Official magazine of Wisconsin’s Chamber April 2015: Issue 14 Defending Freedom Wisconsin Defense Contracts Page 20 Inside: Wisconsin Manufacturer of the Year Award Winners p. 3 Technology, Safety Features and OSHA – Everyone Needs to Get on the Same Page p. 28 Detachable Legislative Directory p.35 WISCONSIN In this issue… BUSINESS VOICE 2 Charting Progress in Closing the Skills Gap KURT BAUER, WMC 3 Wisconsin Manufacturer of the Year Award From the Editor Winners This year marks the 27th Annual Wisconsin Manufacturer of the c5 RightHRIS toREADER, Work MythWMC Busting Year award program. Seven worthy companies were awarded at a black-tie 6 Simple, Just Not Easy ceremony in Milwaukee in February. JIM MORGAN, WMC FOUNDATION I have attended the Awards Dinner every year since starting with WMC 8 With Right to Work Legislation Done, What’s in 2004 and I am still always in awe Next? of the quality of companies and the SCOTT MANLEY, WMC caliber of people who call Wisconsin home. 10 Wisconsin’s International Business Driver mIKE SHOYS, WMC Each winner is encouraged to say a few words to the room filled with Five Reasons Right to Work Got Done their peers, and in many cases, 14 CHARLIE SYKES competitors. Some company leaders’ remarks are short and sweet, some 17 The Workplace of Tomorrow: A Millennial are detailed and specific – but all Perspective are passionate and genuine. There’s STEVE BENZSCHAWEL, WMC/WISCONSIN BUSINESS usually a tear or two, and often a WORLD shout-out to parents who may have started the company that the son or daughter has grown into an empire, employing hundreds and sometimes 18 Technology, Safety Features and OSHA – thousands of people. JANIEEveryone RITTER, Needs WMC/WIS to Get onCONSIN the Same SAFETY Page COUNCIL The entire evening is inspiring – that more than 500 people would get all dressed up (yes, tuxes and evening gowns!) in the middle of winter and travel to Milwaukee to eagerly await the announcements of which 20-23 companies shall receive the coveted awards. It is a celebration of all that makes Wisconsin the great state it is today – hard work, dedication, loyalty, Defending Wisconsin’S community, family. Freedom: Defense This is just one of many reasons I am so proud to work for WMC, our state Contractors in Wisconsin chamber of commerce, where we represent manufacturers and all the companies in Wisconsin. You are the backbone of our economy – you are the reason our families thrive here. So thank you. Keep up the good work. 26 The School District of Beloit’s Career Technical SEducationTEVE MCN EALProgram bEN28 Who BE isM MikeyIS the Manufacturer? Editor, Wisconsin Business Voice [email protected] E30 EPARIC ProposesBOTT, WMC Most Expensive Air Rule Ever 32 The Ethanol Blend Wall: How a Federal Policy Cover details: The first U.S. Navy Littoral Combat Ship, USS Freedom (LCS Threatens a Key Wisconsin Industry and the 1), the inaugural ship in an entirely new class of U.S. Navy surface warships, Contents of Your Garage is seen conducting a speed run during Builders Trials. The ship was built by Marinette Marine and is designed for littoral, or close-to-shore, operations 34 JASONBudget CULOTTA, Presents WMCOpportunity for Tax Reform and to provide access and dominance in coastal-water areas. (Marinette, WI, Aug. 4, 2008 - Photo provided courtesy Lockheed Martin /Released) 35 Removable Legislative Directory State Budget Process Wisconsin Business Voice is published quarterly by Wisconsin Manufacturers & S38 EN. ERPENBACH (D-MIDDLETON) AND REP. NYGREN Commerce. WMC is Wisconsin’s chamber of commerce, manufacturers’ association, (R-MARINETTE) and safety council representing businesses of all sizes and from every sector of the economy. Send address changes to WMC, P.O. Box 352, Madison, WI 53701-0352. WMC's physical address is 501 E. Washington Avenue, Madison, WI 53703, S40 WisconsinHANNON FULL, Goes FOX to Washington CITIES CHAMBER OF (608) 258-3400. This publication is proudly printed on paper made in Wisconsin. COMMERCE Kurt R. Bauer, WMC President/CEO Katy Pettersen, Editor ([email protected]) Jane Sutter, Designer ([email protected]) Charting Progress in Closing the Skills Gap Kurt R. Bauer, WMC President/CEO nrollment in manufacturing- But while we should be pleased with our progress, we know related courses at Wisconsin’s there is a lot more work to be done to close the skills gap E16 technical colleges has increased in manufacturing, let alone the expanding worker shortage 26 percent since 2012. That doesn’t in other fields like information technology, accounting, mean the skills gap has been closed healthcare, teaching, etc. or that Wisconsin manufacturers Sixty-four percent of WMC’s member CEOs said in our now have a reliable pipeline of winter economic survey that they are having trouble finding workers to replace the retiring Baby workers, up from 53 percent last summer. That is likely why Boomers. But it does mean that we when asked in the same survey “what is the top business are making progress by working concern facing your company” 26 percent said “labor together to expose young people to availability.” manufacturing career options and by better aligning education with in-demand jobs. The sad irony is as the economy improves, demand for workers rises. But if businesses can’t find the workers, the Credit for the increased awareness of and interest in economy can’t improve, at least not to its full potential. manufacturing-related careers goes to many people and entities, including leaders in Wisconsin’s K-12 districts Case in point, Ashley Furniture recently announced it would (see column by former Beloit Public Schools forgo a planned expansion in Western Wisconsin in part Superintendent Steve McNeal because of a lack of workers. The on page 26), the Wisconsin state’s unemployment rate Technical College System, “The sad irony is that as the economy is just under 5 percent, the the Wisconsin Department improves, demand for workers rises. But lowest since 2008. But it is of Workforce Development, 4.5 percent in Trempealeau the Wisconsin Economic if businesses can’t find the workers, the County where Ashley is Development Corporation and economy can’t improve…” located. local chambers of commerce. Ashley’s decision makes me WMC deserves some of the credit as well. wonder which is the bigger challenge for Since 2011, WMC has hosted three workforce summits Wisconsin’s economy, creating new jobs or filling existing to bring together businesspeople, government officials ones? Given that Wisconsin’s unemployment rate is still too and educators. Those summits have helped improve high and the labor participation rate is at or near a record communication and cooperation between manufacturers low, there should be enough supply of workers to meet the and K-12 districts and technical colleges. It also led to demand for jobs. But clearly that isn’t the case, at least in October being designated as Manufacturing Month in some parts of the state and in some professions. order to celebrate Wisconsin’s rich manufacturing past WMC will continue to work on addressing this issue via The and promote its promising future. Another important goal Future Wisconsin Project, which has identified workforce of Manufacturing Month is to expose young people to and business climate as its top two priorities. In fact, at the how things are made and the careers available in advanced first annual Future Wisconsin Economic Summit, held last manufacturing, including what kind of training is required to December in Milwaukee, WMC committed to developing pursue them. a better jobs projection mechanism for the state. The goal is Of course not all people enrolling in manufacturing-related to help young people make career and thus, education and courses are recent high school graduates. Many are displaced training choices based on good data of what jobs will be workers looking for new opportunities. They have heard that available when they enter the workforce. BV Wisconsin manufacturers have good paying jobs available to people who want to work, are drug free, interested in learning new skills and, in some cases, are willing to relocate. Follow Kurt on Twitter @Kurt_R_Bauer 2 Honoring Manufacturing Excellence in Wisconsin This February, seven Wisconsin companies were awarded a prestigious Wisconsin Lt. Governor Rebecca Kleefisch addressed the sold-out crowd. Manufacturer of the Year Award, competing against 40 total nominees. The winners were announced at a black tie banquet at The Pfister Hotel in Milwaukee. Celebrating its 27th year, the MOTY program recognizes manufacturers of all sizes and industries for their contributions to the great state of Wisconsin. The Wisconsin Manufacturer of the Year award winners were selected by an independent panel of judges representing industry, education, and the public sector. MOTY Winners 2014 Special Award Winners The hosts of the evening were Jim Morgan, President, WMC Foundation; Tod Linstroth, Managing SWORT LL H E TM Partner, Michael Best & Friedrich; EST. 1910 C O Y O R E P E M and Tim Christen, CEO, Baker Tilly R A AT I V E C R E Virchow Krause. MARKETPLACE OPPORTUNITY EMPLOYEE DEVELOPMENT & COMMITMENT SPECIAL AWARD SPECIAL AWARD 2014 Grand Award Winners WORKFORCE DEVELOPMENT SMALLCATEGORY MEDIUM CATEGORY GRAND AWARD GRAND AWARD GRAND AWARD This award competition is sponsored by LARGE CATEGORY MEGA CATEGORY GRAND AWARD GRAND AWARD www.wimoty.com If you run a business, you know. The most valuable things are also the hardest to get. Your business didn’t grow overnight. It came from years of hard work, confidence in what you could do, and making smart decisions. That’s why it’s so valuable. Which is why an insurance policy from West Bend makes sense. It protects Wisconsin manufacturers, large and small, so you can focus on doing what you do best.