Director Janie Ritter shares tips to help Wisconsin Business Voice is published quarterly by Wisconsin 30 employers prevent workplace violence incidents. Manufacturers & Commerce. WMC is Wisconsin’s chamber of commerce, manufacturers’ association, and safety council representing What’s Best for Wisconsin Businesses? businesses of all sizes and from every sector of the economy. Send Candidates for U.S. Senate Tommy Thompson and Tammy Baldwin address changes to WMC, P.O. Box 352, Madison, WI 53701-0352. 34 share their vision for what each will do for Wisconsin businesses if WMC's physical address is 501 E. Washington Avenue, Madison, elected. WI 53703, (608) 258-3400. This publication is proudly printed on More to Madison than Politics paper made in Wisconsin. Greater Madison Chamber of Commerce retiring President Jennifer Kurt R. Bauer, WMC President/CEO 36 Alexander writes about the non-political side of Madison. Katy Ryder Pettersen, Editor ([email protected]) Jane Sutter, Designer ([email protected]) Who Broke the Economy? Kurt R. Bauer, WMC President/CEO

o one trusts the ones who On September 30, 1999, reported broke it to fix it. the move “will encourage those banks to extend home NTherefore, assigning blame mortgages to individuals whose credit is generally not good as to which party’s policies enough to qualify for conventional loans.” The article went were responsible for the Great on to say Fannie Mae “has been under increasing pressure Recession is critical to winning from the Clinton Administration to expand mortgage loans the 2012 presidential race and among low and moderate income people....” why the Obama Campaign has When the first signs of what former Federal Reserve produced a very effective television Chairman Alan Greenspan referred to as “froth” began to ad featuring former President Bill appear in the housing market, it was Democrats who were Clinton. In the ad, Clinton says in denial. and the Republicans Congressman Barney Frank (D-MA), then the ranking want to return to “the policies that Democrat on the House Financial Services Committee caused the problem in the and destined to become one of the principal authors of the first place.” Dodd-Frank Act of 2010, said in 2003 that critics were What’s interesting is neither Clinton nor the Democrats exaggerating “a threat of safety and soundness.” He called offer details about what specific policies they are talking Fannie and Freddie “fundamentally sound financially” about. Perhaps that’s for good reason because the historical and accused the Bush Administration, which was pushing record doesn’t support the charge. GSE reform, of conjuring “up the possibility of serious Most economists say the recession was caused by the financial losses to the Treasury, which I don’t see.” (As of burst housing bubble. The bubble, in turn, was caused by a July, taxpayers have pumped $183.8 billion into Fannie and combination of low interest rates and intentionally relaxed Freddie since 2008.) underwriting standards by Fannie Mae and Freddie Mac, Frank wasn’t alone. Other prominent Democrats in the Government Sponsored Entities (GSEs) chartered by Congress, including Senator Charles Schumer (D-NY), Congress to buy mortgages from banks and other mortgage now the number two Democrat in the U.S. Senate, and originators in what is called the secondary market. Congresswoman Maxine Waters (D-CA) also rejected calls Instead of encouraging people to achieve the American to reverse course on the misguided cheap money/easy credit Dream by saving for a down payment and buying a modest approach to expanding homeownership. “starter” home they could afford the monthly payments Short memories have helped Clinton, Obama and the and upkeep on, government policies created a shortcut. Democrats get away with their false narrative that it Cheap money and easy credit would make home ownership was actually unspecified Republican policies that ruined accessible to people with lower incomes and/or less than the economy. The 2008 election helped as well. It was a perfect credit histories. Democratic landslide because voters blamed George W. The result was millions of newly “qualified” homebuyers Bush for the crisis if for no other reason than that he was flooded the market, inflating prices and creating a president when the near collapse occurred. nationwide housing bubble that eventually led to the Victors get to write history and ironically, once in control financial crisis of 2008. of the and both houses of Congress, it was Democrats who also got to try and fix what they helped In fairness, both political parties supported the idea of BV an “ownership society” and there is plenty of blame to go break. around, but it was Clinton who advanced the policies that can be directly traced to the cause of the Great Recession. In 1999, Clinton signed into law the Gramm-Leach-Bliley Act, which many accuse of loosening the Depression- era Glass-Steagall Act financial reforms. That same year, Clinton pressured Fannie Mae to ease credit requirements on loans that the GSE purchased from mortgage lenders.

Follow Kurt on Twitter @Kurt_R_Bauer

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(800) 728-8326 Des Moines, IA Cedar Falls, IA Madison, WI Minneapolis, MN St. Paul, MN team-companies.com Wisconsin Leads the Nation By James A. Buchen, WMC Senior Vice President of Government Relations

n a remarkable series of events, Since his election in 2010, Johnson quickly established himself Wisconsin’s top political as an expert on one of the principle issues of our time – the Ileaders have become some of federal deficit. His in-depth understanding of the complexities our nation’s top political leaders of the federal budget lead Senate leadership to take the unusual and they intend to lead our step of appointing the freshman Senator to both the Senate county back to fiscal sanity and Appropriations Committee and the Budget Committee where economic prosperity. They are he has continued to effectively champion the issue of deficit bringing Wisconsin values and reduction. His efforts have gained the attention of the national Wisconsin-tested fiscal and media where he has become a regular guest on various news economic policies to bear in talk shows. He has positioned himself to play a leading role in solving some of the nation’s most any deficit reduction effort in the next session of congress. intractable problems – crushing Former Governor/U.S. Senate Candidate deficits and protracted unemployment. And the country is indeed fortunate to have them burst onto the national stage at Tommy Thompson this most challenging moment in our nation’s history. The list Governor Thompson entered the U.S. Senate race against of Wisconsin-bred national leaders includes… Tammy Baldwin as a well-respected national leader with an Governor Scott Walker The national focus on Governor Walker’s efforts to balance our state budget and reform public sector collective bargaining laws was sharpened when he decisively won a contentious recall election. The recall became something of a national referendum on fiscal policy and a triumph for the proposition that the cost of government can be reduced without gutting essential services. Walker’s principled leadership, bold policy agenda and impressive results have established him as a role model not only for other governors but our national leaders as well. Congressman/Vice Presidential Candidate Congressman Ryan firmly established himself as a national leader when he emerged as the principle architect of the GOP plans to balance the budget and reform and other entitlement programs. His selection as Mitt Romney’s Vice Presidential running mate has served to further elevate the stature of his policy proposals and broaden the audience for his message. Few politicians in our nation’s history have proven to be as conversant in the arcane details of budgetary policy or as able to communicate those issues as clearly and effectively to the body politic. Clearly his selection strengthens the GOP’s national ticket. U.S. Senator Ron Johnson With his upset victory over Russ Feingold, Senator Johnson became only the second Republican elected to the U.S. Senate from Wisconsin in the last 50 years and is the only manufacturer currently serving in the Senate.

4 impressive record of accomplishment. As the longest serving Governor in Wisconsin history he left an indelible mark on our state. His initiative in the areas of welfare reform, school choice and tax reform became models for other states as well as the federal government. Thompson’s appointment to lead the massive U.S. Department of Health and Social Services under George W. Bush propelled him onto the national stage. The first-hand experience he gained as Governor, in administering federal programs such as Medicaid, gave him valuable insight into how these programs could be made more effective and efficient. More recently his success as a private businessman rounds out his resume and probably makes Governor Thompson the most qualified person to ever run for the U.S. Senate. Republican Party Chairman Reince Priebus As chairman of the Republican Party Reince Priebus played a key leadership role that helped set the stage for Wisconsin’s rise to national prominence. He inherited a massive deficit from his predecessor and quickly turned around the Party’s fortunes, setting fundraising records in the process. His efforts have put the Republican Party in a position to win the White House and the U.S. Senate and lead the nation for the next four years. The common trait of these uncommon leaders is that they have the political courage to pursue policy based on fundamental principles. In a refreshing change from the norm they make decisions based on core beliefs rather than political expediency. In short, they stand for something. Voters, weary 2012 of politicians who are long on rhetoric but can’t or won’t deliver Honoring Manufacturing on promises, are responding to Awards Wisconsin’s new leaders. While they Excellence in Wisconsin may not always agree with the policy choices, voters do appreciate the fact that these new leaders stand for something and are willing to act on their convictions. 2012 nomination forms There is much at stake in the available online. November elections. Voters have a clear choice as to the future of our country. Fortunately, Wisconsin www.wimoty.com is leading the way with leaders that have concrete solutions to our nation’s problems, many of which have been successfully tested right here in our state. With Wisconsin The annual awards competition leading the nation there is hope for is sponsored by: the future. BV Legislative Voting Record We are pleased to present the 2011-12 Legislative Voting record, WMC’s biennial business issue scorecard for the Wisconsin state Legislature. This report is designed to help the business community see how individual The full report is available on WMC’s members of the legislature voted on key issues affecting the business climate in Wisconsin. website, www. The 2011-12 legislative session was historic in many ways. The upward spiral of spending and taxes was reversed; wmc.org. Click on the state’s long-term structural deficit was eliminated; a solid foundation for responsible budgeting in the future Government Issues was established and perhaps, most significantly, efforts to improve the state’s business climate took a quantum & Policy at the top leap forward. The legislature adopted sweeping legal reforms, comprehensive regulatory reforms and targeted of the homepage, business tax cuts that will help put Wisconsin on a path to robust economic growth and job creation in the years then click ahead. Legislative Voting Records. The WMC team worked on 159 separate pieces of legislation during the session. Many of these bills originated as recommendations from WMC members who serve on our various policy committees and were developed by our in-house team of attorneys and policy experts.

Senate Carpenter (D-3) 26% Grothman (R-20) 100% Lassa (D-24) 29% Taylor (D-4) 17% Coggs (D-6) 32% Hansen (D-30) 35% Lazich (R-28) 100% Vinehout (D-31) 30% Cowles (R-2) 96% Harsdorf (R-10) 100% Leibham (R-9) 100% Vukmir (R-5) 96% Cullen (D-15) 27% Holperin (D-12) 39 % Miller (D-16) 22% Wanggaard (R-21) 100% Darling (R-8) 100% Jauch (D-25) 22% Moulton (R-23) 100% Wirch (D-22) 23% Ellis (R-19) 100% Kedzie (R-11) 100% Olsen (R-14) 100% Zipperer (R-33) 96% Erpenbach (D-27) 27% King (D-18) 45% Risser (D-26) 17% Fitzgerald (R-13) 100% Larson (D-7) 22% Schultz (R-17) 88% Galloway (R-29) 96% Lasee (R-1) 100% Shilling (D-32) 50%

Assembly August (R-32) 96% Kessler (D-12) 20% Petrowski (R-86) 100% Vos (R-63) 100% Ballweg (R-41) 100% Kestell (R-27) 100% Petryk (R-93) 100% Vruwink (D-70) 41% Barca (D-64) 30% Kleefisch (R-38) 100% Pocan (D-78) 14% Weininger (R-4) 100% Berceau (D-76) 4% Klenke (R-88) 100% Pope-Roberts (D-79) 16% Williams (R-87) 100% Bernard-Schaber (D-57) 25% Knilans (R-44) 100% Pridemore (R-99) 96% Wynn (R-43) 96% Bernier (R-68) 100% Knodl (R-24) 96% Radcliffe (D-92) 42% Young (D-16) 30% Bewley (D-74) 22% Knudson (R-30) 100% Richards (D-19) 21% Zimarripa (D-8) 19% Bies (R-1) 100% Kooyenga (R-14) 100% Ringhand (D-80) 19% Zepnick (D-9) 26% Billings (D-95) 40% Kramer (R-97) 96% Ripp (R-47) 100 % Ziegelbauer (I-25) 92% Brooks (R-50) 100% Krug (R-72) 100% Rivard (R-75) 100% Clark (D-42) 23% Krusick (D-7) 41% Roys (D-81) 15% WMC does not track Coggs (D-10) 22% Kuglitsch (R-84) 100% Seidel (D-85) 26% Congressional voting Craig (R-83) 91% Larson (R-67) 96% Severson (R-28) 96% records but the U.S. Cullen (D-13) 33% LeMahieu (R-59) 100% Sinicki (D-20) 32% Chamber does. Here is Danou (D-91) 29% Litjens (R-56) 100% Spanbauer (R-53) 93% the Wisconsin delegation’s Doyle (D-94) 35% Loudenbeck (R-45) 100% Staskunas (D-15) 40% voting record from the Endsley (R-26) 100% Marklein (R-51) 100% Steinbrink (D-65) 28% 2011 Session of the 112th Farrow (R-98) 100% Mason (D-62) 24% Steineke (R-5) 100% Congress. Fields (D-11) 17% Meyer (R-34) 100% Stone (R-82) 100% Fitzgerald (R-39) 100% Milroy (D-73) 28% Strachota (R-58) 100% Ryan (R) – 100% Grigsby (D-18) 6% Molepske (D-71) 43% Stroebel (R-60) 91% Baldwin (D) – 13% Hebl (D-46) 18% Mursau (R-36) 100% Suder (R-69) 100% Kind (D) – 31% Hintz (D-54) 29% Murtha (R-29) 100% Tauchen (R-6) 100% Moore (D) – 13% Honadel (R-21) 100% Nass (R-31) 96% Taylor (D-48) 29% Sensenbrenner (R) – 94% Hulsey (D-77) 22% Nerison (R-96) 96% Thiesfeldt (R-52) 100% Petri (R) – 94% Jacque (R-2) 96% Nygren (R-89) 100% Tiffany (R-35) 100% Duffy (R) – 100% Jorgensen (D-37) 33% Ott, A. (R-3) 100% Toles (D-17) 15% Ribble (R) – 100% Kapenga (R-33) 96% Ott, J. (R-23) 96% Tranel (R-49) 96% Kaufert (R-55) 96% Pasch (D-22) 19% Turner (D-61) 26% For more information visit Kerkman (R-66) 100% Petersen (R-40) 96% VanRoy (R-90) 100% www.uschamber.com

6 Working for Wisconsin Award Winners Senate Rob Cowles-Green Bay Mary Lazich-New Berlin Alberta Darling-River Hills Joe Leibham-Sheboygan Michael Ellis-Neenah Terry Moulton-Chippewa Falls Scott Fitzgerald-Juneau Luther Olsen-Ripon Pam Galloway-Wausau Dale Schultz-Richland Center Glenn Grothman-West Bend -Wauwatosa Sheila Harsdorf-River Falls Van Wanggaard-Racine Neal Kedzie-Elkhorn Rich Zipperer-Pewaukee Frank Lasee-DePere

Assembly -Lake Geneva Jeff Mursau-Crivitz Joan Ballweg-Markesan John Murtha-Baldwin Kathy Bernier-Chippewa Falls Stephen Nass-Whitewater Garey Bies-Sister Bay Lee Nerison-Westby Ed Brooks-Reedsburg John Nygren-Marinette David Craig-Big Bend Al Ott-Forest Junction Mike Endsley-Sheboygan Jim Ott-Mequon Paul Farrow-Pewaukee Kevin Petersen-Waupaca Jeff Fitzgerald-Horicon Jerry Petrowski-Marathon -South -Eleva Andre Jacque-Bellevue Don Pridemore-Hartford -Delafield Keith Ripp-Lodi Dean Kaufert-Neenah -Rice Lake -Powers Lake Erik Severson-Star Prairie Steve Kestell-Elkhart Lake Dick Spanbauer-Oshkosh -Oconomowoc -Kaukauna John Klenke-Green Bay Jeff Stone-Greendale Joe Knilans-Janesville Pat Strachota-West Bend -Germantown Duey Stroebel-Saukville Dean Knudson-Hudson Scott Suder-Abbotsford Dale Kooyenga-Brookfield -Bonduel Bill Kramer-Waukesha -Fond du Lac -Wisconsin Rapids Tom Tiffany-Hazelhurst -New Berlin -Cuba City Tom Larson-Colfax Karl Van Roy-Green Bay Dan LeMahieu-Cascade -Burlington Michelle Litjens-Oshkosh Chad Weininger-Green Bay -Clinton Mary Williams-Medford Howard Marklein-Spring Green Evan Wynn-Whitewater Dan Meyer-Eagle River Bob Ziegelbauer-Manitowoc WORKFORCEChanging the Dialogue Selling Manufacturing One Conversation at a Time By Jim Morgan, WMC Foundation President

careers and companies mean to “To help close the skills gap, companies Wisconsin. And before the financial, across the state are adopting strategies healthcare, energy, legal or transportation to get high school students interested in industries get upset, I can make a pretty manufacturing-related jobs.” - La Crosse Tribune strong argument that the citizenry is at least aware that you exist and values what you do. But manufacturing? Progress! Not a clue. And now, October has been declared In addressing the workforce paradox, “Manufacturing Month” and it will be WMC and the WMC Foundation set another opportunity to educate. That will out a few goals 12 months ago: be followed by WMC Foundation-led • regional sessions offering solutions and hy do parents speak with Raise the awareness of manufacturing best practices to help local communities great pride about their 4-year • Improve the image of manufacturing continue to ensure they are providing university-boundW children, but when • Challenge people’s perceptions of quality education and meeting the needs discussing their technical college student manufacturing of the workforce. The journey continues. often precede the comment with “he’s • Celebrate the value of manufacturing In the end, competitiveness is what just attending tech school”? A quick summary of recent articles provides business with an advantage. Why do we only care about K-12 system covering WMC events and presentations Wisconsin, Germany, Green Bay, measurements that revolve around 4-year indicates we are making progress: Illinois, China, Prairie du Chien – institutions? everyone has a workforce problem. More “Manufacturing is not a dirty word – nor than any other issue, the country/state/ Why is there outrage if an advanced is it an industry for the uneducated.” community that can offer workforce placement course is cut, but silence as - Daily Tribune, Wisconsin Rapids many career and technical education solutions will win. My money is on departments die on the vine? “Many parents saw factory jobs Wisconsin. BV disappearing from Rock County a few Follow Jim on Twitter @JimMorgan1960 Why do so many consider a job in years ago and became convinced that manufacturing not as “prestigious” as a manufacturing as a career path is dead. job in a cubicle? On this Labor Day weekend, however, Why aren’t we as concerned about we’re here to tell you that notion is wrong.” - The lifetime employment as we are about Janesville Gazette lifetime education? Why do we think the expectations “Last year, 47 hourly of students entering the Wisconsin workers at Strohwig Technical College System are lower than Industries (each) took home more than the University of Wisconsin System? $100,000.” - The Why do so many value manufacturing Reporter, Fond du Lac jobs… for someone else’s children? “People don’t understand I am guessing those questions hit a nerve we are still employing for anyone following the workforce 430,000 in manufacturing paradox in Wisconsin. in this state.” - Green Bay Press-Gazette Employers, community leaders and educators gathered at WMC this What has amazed me more than summer to discuss the workforce paradox. anything else during the past 12 months of preaching the value of manufacturing and manufacturing jobs is the complete lack of understanding of what these

8 Celebrate Manufacturing Month in October

Celebrate Manufacturing Month in October Visit www.wimanufacturingmonth.org

Find resources available to manufacturers, community leaders and elected officials • Dates and locations of many tours and events happening throughout the month • Links to best practices from employers around the state • Top 10 ways to get involved • Toolkits for hosting tours • Links to Youth Apprenticeship programs Sign up today for the Manufacturing Month weekly e-newsletter; email Jim Morgan at [email protected] and place the word Newsletter in the subject line. Time to Step Up to the Job-Skill Challenge By Todd A. Berry, President, Wisconsin Taxpayers Alliance

eporters, business leaders, and So, yes, we have a skill gap, and we • Providing families, journalists, researchers – almost everyone need to make big changes fast in public and educators with on-the-floor Reverywhere, both here and abroad – education and training, cultural attitudes, knowledge of the advanced and seem surprised and understandably and business planning. But that is innovative nature of manufacturing troubled by the jobs-and-skills not enough. We must institutionalize and production; mismatch. If there is a “hot” topic in processes that anticipate and • Adjusting teacher, family, and the public arena, this is it: Employers accommodate rapid, unceasing change – media preoccupation with four-year complain they are unable to find and not just respond to it. degrees; skilled workers despite stubbornly high Unfortunately, prospects are not bright • Redesigning baccalaureate programs unemployment rates. for quick and wholesale change in state (and the institutional structures There is little need to review the problem government. The legislative branch that go with them) to provide or recommended solutions; they’re is near dysfunction. The executive interdisciplinary alternatives to ubiquitous. Consulting firms and think branch has no cabinet-level appointee narrow majors by combining tanks have been cranking out reports overseeing all education and training, essential liberal arts education with on the topic for years. Closer to home, and the state superintendent has a bully technical or business competencies; former Bucyrus Erie CEO Tim Sullivan pulpit but little more. • Building new school-to-work recently shared 125 pages of his thoughts The education sector is balkanized and pathways that include, among others, with the governor, and WMC staff have inherently conservative. K-12 education student “coop” learning, senior- been documenting the challenge. continues to operate on a century-old year job experiences, and company Consensus on causes is broad, industrial model, and universities are mentoring; and disagreement coming only from a few driven by siloed academic departments • Creating and making permanent on the left who see higher wages as a rooted in medieval Europe. The focus private-private and private-public panacea. Factors usually cited include of technical colleges has been diffused, consortia that assess and anticipate demographic shifts, constant technical some argue, by remediation, adult technological change and predict progress, cultural and attitudinal biases, enrichment, “mission creep,” and college future skill needs. poor or outdated market information, transfer programs. More profound reforms could also be and inertia in both education and Like it or not, Wisconsin employers pursued, including widespread adoption government. cannot afford to wait for government of substantive apprenticeship alternatives What strikes me most about the skill and education. Working individually, to traditional in-class education; in-plant gap is that few think about it as a in industrial clusters, through trade charter schools; or on-site, employer- permanent phenomenon. Yet, since associations, and collaboratively with sponsored certificate and degree the industrial age began, we have lived the other sectors, they are going to have programs. through economic cycles of jobs gained to step up and drive the reform needed, More far-reaching would be rethinking and lost. Add technological change, if we are to put in place processes that the organization and financing of economic competition, the rigidity of anticipate and address the job-skill postsecondary education. Imagine, most societal institutions – and a dash paradox. for example, some technical college of human inertia – and you have a recipe Profitability, growth, and shareholder “districts” funded by payroll taxes or fees for recurring job-skill mismatch and return depend on attracting and with employers ultimately responsible joblessness. maintaining a skilled workforce, and for program authorization and resource The only thing new and different about that means business has to drive change. allocation. today is the pace and intensity of change Suggesting it is necessary but not Needless to say, it’s time for everyone to and competition. Both are accelerating sufficient. Company time, money, and open their minds and get to work. BV and global – and far less forgiving. effort are going to have to be spent in a Moore’s law first advanced almost number of areas, including: Todd A. Berry, President, Wisconsin 50 years ago predicted that transistor • Correcting rampant societal performance would double every two Taxpayers Alliance. misperception of manufacturing (and He can be reached at years, a prediction that has proved true the private sector in general); (608) 241-9789 and applies to other forms of technology.

10

Employers to Continue Healthcare Reform Implementation as Usual By John Barlament & Alexis Backs, Quarles & Brady LLP

n June 29, 2012, in a 5-4 decision, • issue a summary of benefits rules for fully insured health plans. the U.S. Supreme Court upheld and coverage (SBC), usually in Employers should also start considering Othe healthcare reform law’s “individual connection with this year’s open the other ACA provisions taking effect mandate,” which requires almost all enrollment; in 2013 and later, such as the “pay or U.S. citizens to have health insurance • address medical loss ratio (MLR) play” rules. The ACA requires certain by January 1, 2014 or pay a penalty. issues; and large employers to provide health plan The main opinion was written by Chief coverage to their employees or else pay • comply with new Form W-2 Justice John Roberts, who began by a penalty tax to the federal government. reporting requirements for the 2012 stating that the individual mandate There are several requirements that plan year (i.e., W-2s distributed in exceeds Congress’s power to regulate must be satisfied by the employer in January 2013). commerce under the Commerce Clause. order to ensure that the penalty tax is While four other Justices agreed with Provisions of the ACA already in avoided. Now is the time to consider that conclusion, which would constitute operation (such as coverage for adult these impending requirements and begin a majority, a different majority upheld dependents up to age 26, the prohibition developing a strategy for compliance. the individual mandate based on an on rescissions, limits on pre-existing condition exclusions and prohibition For a complete overview of the ACA’s independent ground - the government’s requirements for employers and their backup argument - that is, the mandate on lifetime limits for essential benefits) remain in effect. health plans (whether self-funded or is within the taxing power of Congress. fully-insured), including the effective No matter how the Patient Protection The SBC requirement is considered date of each provision, please visit www. and Affordable Care Act’s (ACA) by many employers to be one of the quarles.com/health_care_reform_ individual mandate passed constitutional most administratively burdensome summary_2012 and click on the muster, the end result for employers is requirements imposed by the ACA. Healthcare Reform Summary PDF at the same. The Supreme Court’s decision Final government regulations require the top of the webpage. BV employers and group health plans provides clarity for employers and their John Barlament is a to provide a standardized, easy-to- group health plans. Because the Court Partner with Quarles found the individual mandate to be understand SBC along with a uniform & Brady LLP. He can constitutional, the entire ACA stands glossary of coverage terms to all plan be reached at john. with respect to employers and their participants. [email protected] health plans. As a result, employers (or The W-2 requirement under the ACA or (414) 277-5727. other plan sponsors) should expect ACA provides that the value of the applicable implementation efforts to continue as employer-sponsored coverage be Alexis Backs is an usual. reported on employees’ Forms W-2. This Associate with Quarles & There are a number of near-term ACA is a reporting requirement only; it does Brady LLP. She can be requirements that employers must now not affect employees’ tax liability. reached at alexis.backs@ focus on, including the requirements to: Employers should also monitor future quarles.com or (312) 715-5145. • provide coverage for additional government guidance on a number of preventive services (effective for as-yet-unanswered questions regarding plan years beginning on or after certain provisions of the ACA, including August 1, 2012); quality of care reporting, automatic enrollment and new nondiscrimination

12 TAXESLooming Federal Tax Increases By Jason Culotta, WMC Director of Tax & Transportation Policy

Estate Tax (Death Tax) determines tax liability under a second Currently, only estates worth more than tax system; the taxpayer pays the higher $5 million are subject to a 35 percent of the two amounts. Not adjusted for tax. After January 1, estates valued at $1 inflation, the AMT is routinely limited million or more will be subject to the tax by Congress to prevent the tax from with the rate increasing to 55 percent. applying to a broader group of taxpayers. The tax disproportionately affects family Without retroactive action by Congress, businesses that pass ownership through more than 30 million taxpayers will be the generations. affected by this provision for the 2012 tax year. Investment Income Taxes Corporate Income Tax Taxes on capital gains and dividends t the end of this year, a number of will increase from the current 15 percent The current federal rate is 35 percent. federal tax changes will lead to a top rate to 23.8 percent and 43.3 Since Japan lowered its rate in April, muchA greater tax burden for American percent, respectively. These taxes are the now has the highest taxpayers and businesses. assessed on income that has already been corporate income tax rate in the industrialized world. Some businesses Tax reductions and credits adopted subject to the income tax. The negative implications for investors, including subject to this tax have moved operations under President George W. Bush are abroad to take advantage of lower rates. expiring in December. Other new taxes retirees, are significant. The collective impact of these and created under the Affordable Care Act Business Tax Incentives take effect in January. other tax increases will be around $500 Provisions like the Section 179 expense billion for 2013 alone. The economy How the federal government responds deduction, which benefits will struggle much more to this crisis depends on the outcome small business, and if Congress and the of the November elections. If President bonus depreciation The United States President fail to take Obama is re-elected, look to see will end. The now has the highest action. congressional action during the lame research and Our national duck session of Congress before January, development corporate income tax rate in leaders have the as the number of Senate Democrats is tax credit already the industrialized world. difficult task of expected to decline in the new Congress. expired in 2011. maintaining a reasonable If Governor Romney prevails, expect Many Wisconsin firms tax structure that encourages growth congressional Republicans to enact tax benefit from these provisions which will while addressing the trillion-dollar relief early in 2013. no longer be available. annual budget deficits at the federal Absent federal action, the major level. You can see that our federal upcoming tax changes include: policymakers have their work cut out for The AMT was established to prevent them. BV Individual Income Tax wealthy taxpayers from avoiding Though all tax brackets will see increases, taxation under the normal tax structure. Follow Jason on Twitter @JGCulotta the top rate for those earning at least The original “Buffet Rule,” if you will, $200,000 or married couples earning Jason Culotta at least $250,000 will increase to works with 40.5 percent from 35 percent. Many WMC’s Tax businesses are organized as pass-through Committee on entities, meaning the tax liability is issues relating passed onto individual shareholders to tax policy and how it will rather than the corporation. In other affect Wisconsin words, if a shareholder of a company businesses. earns more than $200,000 from the company, the shareholder is responsible for paying the 40.5 percent tax rate.

Wisconsin Business Voice 13 ENERGY Attend WMC’s Upcoming Program Decision 2012: EPA Trainwreck October 24, 2012 • 7:00 am, $35/person A Collision Course for Visit www.wmc.org or call (608) 258-3400 for Higher Energy Prices more information and to register. By Scott Manley, WMC Director of Environmental & Energy Policy

n 2008, presidential candidate Cross State Air Pollution Rule (CSAPR). This proposal would promised to impose stringent air pollution regulations on coal-fired power Ibankrupt the coal industry, stating plants in 28 states, including Wisconsin. The rule is projected “if somebody wants to build a coal- to cost $120 billion by the year 2015. WMC and a coalition of powered plant, they can. It’s just that national business groups successfully challenged this rule, and it it will bankrupt them because they’re was recently overturned by a federal court. However, the EPA is going to be charged a huge sum for likely to write a replacement rule. all that greenhouse gas that’s being Utility MACT. This rule establishes first-ever maximum emitted.” achievable control technology (MACT) standards, regulating Candidate Obama also stated that mercury emissions from coal-fired power plants, and is expected “electricity rates would necessarily to cost up to $358 billion. The EPA estimates the rule will provide skyrocket” under his cap-and-trade $500,000 and $6 million in public health benefits each year – far global warming legislation because power plants would pay a less than the cost of the rule. A recent study suggested that the considerable amount to comply with the emission rationing plan. CSAPR and Utility MACT rule together would increase electric Although Congress ultimately rejected his cap-and-trade rates in Wisconsin by 21.7 percent by 2016. legislation, President Obama appears intent on keeping his Boiler MACT. Industrial boilers burning coal are the target campaign promise to bankrupt coal through the imposition of of this rule, which is projected to cost more than $100 billion, costly regulations from his Environmental Protection Agency and result in 800,000 lost manufacturing jobs nationwide. In (EPA). Wisconsin, the rule is expected to cost manufacturers $680 The EPA recently embarked on an aggressive crusade to million, result in the potential closure of 11 paper mills, and the implement new rules targeting coal-fired power plants, and loss of 7,500 papermaking jobs. manufacturers with coal-fired boilers. These oppressive regulations Utility Greenhouse Gas Standards. The EPA has proposed New will dramatically increase the cost of energy, diminish the Source Performance Standards for power plants that set carbon reliability of our power grid, weaken our manufacturing sector and dioxide limits sufficiently low that it would be virtually impossible threaten the very existence of certain manufacturing facilities. to construct a coal fired power plant in the future. With nearly Known as the “EPA Train Wreck,” the rash of new rules 500 years of mineable coal in the United States, the decision to cut ourselves off from this is a frontal assault on the use of coal as an abundant Our state uses coal and affordable form of energy. The cascading cost abundant and affordable source of energy impacts of the EPA rules are likely to render coal to generate roughly 65 will drive up costs and make us less economically infeasible, and in some instances, percent of our electricity, so competitive. may prohibit the construction of coal-fired power Everyone, including businesses, wants plants in the future. the high cost of the Obama clean air. The good news is that our Regulating our way to higher energy prices will Administration’s anti-coal air is much healthier today than it was spell trouble for our nation’s manufacturing sector, campaign will hit our state even ten years ago. Nationally, the EPA reports that air pollution has been reduced but the EPA rules will have a disproportionately especially hard. painful impact here in Wisconsin. Our state uses coal to by nearly 70 percent since 1970. Here in generate roughly 65 percent of our electricity, so the high cost of Wisconsin, historic pollution reductions have led the Obama Administration’s anti-coal campaign will hit our state to removal of the Milwaukee area from the ozone nonattainment especially hard. designation. Wisconsin also has the second most manufacturing intensive Given the tremendous progress already made toward cleaner air, economy per capita in the United States. So we are home to a the obvious question is why is the EPA now moving forward much higher concentration of the types of businesses that are with such costly and economically destructive air pollution rules? targeted directly by the regulations, or will pay more indirectly The answer lies in the President’s failure to enact cap-and-trade through higher electric rates. legislation – he is instead waging a war against coal and other fossil fuels through EPA regulations. We as consumers will How much will the “Train Wreck” rules actually cost? A number ultimately pay the price. BV of studies have attempted to estimate the cost of these rules. Follow Scott on Twitter @ManleyWMC Following is a summary of those cost estimates.

14 ENERGY Launching Youth with Disabilities into the Workplace ailored Label Products (TLP) what a hard working kid he is, and how Patrick was good for business. co-owner Todd Bence looks he really wants to make a difference in That’s a message Patrick and TLP want forT passionate, hard-working, and people’s lives. Then he said, ‘And by the to share with others. Patrick is a member motivated people to work at his way, he has Down Syndrome.’ ” of the Wisconsin Board for People with 80-person manufacturing operation in After watching Patrick at work, Todd Developmental Disabilities (BPDD), Menomonee Falls. Seven years ago, he didn’t hesitate. He approached Patrick’s a statewide organization that promotes hired Patrick Young when Patrick was dad about offering Patrick a part-time competitive employment for people with 16 years old. Today, Todd considers job. Patrick submitted his resume and significant disabilities. Patrick the “absolute spirit” of the went in for a formal interview, then company. “Integrated employment for people completed OSHA training as required with disabilities is a good investment “He’s been a mainstay, increased for his position. TLP adapted the for companies because it will create productivity, and has been a perfect fit training by showing Patrick the tasks more local jobs for people who will for our company,” says Todd, who met instead of just having him read a manual. contribute to the Patrick the same way many employers They also provided formal job training community,” Patrick says. meet good recruits: by networking. for several weeks so that Patrick could “Policymakers should When Patrick was in high school, he learn – and master – the tasks at his new understand that hiring and his father were part of a church job. people with disabilities mission group that included Todd As his sophomore year of high school is investing in our and his son. Todd’s son was instantly began, Patrick worked three afternoons (Wisconsin) communities impressed by Patrick’s energy, work ethic, a week after school, starting at $3 above and will help local and willingness to support and nurture the minimum wage. Seven years later, businesses because people others. “My son said, ‘Dad, you should he works four days a week and has had with disabilities have meet this kid. He’s absolutely amazing,” five wage increases. He also has learned good work skills. My job Bence recalls. “He told me story after others’ jobs, and is a frequent substitute at TLP is an example story about how compassionate he was, in other units at TLP. of how a company can “What I love most about my job is benefit in many ways working with all the different people in when we are empowered the company and all the friends I have to work.” BV Wisconsin BPDD is spearheading made at the company social events and a statewide project, “Let’s Get to things like our United Way campaign,” Work,” that focuses on getting youth Patrick says. “I am proud that I hold with disabilities into paid employment the record for making the most boxes in while they are still in high school. the company for a 3 three hour shift - I made 800 boxes.” Participating school districts include: Oconomowoc, Manitowoc, Grafton, Patrick’s co-workers say he typically Holmen, Kewaunee County schools, performs at twice the rate of his co- Rhinelander, West Allis, Stoughton, workers, and many seasoned employees have tried to beat his record. Patrick’s and New Auburn. supervisor Felicia Tyler says, “Patrick’s If your business wants more eye for detail and perfection in box information on hiring youth or young making allows our press to have the necessary material for maximum output. adults with disabilities, contact Let’s His attendance is an inspiration to those Get to Work Project Coordinator who work with him.” Todd agrees: hiring Jennifer Neugart at (608) 261-7528 or [email protected] or visit the Let’s Get to Work website www.letsgettoworkwi.org.

16 Take Your Legislator to Work ctober is National Disability During the campaign, more than 40 Patrick’s representative – Dan Knodl Employment Awareness Month. Wisconsin legislators visited constituents of Germantown– visited him at TLP OTo recognize and promote the with disabilities who have competitive- to learn more about his job. Patrick remarkable contributions people with wage jobs in the community. Through not only showcased his skills, but also disabilities make in the workplace, the visits, legislators witnessed first-hand discussed how his job allows him to the Wisconsin Board for People with the benefits of integrated work, not be independent and contribute to Developmental Disabilities launched just for people with disabilities, but for government programs, rather than the Take Your Legislator to Work employers, as well. Culver’s, Wal-Mart, relying on them for assistance. In his Campaign in October 2011. Walgreens, and many small businesses Legislative e-Update, Rep. Knodl across Wisconsin participated in last highlighted his visit with Patrick year’s campaign. and mentioned that “people with Patrick Young of disabilities are valuable employees with Tailored Label Products essential skills who enhance the work in Menomonee Falls environment for everyone.” participated in one of People with disabilities are significant those 40-plus visits. contributors to businesses all across the Patrick fulfills an state. At the same time, there are also important role at TLP, many people with disabilities who aren’t where Nicole Richard, working for competitive wages but want Human Resource to. Manager, said, “‘Passion This October, BPDD will continue its for Innovation’ is our Take Your Legislator to Work effort to motto and Patrick educate policymakers and the general certainly personifies that. public about the importance of paid He is passionate about the employment for people with disabilities. work he does, he is eager If your business wants to get involved, to take on new tasks, and contact Joshua Ryf at (608) 261-7829 or he motivates those around [email protected] or visit him.” www.wi-bpdd.org. BV

Top: TLP Co-owner Todd Bence, left, with Patrick and Patricks’ supervisor, Felicia Tyler. Left: Patrick works on boxes at Tailored Label Products in Menomonee Falls. Center and Right: Patrick with Representative Dan Knodl (R-Germantown) during Take Your Legislator to Work Day.

Wisconsin Business Voice 17 HEALTHCAR

18 Getting a Grip on HealthCare By Mark Crawford

ore than 2,000 pages make performance – if they delivery better care up the Affordable Care Act at a lower cost they will earn more money. M(ACA), a highly complex bill that has A key strategy within the ACO is the HR departments across the country concept of the patient-centered “medical struggling to understand its full home.” This typically consists of a team ramifications. The ACA has put into of clinicians (not just the primary care motion on a national level some aspects physician) that plans and coordinates the of what Wisconsin began experimenting routine care of patients, especially those with years ago. That’s when in-state with chronic illnesses. providers and consumers realized the “The Pioneer ACO is the first of these present fee-for-service system was structures recognized by ,” says unsustainable and started working John Toussaint, MD and President/CEO HEALTHCARtogether to improve quality of care and of ThedaCare in Appleton. “ThedaCare reduce costs, with fair compensation for and Bellin are participating in this ACO. high-quality patient outcomes. It is a direct contract with the Center for The goal of payment reform is to transition Medicare Innovation from a model that pays providers for in Washington volume to a model that pays for improved D.C. whereby quality of care. The current fee-for- all the Medicare “The most successful employers service model is simply too expensive. beneficiaries cared will be targeting obesity, which “Healthcare costs should be about 40-50 for by both these percent less than what they are today,” says organizations are is now more of a cost issue to the James Riordan, president and CEO of pooled together as a average employer than smoking.” Wisconsin Physicians Service Insurance population. Part of Corporation in Madison. the overall payment Payment reform can be in the form of to these provider organizations is based accountable care organizations (ACOs), on improving the cost and quality of medical homes, bundled payments, services year over year.” pay for performance, and other unique The ACO concept is still being developed arrangements. All these approaches share – there is no guidebook to follow. the same goal of improving care, reducing “In Wisconsin we are especially well- costs, and providing fair compensation to positioned to implement payment reform providers. because we have several groups, such as Two of the most promising reform Bellin and ThedaCare in northeastern models outlined in the ACA are ACOs Wisconsin and Dean and St. Mary’s in and medical homes. ACOs can have the south-central region, that have been multiple structures, such as a group of essentially functioning as ACOs for doctors, doctors and hospitals, hospitals several years,” says Christopher Queram, and insurers, doctors and community president and CEO of the Wisconsin clinics, etc. These providers manage the Collaborative for Healthcare Quality care of a specific population of patients by (WCHQ) in Middleton. “They have teaming up to deliver better coordinated been proactive in aligning their incentives patient care at lower costs. They also agree to provide the highest possible care at to take the financial risk for improving lowest possible cost.”

Wisconsin Business Voice 19 Payment Reform in Action “The most successful employers will be targeting obesity, The idea behind payment reform is the creation of better which is now more of a cost issue to the average employer incentives that motivate healthcare providers to deliver the best than smoking,” says Riordan. “It’s difficult to imagine making quality in the most cost-effective manner, as well as incentives a favorable, long-term impact on employer healthcare costs for consumers to choose cost-effective, high-quality care. without moving the needle on employee obesity. Even if ACOs and medical homes are models designed to incent this employers are unwilling to get into the lives of their employees, kind of care. they can change things like cafeteria offerings, provide physical fitness options, or reward employees who are within normal The toughest part of payment reform for employers will be weight ranges.” redesigning benefit plans and educating employees about the necessity of taking personal responsibility for purchasing Some larger employers have made huge reductions in their healthcare services. “According to a recent survey most healthcare costs by implementing on-site clinics. These employees are on ‘autopilot’ when it comes to health care, typically focus on primary care and fit the model of the largely choosing the same plans and providers year over year,” medical home. “One example is Serigraph in West Bend,” says says Karen Timberlake, director of University of Wisconsin’s Riordan. “The consumer-oriented model that chairman John Population Health Institute in Madison. Torinus has implemented started well before healthcare reform got moving and is highly effective.” From an insurance perspective, the largest difficulty is that systems have been developed and refined for the current fee- “Our annual per-employee cost of healthcare is $9,000, which for-service environment. Many payment reform models are is about 40 percent below the national average of $15,000 per only in their pilot stages; as providers and insurers discover year,” says Torinus, the former CEO and current Chairman of which models deliver the greatest value they will become the Board for Serigraph Inc. The benchmark for best practices, automated and more widely available. he notes, is $7,500-$9,000 per year. Payment reform runs along a continuum, from efforts that are Torinus indicates the biggest savings come from three reform still based on fee-for-service reimbursement, such as “pay-for- strategies: performance” incentives, to paying one, risk-adjusted rate for • Consumer-driven health plans that reduce the cost of all the care of an entire population of patients. health care by 20-30 percent – when employees pay more The Wisconsin Health Information Organization (WHIO), they are more likely to take care of themselves a group of healthcare providers, health insurers and employer • Value-based purchasing of healthcare services based on representatives, assembled in 2010 to design a set of payment results, price and service – the best vendors have already reform projects. driven out waste through lean initiatives and quality “The goal of this effort, now known as the Partnership for improvements Healthcare Payment Reform, is to move toward value-based • On-site primary care facilities – “This is the best way to reimbursement by testing alternative methods of payments,” manage the 80/20 rule,” says Torinus. “Eighty percent of says Timberlake. “This work is also designed to involve several healthcare cost is spent on 20 percent of the population, commercial insurers in a common reimbursement strategy, to which usually has multiple chronic conditions.” increase the clarity of signals sent to provider organizations.” The greatest results – for companies with a sufficient number Two sets of pilot projects have been established: a bundled of employees to be self-insured – will be realized through a payment for total knee replacement and a shared savings highly capable medical partner that works with them to share project for patients with diabetes. The bundled payment project risk and accountability. involves a flat-rate payment for all the care for commercially “A company should carefully examine any prospective partner’s insured adults receiving a total knee replacement; the diabetes ability to deliver coordinated care, electronic medical records, project involves a set of typical services for patients with and methods that measure quality,” indicates Jeff Thompson, diabetes and certain common co-morbid conditions (co- MD and CEO for Gundersen Lutheran Health System in morbidity refers to a disease or other pathological process La Crosse. “If the partner has a well-run, integrated system and that occurs simultaneously with another.) Both projects are establishes an on-site clinic, a business can save 25 percent or designed to be implemented in fully insured or self-insured more on healthcare costs.” environments and include clear quality metrics that will be The healthcare field is rapidly evolving and, with the passage of tracked and publicly reported. the ACA, has never been more complex. It is therefore critical for companies to innovate and be proactive to stay ahead of Establishing Best Practices the curve. Serigraph, for example, will soon make health-risk The first step is getting employees off “autopilot” so they can assessments mandatory for employees and their spouses. “We take more active roles in managing their health, especially also plan to develop individual three-year health plans signed chronic diseases. This can include workplace wellness by the employees and the provider,” says Torinus. “This enables programs, full access to primary care and community health us to also use health-risk assessments as management tools.” improvements efforts like bike paths. 20 Parting Thoughts Data as far back as 2004 is available on the WCHQ website ACOs have the broad goal of managing entire populations (www.wchq), but is not consumer-friendly, notes Queram. within an integrated system of hospitals and physicians. “Another website, www.wisconsinhealthreports.org, repackages Riordan cautions that many providers are looking at forming this data into narrative stories, which are easier to understand ACOs, but it’s not an easy process. “Success involves a and can lead interested readers to the main database.” tremendous commitment of resources from both personnel and Torinus emphasizes that companies must develop new business technology,” says Riordan. “I wouldn’t look for an immediate models that include self-insurance and on-site primary care. drop in costs, but more of a moderation of the existing “A mid-size company that has done very little regarding cost healthcare trend. Over time a moderated trend can compound controls will need about three years to complete a set of at least into significant savings.” a dozen best practices,” he says. “The key to controlling healthcare costs is delivering the Wisconsin is consistently ranked as one of the top five states in appropriate care, at the right time and place,” says Eric the country for high-quality care. Borgerding, Executive Vice President for the Wisconsin “This is because we believe in staying ahead of the curve,” says Hospital Association in Madison. “This often means keeping Borgerding. “We knew payment reform was on the way before employees out of costly healthcare settings. To accomplish it was proposed by the Obama Administration. Healthcare this, business leaders must have access to good data to make costs are a key part of total labor cost for many businesses. informed decisions from sources like WHIO and WCHQ.” A state that does a good job of moderating healthcare costs, Queram agrees that good data is essential for building sound and focusing on providing better value for healthcare dollars, market-oriented models. should have a competitive edge when it comes to attracting “Wisconsin Collaborative for Healthcare Quality is part of new business operations or expansions, compared to other this equation,” he says. “We collect and report on data from states. Wisconsin plans to remain a leader in delivering physician groups regarding clinical quality. We use a variety of innovative solutions for healthcare that make Wisconsin clinically relevant metrics and make this information available businesses more competitive in the global marketplace.” BV online to help customers choose providers, help providers Crawford is a Madison-based freelance writer. benchmark their performance and improve their practices and outcomes, and help payers create better payment models.”

Wisconsin Business Voice 21 New “In Wisconsin” Marketing Initiative Champions the State’s Business Climate By Paul Jadin, CEO/Secretary of Wisconsin Economic Development Corporation

n the past year, since the legislature prominence. Of course, key on that list is Wisconsin and neighboring states. formed the Wisconsin Economic manufacturing in many industry classes, We’re developing a robust new IDevelopment Corporation, we’ve made including industrial manufacturing, website to serve as a “one stop shop” numerous positive changes to drive water-related products and systems, for businesses seeking information business growth in Wisconsin. These food production and processing, and and materials targeted at specific include changes to tax and litigation bio-science and healthcare equipment. audiences like site selectors. We’re also regulations and valuable incentives for Wisconsin has always led the way in boosting our visibility efforts through businesses to relocate to our state and manufacturing and continues to rank at numerous channels and working in create jobs through expansion. We’re the top, and through the “In Wisconsin” close collaboration with our statewide also working with legislators to develop brand we will embrace and celebrate that economic development partners. a state-supported capital investment proud heritage. Our goal is to increase awareness of program that will help entrepreneurs To tell the story of Wisconsin’s business Wisconsin as a premier state to do turn their ideas into profitable business climate, we secured the support and business. Success measures include ventures. participation of world-class Wisconsin continued improvement of our state’s Business leaders around the country have companies that have excelled in ranking in business climate surveys taken note. We recently jumped to 20th their industries with innovation and and our ability to fill the pipeline of place in CEO Magazine’s prestigious leadership. These include: Rockwell economic development projects. Of business climate ranking and moved up Automation, which began in Milwaukee course, our ultimate success measure is to 17th place in CNBC’s top states for as Allen-Bradley and is leading the a strong, vibrant economic climate that business. And statewide, we’ve seen a age of smart manufacturing; Organic supports business start-up, retention, renewed interest among business leaders Valley, which started in 1988 with seven expansion, and attraction in Wisconsin. to move forward with growth and farmers in LaFarge and is now I can’t think of a better time to promote expansion plans. the leading producer Wisconsin’s diverse, expanding business Now, we’re embarking of organic products environment. We look forward to upon a comprehensive in the country; continuing to partner with organizations initiative to brand and Schneider like WMC, which shares similar goals. Wisconsin’s business National, formed Strong business grows In Wisconsin. BV in 1935 in climate to create Paul Jadin is CEO/ awareness among Green Bay by Al Schneider, Secretary of Wisconsin business leaders Economic Development who sold his of the benefits of Corporation. Visit starting, growing or family car and www.wedc.org for more expanding a business in bought one truck. information. Jadin will Wisconsin. In essence, our These companies become President of goal is to align the perception were chosen based Thrive this November. of Wisconsin’s business climate with on a variety of criteria, our new reality. most importantly that they share the drive, spirit and innovation it takes to Our brand, “In Wisconsin,” highlights go from idea to global business. Other what makes Wisconsin a great state companies will join us in future phases in which to do business. Namely: a of this campaign in order to highlight culture of independence, innovation additional Wisconsin economic and discovery; a prime location in strengths. terms of infrastructure and low business costs; and, leadership in numerous The “In Wisconsin” campaign includes industry sectors with worldwide market print, web and billboard advertising targeted to reach business owners in

22 WMC in the News – On Workforce “Right now there are shortages of engineers, welders, CNC operators, machinists and masons. Some of those require work Helping Wisconsin experience, some apprenticeships, some technical degrees, some four-year degrees or more. Let’s make sure everyone knows the Manufacturers Compete market, because the market will drive us to success.” for Over 50 Years – Jim Morgan, WMC Foundation President, Janesville Gazette, August 26, 2012 Wisconsin Owned and Operated n the conomy O E Engman-Taylor is an industrial distributor, servicing manufacturers, with a “I think we have a bipolar economy.” focus on integrated supply and lowering the overall cost to produce quality – Kurt R. Bauer, WMC President/CEO, components. Our philosophy is simple; we strive to help you produce the Green Bay Press Gazette, July 29, 2012 highest quality components at the lowest cost. On Mining ® “The United States has more than $6 trillion Cost Circles worth of untapped minerals waiting to be Our award-winning Integrated Supply Model addresses three mined. Advances in mining technology MANUFACTURING ADMINISTRATIVE separate but related areas to COSTS COSTS allow valuable minerals to be mined in an Some determine your level of Impact environmentally responsible manner while financial success: Small Impact Small Impact providing family-supporting jobs – leaving MAXIMUM IMPACT the anti-mining crowd with no rational basis • Administrative Costs Some Some to oppose mining investment projects.” • Manufacturing Costs Impact Impact – Scott Manley, WMC Director of • Price Environmental & Energy Policy, Heartlander, PRICE Published by The Heartland Institute, Reducing cost in one area is good, reducing in two areas is better, but July 6, 2012 Small Impact attacking all three areas On Healthcare simultaneously is best. “It is similar to a business in a hurricane zone preparing for a forecasted storm www.engman-taylor.com that may or may not hit. Pragmatism and prudence dictates that you prepare for the W142 N9351 Fountain Blvd. 3311 E. Capitol Dr. 7980 Burden Rd. Menomonee Falls, WI 53051 Appleton, WI 54911 Machesney Park, IL 61115 worst-case scenario, just in case.” 800-236-1975 800-236-3820 800-236-3820

– Rebecca Hogan, WMC Director of Health & 2500 N. Main St. Suite #1 8301 Arrowridge Blvd. Unit F Human Resources Policy, The Business Journal East Peoria, IL 61611 Charlotte, NC 28273 Serving Greater Milwaukee, September 14, 2012 800-232-0295 800-532-6051

Three manufacturing-focused events coming to Milwaukee

ea! Celebrating 25 Y

Manufacturing Matters! Manufacturer of the Focus on Manufacturing Conference Year Awards Breakfast February 27-28, 2013 Now seeking nominations! Friday, March 1, 2013 Hyatt Hotel February 28, 2013 The Pfister Hotel www.manufacturingmatters.org The Pfister Hotel www.wmc.org/events/focus-on- www.wimoty.com manufacturing-breakfast/

Wisconsin Business Voice 23 MADEMade In Wisconsin IN WISC ast month we highlighted K&B Innovations, makers of Shrinky Dinks; Mathews Solocam bows; St. Croix fishing rods, and LSilver Spring horseradish. This week we’re introducing you to…

Schaefer Brush Manufacturing Carma Laboratories, Inc. Family-owned and proud to call We’ve all used Carmex from the little jar with the familiar Wisconsin home since 1905, yellow cap. But did you know it’s made right in Frankiln, Schaefer Brush in Waukesha is Wisconsin? Alfred Woelbing was a buyer at a Chicago a one of the most diverse brush department store back in 1937, but he didn’t much like manufacturers in the world. working in the big city. So he began his own business, making The craftsmanship and skills of their 56 employees help them silver polish in the basement of his home in Wauwatosa, specialize in all types of brushes including twisted-in-wire Wisconsin. Always curious, always inventive, Alfred then brushes, cylinder, belt, staple-set, hand drawn and metal-back decided to create a home remedy for a pesky condition that strip to name a few. Schaefer Brush supplies 1,200 companies he’d often suffered: cold sores. After much experimentation across the United States and the world in diverse industries over a hot plate, Alfred created Carmex, and then proceeded such as foundries, mining, automotive, construction, plumbing, to sell it to pharmacies by going door to door. It wasn’t long HVAC, maintenance, and many more. Andrew Schaefer before Alfred’s home-based business was booming. Apart founded Schaefer Brush, originally supplying brushes to the from a wartime hiatus in production due to lanolin rationing, entire brewing industry from a small building on south 2nd Alfred’s company—now street in Milwaukee. Harold Schaefer, the fourth generation known as Carma Labs—grew owner, runs the company today. The dedicated employees pride steadily. Now Carma Labs is themselves in providing every one of their customers with the managed by Alfred’s grandsons highest level of service in the industry. Paul and Eric Woelbing. This www.schaeferbrush.com new generation of Woelbings has overseen several major innovations, including the Berntsen International, Inc. introduction of new lip balm flavors; a lip balm line for Berntsen International, Inc., women, Carmex Moisture Madison, has been “Marking Plus™ ultra hydrating lip balm; the Infrastructure of the World” and a line of Carmex skin care products. for over 40 years as a leading manufacturer of marking and identification products for land www.mycarmex.com surveying, utilities and construction. Berntsen is a privately held, family business owned and operated by Rhonda Rushing Contact Katy Pettersen, [email protected] if you are whose father, Phil Peterson, co-founded the business in interested in having your product featured in Wisconsin 1972. Today, Berntsen’s Business Voice. customized survey products can be seen worldwide – from Walt Disney World, to the top of Mt. McKinley, to the Nile River. Innovation has marked Berntsen’s history and continues with the recent launching of the new Berntsen Inframarker RFID (Radio Frequency Identification) system for location, verification and documentation of underground assets such as utilities. www.berntsen.com

24

HEALTHCARE Wisconsin Can Lead the Way for Healthcare Reform By Rebecca Hogan, WMC Director of Health & Human Resources Policy

little to contain healthcare costs. Most Not only did Wisconsin already address businesses, before the passage of the these issues, insurers and healthcare federal health law, agreed that national providers were working to establish reform was needed. The skyrocketing cost and quality measures to meet costs were not sustainable. The ACA is the demands of employers who were not the reform businesses bargained for. no longer willing to pay upwards of All across the country, no matter the ten percent a year in healthcare cost industry, people are wrestling with the increases. new regulations, but in Wisconsin, we So now, instead of getting real reform, are subsidizing the law. That is because employers in Wisconsin will be getting Wisconsin already had in place many much of the same, but at a higher cost. of the provisions the federal law now This is in addition to employee coverage ver since the Federal Supreme requires. Things like: mandates and much more paperwork to Court’s ruling in June on the • provide to the federal government. EAffordable Care Act (ACA), I have Dependent coverage to age 26 (we been working alongside our members were once to age 27!) No matter what happens to the ACA to figure out what compliance with the • Required coverage of contraceptives after the November elections, we must advance policies that will lead to lower upheld law entails. • Required direct access to OB/GYN healthcare costs for everyone. I hope services With over 2,000 pages in the bill, Wisconsin can be a model for the nation • thousands of additional pages of federal Required coverage of mammograms to review. guidance – some not yet released – • Guaranteed issue of small group employers, and in particular human I am eager for WMC’s new healthcare health insurance coverage committee to be a leader in this resources departments, have spent their • fair share of time and resources trying to Guaranteed renewability of discussion. If you or someone you know keep up. individual coverage has an interest is being part of the • Guaranteed coverage regardless of dialogue, please contact me at This summer, WMC hosted both a health conditions (HIRSP) [email protected]. We hope to healthcare webinar and an in-person • Individuals could not be dropped commence the discussion this fall. BV seminar to discuss compliance with Follow Rebecca on Twitter from a policy because of a health the Affordable Care Act in 2012 @Rebecca_Hogan and beyond. Good attendances and condition numerous questions at both these events • Prohibition of imposing preexisting make it easy to conclude that this law is conditions in virtually all nothing less than complicated. markets Never mind the law’s trillion-dollar • Rating limits imposed on plus price tag, the continual increase in insurers in a small group healthcare costs, the 20 new tax increases market (that’s the latest number I have), and the • Independent external political rhetoric. Employers have little review time to get tied up in the talking points; • Coverage of working they will do what is right and comply families with children with the law. • Medicaid expansion From a policy perspective I hope • Over 90 percent of the people will start to acknowledge that population with health this reform, at least so far, has done insurance Kurt Bauer leads the panel discussion with Hadley Heath, Senior Policy Analyst at the Independent Women's Forum, and Senator Ron Johnson during WMC's Affordable Care Act Update.

26 In Wisconsin, improving health care quality is health reform

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28 MC’s healthcare agenda includes initiatives to encourage employers to take innovative steps to improve the health status of their employees and control their healthcare costs. We have interviewed nearly 20 Wisconsin employers whose healthcare innovations serveW as best practices for others to use as models for their own initiatives. This is just a summary of some of the inspiring stories we’ve heard. To view all the best practices in detail visit the WMC website: http://www.wmc.org/programs/awardsprogramsbestpractices/ health-care-best-practices/

Business strategies Wellness Program ComPonents emPloyee engagement In most cases, innovative and effective They are scalable and can involve a lot of Forward thinking employers establish management of healthcare costs and resources or be done on the cheap. There is innovative programs to control costs and employee wellness are driven by company not a one-size-fits all model, it’s what works improve health status, but they have all found senior management, often hands on for you. Here are some examples of steps our they have to actively engage employees to get participation. Following are some of the key innovative Wisconsin employers are doing to good results. Here are some of the common strategies we have observed through our best improve employee health. best practices. practice studies.

Companies Set Clear Objectives: A Health Risk Assessment (HRA) is the Companies engage, interest, and connect  Reduced absenteeism and productivity cornerstone for many employee programs: employees using programs like:  Reduced healthcare costs  Written and biometric tests  Internal competitions, and challenges  Improved employee and family health  Mandated for employees, offered free to spouses  Incentives to participate in wellness activities, and use preventive and disease management services  Be viewed as the Employer of Choice  Surcharge insurance premiums if don’t participate  Set example in community  Identify high risk conditions through HRA  Follow up with personal coaching and aggressive case management programs

Change employee behaviors through Encourage preventive screening: Set standards and metrics for incentives: incentives (and disincentives)  Mammograms  Participate in Health Risk Assessments  Establish holistic wellness, fitness and prevention  PSA  Enroll in Non-smoking programs programs with incentives  Blood pressure  Enroll in weight loss programs  Use preventive care services. Schedule routine physical exams  Attend seminars and lunch and learns  Get flu shots

Alter plan designs: Educational programs: Incentive models can take many forms:  Increase copays and/or deductibles  Bring in outside experts to talk on subjects like  Monthly cash rewards cardiovascular care, smoking cessation, diabetes  Cover all preventive care services at no cost to  Points programs. Most wellness/fitness/nutrition employee management, obesity, etc. activities qualify  Impose disincentives for unwarranted use of  Participation is key, not outcomes emergency room services On site fitness facilities:  Incentivize HRA participation. Or mandate it. Some  Install high deductible plans with Health Savings or  From state of the art to free used equipment. employers mandate HRA’s for employees and Reimbursement accounts  Unsupervised to staffed with professional trainer. spouses  Promote/incentivize use of generic drugs and use of  Open programs to organized classes Pharmacy Benefits Manager (PBM)

Control utilization: Employers allow flexible work hours to Incentives are paid in different ways:  Channel employee purchasing decisions through data facilitate use of facilities:  Cash incentives (taxable) transparence, communications and incentives  Access for employee and spouse and dependents  HSA contributions  Control the cost of chronic disease utilizing HRA’s with  Some offer 24/7 access  Premium reduction credit or employee/employer follow-up counseling. share. Some employers change the share by as  Use of healthcare data from insurers and other much as 60/40% to 75/25% or more. sources to encourage the use of high quality, low cost providers:  Contract for specific services like bypasses, hip and knee replacements including at out of area high quality low cost providers.

Integrate company provided services to Nutrition: manage disease: Provide a continuum of  Company subsidized promotions to encourage preventive and rehabilitative services: healthy eating If your company has established  Wellness  Healthy options in vending machines. One company innovative programs to control  Fitness has the vending company insert gift cards in random healthy choices. healthcare costs and improve  Nutrition (cafeteria)  Promote use of community based agriculture. Some  Physical therapy companies sponsor weekly on-site farmers markets. employee wellness and productivity  Occupational health  Cafeteria discounts on healthy choices. let us know and we will consider  Provide services of a Nutritional counselor featuring you in an upcoming report. Contact Mike Shoys at Bring medical services in-house: On-site stress management, massage  On-site clinics: Quad Med, Ashley, Seats Inc. are some therapy, etc: [email protected]. examples  Yoga  Physician or Nurse Practitioner on-site weekly.  Relaxation room Counsels employees, conducts sports exams,  Flexible schedules administers vaccinations, etc.  On-site chiropractor and dietician Wisconsin Business Voice 29 Warning Signs/Changes in SAFETYWorkplace Violence: Behavior • Tardiness, unexplained absences or unplanned-use of leave time Preventing the Unthinkable • By Janie Ritter, Director of Wisconsin Safety Council Anxiety • Lack of concentration • 4. Change in job performance long with the rest of the Violence committed by a non- • Noticeable isolation from nation, I watched with employee but has a connection to an coworkers horrorA as the violent event employee (domestic issue) • Disruptive phone calls or e-mail unfolded at the Sikh temple in When violence comes from categories • Sudden requests to be moved Oak Creek this summer. That 3 or 4 above (employee or someone from public locations in the shooting took place the week workplace connected to an employee) there is a • after a disgruntled ex-employee Unexplained bruises or injuries greater chance of you will see warning • walked into his workplace in Noticeable change in use of signs. makeup (to cover up injuries) Milwaukee and shot to death As a business leader, you play an • Disruptive visits from current or his supervisor. These are horrific, former intimate partner hard-to-comprehend, surreal, yet extremely important role in the prevention of workplace violence. The • Acting uncharacteristically isolated incidents of violence. moody, depressed, or distracted safety and welfare of your employees Despite the perception, homicides represent a very small • In the process of ending a goes beyond managing the traditional relationship number of workplace violence incidents. Most workplace risks: traffic accidents, slip and trips, or violence incidents involve cases of assault, domestic violence, • Being the victim of vandalism injuries involving machinery. or threats stalking, harassment and physical or emotional abuse – these cases you rarely hear about in the news. However, if not dealt Workplace violence is a serious concern, with timely and properly, these incidents can escalate into a not only because of the human factor, homicide situation - something we all hope will never happen but also as a business practice. There are many economic in our place of business. costs to employers including negative effects on your bottom line with lost work time, decreased employee morale and Homicides in the workplace are currently the fourth-leading trust, lower productivity, increased medical and workers cause of fatal occupational injuries in the U.S., behind traffic compensation costs, and the list goes on. accidents, contact with equipment, and falls. Even though the occurrences of homicides in the workplace are trending down, We all hope we don’t have to deal with a workplace violence workplace violence is always a major concern for employers. situation, but it behooves us to be prepared in case we do. BV Follow WSC on Twitter @WISafetyCouncil Studies indicate each year close to 2 million American workers report having been victims of workplace violence. And, as with any abuse situation, many more go unreported. Assessing Prevention Strategies possible risks is an important early step in violence prevention. To prevent or minimize the risk of violence in the workplace, employers The following are a few factors that may increase a worker’s should enact appropriate precautions, including: risk for workplace violence:  Establish and communicate  Training: train employees in • exchange of money a fair and consistent zero- non-violent response and • delivery of passengers, goods or services tolerance policy toward conflict resolution tactics, and workplace violence: a policy provide them with information • contact with the public • covering all workers, patients, on hazards associated with working with volatile, unstable people clients, visitors, contractors, and specific tasks or worksites with • working alone or in small groups anyone else who comes into appropriate work practices/ • working early in the morning or late at night contact with your staff. policies and risk prevention • working in high crime areas  Assess work environments: solutions. create physical separation  Support victims of workplace Workplace violence falls into four categories: between public and worker, violence: Communicate internal 1. Violence committed by criminals with no connection to the use appropriate lighting and and external resources available workplace (largest group) environment layout including to employees. Foster trust 2. entrances and exit access. Ensure and respect among workers Violence directed toward employees by customers, clients or high-risk areas are more visible. and between employee and others whom an organization provides a service  management. Watch for 3. Adopt a carefully written Violence against a co-worker, supervisor or manager by and implemented Workplace warning signs. current or former employee Violence Prevention Program: include in your Employee Handbook, or Operations Manual.

30 Chapter of Safety Training The Wisconsin Safety Council, a division of WMC, is the reason more people go home safely every day from manufacturing plants, offices, and construction sites. WSC offers training throughout the year at locations across the state. MILWAUKEE AREA October 10 Confined Space, Train-the-Trainer November 2 OSHA Recordkeeping Rule & Review November 8 Creating a World-Class Safety Culture MADISON AREA October 2 RCRA Compliance for Hazardous Waste Generators Overview October 2 DOT Hazmat Transportation Refresher Overview October 9 Coaching the Lift Truck Operator, Train-the-Trainer October 15-18 Safety Management Techniques (SMT), part of the Advanced Safety Certificate Series October 24 HazCom, Train-the-Trainer November 5-8 Worker’s Compensation Case Management & Workplace Anatomy December 4 OSHA Recordkeeping Rule & Review December 6 Effective Team Safety December 12 Worker’s Compensation Law Symposium December 13 Lockout/Tagout, Train-the-Trainer FOX VALLEY/GREEN BAY AREA October 30-November 2 OSHA 30-hour Voluntary Compliance Course for General Industry November 13 OSHA Recordkeeping Rule & Review MID-STATE AREA October 10 (Eau Claire) Coaching the Lift Truck Operator, Train-the-Trainer November 7 (Stevens Point) Decision 2012 Part IV: EPA Trainwreck Incident Investigation November 14 (Marshfield) October 24, 2012 Supervisor Development: Safety & Health Fundamentals 7:00 – 9:00 a.m. December 3 (Wausau) Best Western Bridgewood Resort Hotel, Neenah OSHA Recordkeeping Rule & Review $35 per person December 4-5 (Stevens Point) OSHA 10-hour Voluntary Compliance Course for General Featured Speakers: Congressman Reid Ribble (R – 8th District) and Ross Eisenberg, Industry Vice President of Energy Resource, National Association of Manufacturers December 12 (Marshfield) Safety Inspections The EPA has proposed a series of rules that will significantly increase the cost of energy. Wisconsin will be uniquely impacted by the EPA rules because of our heavy concentration of manufacturing jobs, and our investment in coal for electricity. The Decision 2012 Briefing will For a complete schedule and explain how these rules are likely to increase the cost of doing business, and what can be done registration information, visit to rein in the EPA. www.wisafetycouncil.org Visit www.wmc.org or call (608) 258-3400 for more information and to register.

Wisconsin Business Voice 31 COMPANYCompany News NEW Advanced Welding Institute Briggs & Stratton CEO Skyward, Inc. Earns 2012 Opens Location in Wisconsin Honored with Distinguished Reader’s Choice Award for Advanced Alumni Award School Management System Welding Institute Todd Teske serves Skyward, Inc. in is opening a as the chairman, Stevens Point is a welding school president and chief leading provider in Eagle River executive officer of of K-12 school in northeastern the world’s largest administrative Wisconsin. The post-secondary welding producer of gasoline software that surpasses districts’ needs school offers accelerated welding engines and a leader in state reporting, improves operational programs to meet the growing demand of in outdoor power capabilities, and opens communication skilled labor in Wisconsin manufacturing. products with revenues exceeding between schools and families. Each AWI students have the option to choose $2 billion annually. He is also the elected year the readers of eSchool News, the structural program which is 15 weeks, chair of WMC, and a 1987 graduate of eCampus News and eClassroom News and AWI will also offer night classes and the University of Wisconsin Oshkosh. nominate their top picks for hardware, upgrade training to employers to increase This October, Teske will be one of five software, website and services. Nearly employee productivity and skill in the top alumni to receive the UW Oshkosh 1,300 nominations were submitted, workplace. Alumni Association’s highest honor— and Skyward was the only student www.wiweldingschool.com the Distinguished Alumni Award—at management system to receive the a dinner as part of the University’s award this year. For more than 30 years, Modine Manufacturing CEO Homecoming 2012 activities. Skyward has served more than 80 percent Named 2012 Distinguished “It is a testament to Todd’s intelligence, of Wisconsin’s school districts, serving more than 614,400 of Wisconsin’s Citizen of the Year work ethic and leaderships skills that he has, in a relatively short time frame, students. Over the years Skyward has Established by climbed to the top of one of the state’s hired 206 graduates of Wisconsin the Boy Scouts signature corporations with a brand name Technical Colleges and UW campuses of America, the recognizable the world over,” said across the state and projects creating Distinguished Citizen Kurt Bauer, President/CEO of WMC. nearly 600 new jobs over the next of the Year Award 10 years. recognizes noteworthy Patch Products Receives www.skyward.com and extraordinary Recognition as a Leader among leadership of citizens Family-Owned Businesses Top Floor Technologies Moving across the United State who demonstrate to the “Top Floor” values expressed in the Scout Law. Tom Due to its Burke, President and Chief Executive strong employee Top Floor strategic internet marketing solutions Officer of Modine Manufacturing work ethic and Technologies, Company in Racine, has been chosen unwavering devotion to having fun, a leader in as the 2012 Distinguished Citizen of Patch Products was recognized for being industrial web design and marketing, the Year by the Three Harbors Council a leader among family-owned businesses recently completed a move to the of the Boy Scouts of America. Burke in the state of Wisconsin. The CPA Security Insurance Building on and Modine Manufacturing are being firm Smith & Gesteland honored Patch S. Moorland Road in New Berlin. “We honored for the impact he and the Products at their annual Wisconsin want to create a more enjoyable and company have on the Racine community. Family Business of the Year Awards in productive work environment for our Madison this May, with its Work Hard - team and customers,” said Jim Bernthal, Play Hard Award. President of Top Floor Technologies. The company has grown exponentially over www.patchproducts.com the years, increasing from a staff of six to a team of twenty-five. www.topfloortech.com

32 WMC at Home and on the Road

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4 5 6

7 8 9

1. WMC met with a group of mayors from Argentina who wanted to 6. WMC’s Kurt Bauer, right, and Dan Ariens, President/CEO of discuss economic development in Wisconsin. Ariens Company, second from left, honored Rep. Al Ott (R-Forest 2. WMC’s Senior Vice President of Government Relations James Junction), left, and Sen. Frank Lasee (R-De Pere), second from Buchen met with Chad Lee, U.S. Congressional candidate right, with Working Wisconsin Awards during an event celebrating (R-Madison). the production of 3 million Sno-throwers at Ariens Company in 3. Along with many concerned manufacturers, educators and Brillion. community leaders, a high school student attended a WMC 7. UW System President Kevin Reilly and David Brukardt, Associate Foundation Workforce Paradox listening session and offered Vice President of the Office of Economic Development for the UW suggestions on how manufacturers can better reach out to System met with WMC executives to discuss ways the two entities students and parents. can work together. Secretary of Administration Mike Huebsch spoke to the WMC 4. Throughout the summer, Wisconsin Safety Council Director Janie Small Business Committee. 8. Ritter toured the state visiting the Wisconsin Corporate Safety 5. WMC’s current and many past chairmen gathered in Milwaukee. Award Winners and presenting each company with a CSA flag. First row (l-r): Tom Boldt, The Boldt Company; Bob Cornog, Snap- Here she is with Dillman Inc. on Incorporated; Ray Gregg, John Deere Horicon Works; Bob Members of WMC’s staff visited many companies this summer Spitzer, Murphy Products Company, Inc.; Rock Flowers, Nelson 9. to award legislators with the Working for Wisconsin awards (see Industries, Inc. Second row: Jim Haney, former WMC President; p. 7 for the complete list). WMC’s James Buchen, left, visited Terry Growcock, The Manitowoc Company, Inc.; Randy Knox, Caterpillar to honor Rep. Mark Honadel (R-South Milwaukee). W.D. Hoard & Sons Company; WMC Chair Todd Teske, Briggs & Stratton Corporation; Tom Howatt, Wausau Paper Corp.; Art Nesbitt, Nasco International, Inc.

Wisconsin Business Voice 33 Let’s Get Back to Working, the Wisconsin Way By Tommy G. Thompson, Candidate for U.S. Senate

isconsin’s role in this year’s election 3. “Work Wanted” vs. “Help Wanted” - Currently, there is hard to overstate. Not only does are 23 million Americans struggling to find work. As WisconsinW feature our very own Vice government spending and regulation get in the way of Presidential candidate, Paul Ryan, but job creation, our unemployment rate climbs. Baldwin with my victory we have the chance to doesn’t have a plan for turning those haunting “work provide the U.S. Senate the 51st vote to wanted” signs into “help wanted” signs. We’ve done it in change the course of the country. Wisconsin, and can do for the country what we did in our Our country is in crisis, with Washington’s great state. leadership providing one broken promise 4. The Unfulfilled Promise of a College Degree - A college after another that have left our country worse off. On our degree used to mean they key to opportunity, now with current course, we are in danger of breaking perhaps our over half of all recent college graduates unable to find most-important promise, the promise to leave our country in work, the college diploma has become an unfortunate better shape and with greater opportunity for our children and symbol of the broken promise of a better America. Our grandchildren. stalled economy isn’t providing opportunity and bailouts; There’s the “Wisconsin Way” where we get government out of stimulus packages and massive government programs the way by cutting taxes, growing the economy and creating aren’t the answer. jobs which is what we did when I was governor. Together, we 5. Falling Family Income and Rising Costs - The heartland created 750,000 jobs while I cut taxes 91 times, delivering over has been challenged as family income has fallen by an a billion dollars in property tax cuts. average of $4,000 over the past four years, yet the cost For the past four years, we’ve seen Tammy Baldwin further of living has increased as food, utility, gasoline and embrace the “Washington D.C. Way” of more government and healthcare premiums have skyrocketed, often doubling. higher taxes and the results have sent our country in the wrong Yet, Baldwin has supported 135 new tax increases, while direction: voting to raise our country’s debt ceiling seven times. We don’t need higher taxes and more government spending, - 1. Record Debt Over the past four years, Baldwin has we need less. joined Democrats in driving our country’s debt to a staggering $16 trillion, an 81 percent increase in the past We don’t need Baldwin’s plan for more of the same, we need a four years alone. I support the Romney/Ryan plan - we new opportunity and a new direction for our country. We must can’t spend more than we take in. get our country working again, with real reforms like those that have worked in Wisconsin, rather than the “Government first, - 2. Explosion of Entitlements In the 1960s, government business second” philosophy my opponent and the Washington transfers to individuals equaled $24 billion in current leadership have embraced the past four years. Together, we can dollars, by 2010 that amount was nearly 100 times as keep our promise to our future generations, and it begins with large - and that doesn’t include the addition of the single your help on November 6. BV largest entitlement, the Baldwin-supported Obamacare. When the economy fails, government grows - we need to reverse that trend.

Thank You Senator Kohl

MC and WMEP thank Senator Kohl for his diligent effort representing the people of Wisconsin for the past 23 years. Senator Kohl’s work with the WisconsinW Manufacturing Extension Partnership has helped WMEP thrive and grow. “The Senator has been a tireless supporter of the Manufacturing Extension Partnership Senator Kohl with WMEP's system and the Wisconsin MEP. Senator Kohl was there at the formation of this Buckley Brinkman. system that helps small and medium sized manufacturers flourish and thrive. His leadership and continuous support for funding assured that these operations would 34 have the same resources as their larger cousins. We Must Invest in a “Made in Wisconsin” Economy By Congresswoman Tammy Baldwin, Candidate for U.S. Senate

or the past 14 years as a member I have worked across party lines to introduce and pass of Congress, I have always had an bipartisan legislation to take on China’s unfair trade practices Fopen door for the Wisconsin business and strengthen Wisconsin’s manufacturing economy by evening community and, if elected to the U.S. the playing field for workers in our state. Together with Fox Senate that will continue. You deserve Valley Congressman Reid Ribble, I introduced the CHEATS a Senator who will listen and work for Act, which would allow the U.S. to impose countervailing Wisconsin. duties on Chinese imports that are heavily subsidized by the I have fought to secure research and Chinese government. development investments for Wisconsin Working with Senator , I have pressed the businesses and I have proactively reached out to the business federal government for a balanced approach to regulations community on important issues like manufacturing, energy, on Wisconsin’s paper manufacturers so that we protect our health care costs, innovation, and research and development. environment and public health, while at the same time we As I travel across Wisconsin, I do a lot of listening and work to strengthen Wisconsin’s manufacturing economy. wherever I go businesses leaders tell me about the need to cut Heeding the concerns of Wisconsin’s paper manufacturers, we taxes for small businesses and invest in education and training made a strong case for Wisconsin manufacturers and urged to grow our economy and create jobs. They talk about the need the administration to allow more time to implement the new for our education system to provide the skilled workers they standards. need to compete and prosper. And they express frustration with I have also worked across party lines to strengthen Wisconsin’s the disconnect of the partisan debates in Washington. They economy with Senator Ron Johnson. Together, we both believe we need more compromise, not less, and they are right. supported rebuilding the St. Croix bridge because I understand I have been proud to be strong advocate for public private strengthening our infrastructure is a very important component partnerships to grow our economy. Innovation has always been to our global competitiveness. Wisconsin businesses need a a key driver of U.S. prosperity and competitiveness throughout strong infrastructure to move their goods and products to our country’s history. Wisconsin, and particularly the University market. of Wisconsin System, has been a leader in research, science and In Wisconsin, we’ve always counted on manufacturing as innovation. a foundation of our economy and it is a foundation I am In Wisconsin, we believe in hard work. For decades, we’ve made committed to strengthening. In order to move our economic things: paper, engines, tools, ships. recovery forward we must invest in a “Made in Wisconsin” economy. When we do, we will create jobs and an economy Give our workers and businesses a fair shot, and we’ll compete built to last- where both the middle class and business benefit against anyone. That’s why I’m taking on China’s cheating – and with shared prosperity. BV betting on Wisconsin.

Senator Kohl also provides personal support for the state’s manufacturers. He makes countless trips to factories throughout Wisconsin to see the challenges they face first-hand. Wherever manufacturers need help, Senator Kohl has been there. His retirement is the end of an era. I grew up shaking hands with Bill Proxmire at stadiums, state fairs, and town meetings. He took a passionate interest in the wellbeing of the people of Wisconsin. Senator Kohl carried on that tradition, fighting for all of us in the way that only he can. Thank you. You will be missed!” - Buckley Brinkman, Executive Director/CEO, Wisconsin Manufacturing Extension Partnership More to Madison than Politics By Jennifer Alexander, President, Greater Madison Chamber of Commerce

adison is 30 square miles the state that UW-Madison and its All of this growth, all of this economic surrounded by reality. When these affiliated organizations support while impact isn’t because of Madison’s politics; wordsM were spoken in 1978 by soon-to- generating $614 million in Wisconsin it is because Madison is a great place for be Governor Lee Dreyfus, the question tax revenue. business, for family and for life. When was not about the political correctness of Next, factor in the nearly $7 billion in Madison ranks as one of the top places Madison. It was – is it really 30 square income generated throughout the state in the nation for young professionals miles? from the Wisconsin bioscience sector. to work as well as retirees to relocate, it While the mileage has increased and Factor out about one-fourth of that as helps our tourism industry and puts our been questioned through the years, the the Madison area is home to almost state on the map. perception of Madison has stuck. As the 25 percent of Wisconsin’s bioscience It’s a Wonderful Life ends with the main Capital City and the geographic location establishments. character finding Zuzu’s petals in his of the past year’s intense political scene, Then, eliminate the area’s $1.86 billion pocket, remembering that without the perception may be at an all-time agriculture industry that supports nearly him, his daughter would not have been high. 60,000 jobs. And remember, the state’s born. Maybe drawing the same analogy Now, I’m not writing to defend nor deny sales tax revenue would need to decline to an old Badger ticket stub is a little the perceptions of Madison politics. I’ve by 12.5 percent. Impressive given that too much? Maybe the better way to seen both sides bring passion to many Dane County’s population is less than 8 say it is this – the next time you hear topics as I’ve worked as a small business percent of the state’s population. someone dismiss Madison because of its ‘crazy politics,’ remember… a successful owner, a high school principal, a cabinet Oh, and don’t forget to remove 14.5 member under two Governors and now Madison contributes to a successful percent of Wisconsin’s Gross Domestic Wisconsin. the retiring President of the Greater Product as well. Madison Chamber of Commerce. No matter how many square miles we My point is – a successful Madison area have. BV What I am writing about is the rest contributes to a successful state. The Jennifer Alexander of Madison. The non-political side of Greater Madison area has a significant Madison. is the President of economic impact on Wisconsin. And Greater Madison Imagine for a minute, in an It’s-a- exciting things are happening here. Chamber of Wonderful-Life type of way, what Shouldn’t we celebrate that our state Commerce. She is Wisconsin would look like without has housed and grown many national retiring at the end of Madison? companies such as Oscar Mayer, this year after nine First, imagine our state without the American Family Insurance, Trek Bikes, years of service. University of Wisconsin and the Epic Systems and Spectrum Brands educational opportunities it offers. Now, just to name a few? These recognizable take away the 130,000 jobs throughout brands have benefitted the entire state.

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