BizTimesMilwaukeeBizTimesMilwaukee BizTimesMilwaukeeBizTimesMilwaukee BizTimesMilwaukeeBizTimesMilwaukee BizTimesMilwaukeeBizTimesMilwaukee BizTimesMilwaukeeBizTimesMilwaukee BizTimesMilwaukeeBizTimesMilwaukee BizTimesMilwaukeeBizTimesMilwaukee FINANCIAL STRAINS THREATEN TO BizTimesMilwaukeeBizTimesMilwaukee BizTimesMilwaukeeBizTimesMilwaukee CRIPPLE UWM’S DUAL AMBITIONS BizTimesMilwaukeeBizTimesMilwaukee Challenges mount in funding research, access missions at state’s second-largest university BizTimesMilwaukeeBizTimesMilwaukee BizTimesMilwaukeeBizTimesMilwaukee BizTimesMilwaukeeBizTimesMilwaukee BizTimesMilwaukeeBizTimesMilwaukee BizTimesMilwaukeeBizTimesMilwaukee BizTimesMilwaukeeBizTimesMilwaukee BizTimesMilwaukeeBizTimesMilwaukee BizTimesMilwaukeeBizTimesMilwaukee BizTimesMilwaukeeBizTimesMilwaukee BizTimesMilwaukeeBizTimesMilwaukee BizTimesMilwaukeeBizTimesMilwaukee BizTimesMilwaukeeBizTimesMilwaukee plus BizTimesMilwaukeeBizTimesMilwaukee BizTimesMilwaukeeBizTimesMilwaukee BizTimesMilwaukeeBizTimesMilwaukee BizTimesMilwaukeeBizTimesMilwaukee BizTimesMilwaukeeBizTimesMilwaukee MOBCRAFT AIMS TO EXPAND 23
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Managing Complexities - Culture, Costs, Customers and Supply Chain Join us October 12th for the 16th Annual Next Generation Manufacturing Summit. CEOs from the region’s leading manufacturers will discuss how they are managing today’s complexities and will share best practices that help their businesses succeed. Manufacturers are faced with tremendous challenges including significantly disrupted supply chains, a major workforce shortage, plus automation and productivity issues. These challenges make it difficult to control costs, manage customer expectations and put tremendous pressure on company culture. The program begins with a keynote conversation with Steven Richman, Group President of Milwaukee Tool. Next, a CEO panel will address supply chain realities and how local leaders are dealing with product delays, higher prices and managing customer frustrations. Panelists will also focus on strategies for creating a positive company culture and being more productive and doing more with less. The educational program concludes with breakout sessions on automation, culture, supply chain and more. Stay to network and mingle over cocktails and hors d’oeuvres.
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Keynote conversation: • Steven P. Richman, Group President, Milwaukee Tool (1) Panelists: • Bob Gross, President & CEO, Gross Automation (2) • Ryan Reigle, President & CEO, Regal Ware (3) • Jim Schneberger, President, New Berlin Plastics (4) • Mike Steger, President & COO, Waukesha Metal Products (5) Moderator: • Carol Crawford, Senior Consultant, WMEP (6)
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4 Leading Edge 4 NOW BY THE NUMBERS 5 STYLE 6 BIZPOLL PUBLIC RECORD 8 BIZ TRACKER 9 IN THE NEIGHBORHOOD 10 FRANCHISEE 11 GETTING THERE 12 PROJECT PITCH IT
13 Biz News 13 THE INTERVIEW: KYLE WEATHERLY 14 SOME SEE LOCAL UNIONIZATION EFFORTS AS POTENTIAL WORKFORCE SOLUTION
16 Real Estate 25 Focus on the Future Awards
COVER STORY
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Financial strains threaten to cripple UWM’s dual ambitions Challenges mount in funding research, access missions at state’s second-largest university
39 Strategies JAKE HILL PHOTOGRAPHY
BizTimes Milwaukee (ISSN 1095-936X & USPS # 017813) Volume 27, Number 10, September 27, 2021 – October 10, 2021. BizTimes Milwaukee is published bi-weekly, except monthly in January, February, July, August and December by BizTimes Media LLC at 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120, USA. Basic annual subscription rate is $96. Single copy price is $5. Back issues are $8 each. Periodicals postage paid at Milwaukee, WI and additional mailing offices. POSTMASTER: Send all UAA to CFS. NON-POSTAL AND MILITARY FACILITIES: Send address corrections to BizTimes Milwaukee, 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120. Entire contents copyright 2021 by BizTimes Media LLC. All rights reserved.
Contents
Special Report
23 Entrepreneurship and Family Business Coverage includes a look at MobCraft Beer Inc.’s expansion plans to open as many as 10 locations by 2025.
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39 CULTURE Cary Silverstein 40 LEADERSHIP Rand McNally 41 A BRIEF CASE
44 Biz Connections 44 GLANCE AT YESTERYEAR COMMENTARY 45 NONPROFIT 46 5 MINUTES WITH … DOMINIC ORTIZ
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COA Youth & Family Centers helps Milwaukee children, teens and families reach their greatest potential through a continuum of educational, recreational and social work programs offered through its urban community centers and rural camp facility. As a multicultural agency, COA values diversity and promotes positive social interaction.
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Leading Edge
BIZTIMES DAILY – The day’s most significant news → biztimes.com/subscribe
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How many Wisconsin workers could be impacted by Biden’s new vaccine mandate? By Lauren Anderson, staff writer President Joe Biden recently unveiled a new federal COVID-19 vaccine push that will affect as many as 100 million Americans, including employees in the private sector, health care industry and federal contractors. The new measure will require all private-sector companies with 100 or more employees – which together represent over 80 million workers in the U.S. – to ensure their employees get vaccinated
against COVID or get tested weekly. All federal workers and contractors will also be required to get vaccinated under the new order, which will be issued by the Occupational Safety and Health Administration. Companies that don’t comply with the mandate would face a $14,000 fine per violation, Biden said. In Wisconsin, the new federal vaccination rule could apply
BY THE NUMBERS U.S. Bank has the top deposit market share in Wisconsin, at $41 billion or
20%
market share.
4 / BizTimes Milwaukee SEPTEMBER 27, 2021
to roughly 1.2 million workers, including about 382,000 in metro Milwaukee. That’s based on 2018 figures, the most recent available data, from the U.S. Equal Employment Opportunity Commission, which annually surveys privatesector employers with at least 100 employees and federal contractors with at least 50 employees. That year, 1,209,412 workers were included in that data in Wisconsin, including 381,584 in the Milwaukee metro area. The number of affected employees could be higher, based on U.S. Census Bureau data, which in 2018 counted 1,739,535 employees in the state working at companies with more than 100 employees, including 545,175 in the Milwaukee region. The Census Bureau’s Statistics of Businesses data covers most private-sector employers except for agriculture and railroads. The Wisconsin total represented 66.5% of total employment in the state while the metro figure represented 69%. The EEOC and Census data, both lagging by three years, don’t reflect the roughly 3-5% drop in employment levels from 2018 to now. A more conservative picture of the number of potentially impacted workers comes from the U.S. Bureau of Labor Statistics, which in March 2021 counted 1,007,066 people working at Wisconsin establishments with more than 100 people. That data reflects the number of establishments – such as a single worksite or factory –
rather than an entire company. Several large Milwaukee-area employers have voluntarily implemented vaccine mandates for their employees in recent months, including ManpowerGroup, Molson Coors, Northwestern Mutual, BMO Financial Group and all major health care systems. Still, some business leaders have raised concerns about government overreach in response to Biden’s announcement. Metropolitan Milwaukee Association of Commerce said it shares the goal of increasing vaccination rates but warned the new mandate could burden businesses. “Many Milwaukee region employers already have chosen to require their employees to get vaccinated. Many public-facing venues have required the same of their customers. The same is true at some of our colleges and universities,” the chamber said in a statement. “However, we are concerned that this new federal requirement for any business with 100 or more employees to require vaccinations or regular testing of their entire workforce is a blunt instrument that will create a significant regulatory and logistical burden for businesses.” The federal order is already being contested, with the Republican National Committee announcing plans to file a lawsuit against the Biden administration over the mandates. n BizTimes associate editor Arthur Thomas contributed to this report.
office chairs
STEELCASE GESTURE $875-1,100 at Forward Space, Milwaukee The Steelcase Gesture is inspired by the human body and designed to support people’s interactions with today’s technologies. It provides support and comfort to a range of users in a range of postures.
BRAYTON MANOR DESK CHAIR $499 at Steinhafels, Pewaukee The Brayton Manor allows customers to add comfort and define their style. It’s a classic office chair that features a cognac brown finish and adjustable seat height.
NBF SIGNATURE SERIES SLEEK MESH-BACK CHAIR $339 at National Business Furniture, West Allis The Sleek mesh-back chair features a gray, fiberglass-reinforced frame with white accents. It has 3D arms with adjustable height, width and depth. It also has adjustable synchro-tilt and tilt-lock tension.
HUMANSCALE DIFFRIENT WORLD $599 at Brothers Interiors, Milwaukee The Diffrient World chair was designed to offer ease of use and effortless functionality. It has weight-sensitive recline that adjusts automatically and armrests that are attached to the back of the chair so they move with the user.
biztimes.com / 5
Leading Edge BIZ POLL
@BIZTIMESMEDIA – Real-time news
THE
A recent survey of BizTimes.com readers.
What is your company doing to encourage employees to get a COVID-19 vaccine? Nothing. That decision is entirely up to them:
57.1%
Requiring some or all employees to get the vaccine:
20%
Providing incentives for employees to get the vaccine: Other:
20%
2.9%
Share your opinion! Visit biztimes.com/bizpoll to cast your vote in the next Biz Poll.
Fred MacMurray Class of 1929 First. Foremost. Forward.
A young Fred MacMurray, saxophone in hand, arrived at Carroll in the late 1920s, hoping college could propel him into a career in the performing arts. It was a launch pad. By the end of the decade, he had already appeared in several motion pictures and sung on several records. What followed was a steady career as a Hollywood leading man, culminating in the 1960s when he headed several Disney films and gained fame as America’s dad on the “My Three Sons” television show. • Learn more at carrollu.edu/175
Carroll University: Pioneering For 175 Years! 6 / BizTimes Milwaukee SEPTEMBER 27, 2021
PUBLIC
RECORD Where is Milwaukee County growing? By Arthur Thomas, staff writer Milwaukee County and the city of Milwaukee did not receive good news when the U.S. Census Bureau released new population figures this summer. From 2010 to 2020, the city lost more than 17,600 residents, a nearly 3% drop, and the county lost more than 8,200 residents, an almost 1% decline. The state of Wisconsin’s population at least grew 3.6%, but it still trailed the entire country’s population growth of 7.4%. A closer look using Census data processed by Angeliki Kastanis of the Associated Press, however, shows diverging stories in Milwaukee’s population. The downtown and vicinity was home to some of the fastest growing areas of the state while the north and northwest sides of the city were among the hardest hit by population loss. Downtown Milwaukee and surrounding areas like the Third Ward, Walker’s Point and the Lower East Side added more than 7,600 residents, an increase of nearly 17% across 15 census tracts to reach a population of 52,855. At the same time, the area bounded by Capitol Drive, North 35th Street, Brown Street and just east of I-43 was home to 10 census tracts with more than 20% population loss. The area, which stretches just beyond the boundaries of the 53206 zip code, lost more than 6,900, to drop to a population of 32,891. Milwaukee County Population Other findings from the data Percentage change 2010-2020 include: • Dane County had 15 of 25, 26 of 50 and 36 of 100 of the fast-28.45 0 69.84 est growing census tracts in the state, including the four fastest. However, the fastest growing tract in the state barely cracked the top 1,000 nationally. • The fifth fastest growing census tract was in Grand Chute, just northwest of Appleton. • The census tract covering the Third Ward, along with parts of downtown Milwaukee and Walker’s Point, grew almost 70%, the sixth fastest rate in the state. • Two tracts in Wauwatosa had particularly strong growth. The area that includes the Milwaukee Regional Medical Center and neighborhoods immediately north and west grew 36%, while the tract containing the Mayfair Collection grew 26%. n
Leading Edge
LAST DAYS TO RESERVE YOUR PROFILE
The latest area economic data.
12%
Home sales in Milwaukee County were up nearly
in August, year-over-year, to 1,333.
58.81
The Milwaukee-area manufacturing index was
DEADLINE: SEPTEMBER 29, 2021
in August, up from 57.54 in July. Any reading above 50 indicates growth.
Wisconsin had a seasonally adjusted unemployment rate of
3.9%
PUBLIC AT IO N DAT E :
NOVE M BER 7, 2 02 1 Take advantage of the opportunity for your
in July.
organization to be seen by the region’s business and philanthropic leaders all year long.
35%
Passenger traffic at Milwaukee Mitchell International Airport was up nearly
CONTACT LINDA CRAWFORD OR YOUR ACCOUNT EXECUTIVE TODAY ( 41 4 ) 3 3 6-7 1 1 2 O R A DV E RT I SE @ B I ZTI M E S.COM
between January and July, compared to the same period a year ago.
5.4%
The number of new car registrations in metro Milwaukee was up
between January and July, compared to the same period a year ago.
8 / BizTimes Milwaukee SEPTEMBER 27, 2021
IN THE NEIGHBORHOOD What products do you make? Kate Hill: “DPG is a Milwaukee manufacturing company making three brands of products: TIE Office Mates, Great Menu Covers and Easy Partitions.”
DAKONTE PRODUCT GROUP, INC. 6615 W. Mill Road, Milwaukee NEIGHBORHOOD: Menomonee River Hills East FOUNDED: 2016 OWNER: Kate and Don Hill EMPLOYEES: 11 SERVICE: Sewn and heat seal vinyl products
How did the company get its start? “In 2016, I was approached by a business colleague to help find a buyer for the TIE Office Mates and Great Menu Covers product lines. When the search proved unsuccessful, I started DPG to acquire these product
lines with the goal of keeping jobs in Wisconsin by applying my decades of business and economic development experience.” What drew the company to Milwaukee’s northwest side from the suburbs? “The original workforce brought over with the two acquired product lines were Hmong refugees that lived on Milwaukee’s northwest side. Moving the operation from Sussex to their neighborhood eliminated long commutes and opened opportunities for others in the area.”
What’s one major adjustment the company has made because of COVID-19? “The pandemic all but eliminated restaurant menu cover sales and severely reduced industrial/office supply purchases of TIE Office Mates vinyl job ticket holders. This required an overnight pivot involving new product design, tooling, retraining employees and finding sales channels to market disposable face shields, COVID signage and sneeze guard partitions.” n
Meet Nancy and Dan Serving Southeastern Wisconsin Businesses
Proactive and strategic is how Nancy’s clients describe her.
In-depth tax knowledge and valuation expertise are what Dan is known for.
“Working with a variety of business owners gives me a unique perspective on the challenges they face and opportunities they can take advantage of. It is so rewarding to collaborate and implement plans that generate growth and profitability.” - Nancy
In the community: Nancy is the Treasurer of SHARP Literacy.
“Business valuations significantly impact the financial outcome for business owners. That is why I focus on helping owners understand ways they can improve the value of their company, before they need to sell.” - Dan
In the community:
Nancy Mehlberg
CVB, EA Principal mehlbergn@sva.com
Dan Glomski
CPA, ABV, CVA, MST Principal glomskid@sva.com
Dan is on the Board of Directors for Midwest Business Brokers and Intermediaries Association (MBBI).
Measurable Results. | SVAaccountants.com ®
biztimes.com / 9
Leading Edge
the
FRAN C H I S E E Mary Stallmann, owner of Dog Training Elite Milwaukee, and her Golden Retriever, Hank.
MARY STALLMANN DOG TRAINING ELITE THE FRANCHISE: Sandy, Utah-based Dog Training Elite offers in-home obedience training and behavioral modification services. The company was founded by John Mestas in 1976 and began franchising nationally in 2019. Today, it covers 35 territories across eight states. Local owner-operator Mary Stallmann recently launched Wisconsin’s first Dog Training Elite in the Milwaukee area.
DTE trainers bring necessary equipment to clients’ homes to train dogs in their own environment.
JANUARY 2019 Nearing 30 years in her education career, Mary Stallmann was looking to make a shift. Her husband, Dirk Stallmann, who is president of Verlo Mattress’s area franchise, was introduced to Dog Training Elite at a franchise convention and thought it would be a perfect fit for Mary. She loves animals, especially her two dogs, so she decided to investigate the opportunity.
“Dog Training Elite loves to have educators (as franchisees) because their whole format is ‘we train the dogs, but we teach the families,’” Mary Stallmann said.
MARCH 2021 Stallmann signs a franchise agreement with Dog Training Elite. The process had been on hold for months while she focused on navigating the COVID-19 pandemic during her final year as an elementary school principal.
“It was amazing to be with a company that everybody is helping each other out. We all have our own areas, so we’re not competitors. There’s a very collegial atmosphere, and (it’s) very welcoming. … It cemented the fact that I felt good about where I was going to go,” Stallmann said.
APRIL 2021 The company invited Stallmann to its convention, where she meets other franchise owners and learned about the business. She later traveled to the corporate headquarters in Utah for nearly three weeks of training. AUGUST 2021 Stallmann launches Dog Training Elite Milwaukee, which covers the four counties of Milwaukee, Ozaukee, Washington and Waukesha. These days, she’s booking one to two in-home sessions per day, including obedience training as well as service and therapy dog training. Demand for those services has remained strong throughout the pandemic with no signs of slowing. THE FRANCHISE FEE: The fee for one territory is $49,000.
10 / BizTimes Milwaukee SEPTEMBER 27, 2021
Stallmann travels to clients’ homes in her DTE-branded car.
GETTING
THERE
What do you do at Wipfli? “I lead our wonderful cost segregation and energy tax incentive team. These services help real estate owners increase their current cash flow by accelerating federal and state depreciation deductions, which then opens up availability for that increased cash flow to be invested in other ways. Property owners use these strategic tax planning tools for construction, purchased, expanded, and remodeled real estate.”
What excites you about your new role? “As a new partner at Wipfli, I’m excited about becoming an industry leader and creating a legacy that I can be proud of. But what I’m more excited about is the opportunity to mentor my new and upcoming team members. I’ve been blessed with the opportunity to have many leaders before me who I now consider close friends. They took the time to invest in me and truly wanted to see me succeed. It’s now time that I pay that debt back by investing into the young and bright minds within my team.”
What’s your favorite part of working with clients in the construction and real estate sector? “Contractors and real estate owners have an inspiring amount of passion, confidence and determination. They love and believe in what they do, even while knowing there is a certain amount of risk involved. Having this career has connected me with so many people and their stories, so I’m always learning something new.”
How do you spend your time outside of work? “I have two beautiful, energetic children: Will and Claire. After a long day at work, I turn into a human jungle gym for the remainder of the evening. A lot of my interests outside of work revolve around them, and I love it.” n
Manage health care costs without sacrificing coverage
Together with the Metropolitan Milwaukee Association of Commerce (MMAC), we’re working to help make it easier for you to find a health plan that works for your employees and your bottom line. That’s why when you work with an MMAC-affiliated broker, you’ll receive discounted rates on UnitedHealthcare’s All Savers® Alternate Funding health plans, as well as access to:
Supplemental financial protection benefits
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Specialty benefits like vision and dental
(groups 5 or more)
STEVEN BARNES Principal, Wipfli AGE: 38 HOMETOWN: Lake Geneva EDUCATION: Bachelor’s in architecture from University of WisconsinMilwaukee and associate in applied science, architecture from Milwaukee Area Technical College PREVIOUS POSITION: Senior manager at Wipfli
Ask for a quote
Contact an MMAC-affiliated broker or visit uhc.com/mmac
Administrative services provided by United HealthCare Services, Inc. or their affiliates, and UnitedHealthcare Service LLC in NY. Stop-loss insurance is underwritten by All Savers Insurance Company (except MA, MN, NJ and NY), UnitedHealthcare Insurance Company in MA and MN, UnitedHealthcare Life Insurance Company in NJ, and UnitedHealthcare Insurance Company of New York in NY. B2B EI792852.0 7/21 © 2021 United HealthCare Services, Inc. All Rights Reserved. 21-645455-B
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Leading Edge
PROJECT PITCH IT WHOLESOME DIAPER CO. A D D R E S S: Milwaukee LEADERSHIP: Abigail Austin, founder WEBSITE: wholesomediaper.com W H AT I T D O E S: Cloth diaper subscription service F O U N D E D: 2019
Wholesome Diaper Co. aims to franchise diaper delivery service By Brandon Anderegg, staff writer
W
holesome Diaper Co. is envisioning a franchised business model as the Milwaukee-based startup prepares its cloth diaper delivery service for future growth plans. The company delivers diapers to families in the Milwaukee area who want the perks of a cloth diaper, but don’t want to manage the additional laundry loads. For $24 a week, the startup will pick up, wash and deliver freshly cleaned cloth diapers to customers’ homes. Families with newborn babies typically use 50 to 70 diapers per week, but customers can customize their order based on their needs at the same price, said Abigail Austin, Wholesome Diaper Co. founder. “We’re bridging the gap between the ease of disposable diapers and the health benefits and the eco-friendly benefits of cloth diapers,” Austin said. Health benefits include breathability, which helps prevent diaper rash, while some customers have reported reduced leakage and “blowouts” with cloth diapers, Austin said. But customers also prefer a natural alternative, she said, adding that traditional diapers are made of synthetic plastics. Austin says a baby will create up to two tons of waste over three years of using disposable diapers, which can take 500 years to decompose in a landfill. While raising twins of her own, Austin recognized the amount of waste created by disposable diapers, prompting her to launch the company, she said. “I’m carrying multiple trash bags per week full of just diapers,” Austin said. “When you’re a parent, you see that it’s a lot of waste.” In addition to cloth diapers, Wholesome Diaper Co. offers reusable swim diapers,
SUPPORT
MKE’S
Wholesome Diaper Co. Abigail Austin, who is a mother of twins.
waterproof laundry bags and portable bags for parents on the go. The startup has also partnered with local businesses for subscription box add-ons, like all-natural rash cream. Wholesome Diaper Co. has generated $75,000 in revenue to date and provides its subscription box services to more than 40 families in the greater Milwaukee area. Now the company has a much bolder vision after being featured in a March episode of “Project Pitch It” on WISN-TV Channel 12. Over the past several months, families have reached out asking the startup to extend their services to smaller cities around the state and outside of Wisconsin, Austin said. “One of the things we’re working on is to franchise in multiple locations both in and outside Wisconsin,” Austin said. “We want people to have these resources because we really have seen an interest.” n
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the
Interview
MILWAUKEE-BASED short-term rental company Frontdesk is among the fastest
growing companies in the country. Last month, it ranked 136th on the 2021 Inc. 5000 list of America’s fastest growing companies. That news came shortly after the company closed a $7 million round of funding, bringing its total raised capital to $18 million. Frontdesk leases apartments in upscale neighborhoods and then sublets them to guests – with a focus on short-term business and personal travelers – and provides onsite management of its properties. Chief executive officer and co-founder Kyle Weatherly recently spoke with BizTimes associate editor Lauren Anderson about how the company has managed to grow despite industry headwinds. What drives your entry into a new city? “Pre-COVID, we entered a new city largely based off of the lack of sophisticated competition. There are a number of competitors in our space that seem to be fighting over the same cities – Nashville, Austin, New Orleans, etc., these gateway markets or destination markets. We saw an opportunity where there wasn’t well-funded, sophisticated competition in cities like Indianapolis, Minneapolis, Jacksonville, Tampa, San Antonio, Dallas, etc. And, for us, we wanted to go where the competition was the least developed. “In a post-COVID world, half of our competition has gone out of business, so one of the real exciting things for us is not only did we survive it, to some extent we thrived during COVID. … So, whereas half the cities I just mentioned, those weren’t interesting to us a year ago or a year and a half ago, now all the sudden, they’re very interesting to us because consumer demand is, as best we can tell, back to where it was pre-COVID … yet half our competition is now gone.”
How did you do it? How did you thrive during COVID? “In order of importance: our investors, our coworkers and luck. Our investors continued to stay with us. If they had decided to abandon ship during COVID, we would be out of business. Yet, they stayed with us. ”
What gave your investors confidence?
What are your projections for next year? “Our internal projections, which thankfully we’ve hit for the first eight months of the year, show us turning a profit in April of next year and at that point never turning back from profitably while continuing to grow at a pretty breakneck speed.”
What about the delta variant? Does that present any concerns? “Honestly, the concerns come from the human tragedy of it. Obviously, you see the numbers … “I would say, as opposed to pre-vaccine COVID, (which) had a massive effect on consumer demand, what we’re seeing right now with delta is it’s either having no effect or a minimal effect. For instance, we performed 10% above our model in June, and we performed right in line with model in July and August and it looks like we will again in September as well.” n
JAKE HILL PHOTOGRAPHY
“We were within 2% of our quarterly revenue predictions every quarter before COVID hit, and I think being as accurate as possible and as honest as possible … that built a lot of trust that, when we hit a crisis, (investors) believed what we were saying, that we were being forthright with both the risks and the opportunities. The thesis (we had) is sort of how it played out, which is: we think we can survive (COVID) and, if we can, we think the market demand will whipsaw back and that any number of our competitors will be out business.”
Kyle Weatherly Chief executive officer and co-founder Frontdesk 845 N. Farwell Ave., Milwaukee Employees: 250 stayfrontdesk.com biztimes.com / 13
BizNews FEATURE Colectivo barista and organizer Hillary Laskonis, standing with a group of fellow employees and local IBEW officials, speaks to the press about their union election win.
Some see local unionization efforts as potential workforce solution By Maredithe Meyer, staff writer THE STATE OF today’s labor market, amid lingering uncertainty about the COVID-19 pandemic, has businesses across many industries bending over backward to hire and retain staff. Whether in the form of signing bonuses, hourly wage increases or remote work flexibility, the pandemic has put the onus on employers to take better care of their people. For the hard-hit service and hospitality sector, the past 18 months has shone a spotlight on a shaky revenue model that has contributed to a standard of low pay and workplace disparities. As a result, some workers exited the industry and have not returned, leaving operators in the lurch as business activity returns to pre-pandemic levels. “There’s a lack of people willing to work in the same lowwage, no benefits, uncertain and chaotic jobs and labor markets – it shouldn’t surprise anybody. What’s surprising is that it didn’t 14 / BizTimes Milwaukee SEPTEMBER 27, 2021
explode earlier,” said Peter Rickman, president of the Milwaukee Area Service & Hospitality Workers Organization (MASH). In the past couple of years, employee-led union campaigns have popped up at food service establishments across the country, including Nani’s Kitchen, an Indian restaurant in Rochester, New York; Spot Coffee in Buffalo, New York; Tartine Bakery in California; Cork & Fork in Pennsylvania; and Slow Bloom Coffee Roasters in California. Locally, a group of workers at Milwaukee-based Colectivo Coffee have unionized under the International Brotherhood of Electrical Workers Local 494. In August, the National Labor Relations Board completed the vote count, with Colectivo workers approving a proposal to unionize by a 106-to99 vote. The move to unionize was opposed by Colectivo’s owners, but they have pledged to “respect the rules and bargain in good
faith.” Meanwhile, another local employer is looking to circumvent the ongoing workforce challenges by embracing employee unionization. Earlier this month, entertainment venue and eatery Bounce Milwaukee reopened after an 18-month shutdown – this time as a union shop. The business’s owners, Becky Cooper and Ryan Clancy, were the ones pushing the unionization effort and actively sought union representation for their employees – a rare move for an employer and one driven by their concerns over how workers across the service sector industry were treated, even prior to the pandemic. Under what was announced in July as a “landmark” labor and workforce agreement, Bounce Milwaukee has granted union representation to its employees through MASH, which also represents service employees at Fiserv Forum and Deer District.
In return, MASH has helped the business staff up by funneling qualified candidates through a digital hiring hall. Over the course of a couple weeks, the business was fully staffed with 15 employees, mostly new hires. The option to join a union was a huge draw for many who applied, along with an increased hourly wage to $15, said Cooper. “We got inundated with applications,” she said, adding that all but one candidate showed up to their scheduled interview, and almost everyone who came in for an interview was hired. “Even applicants for the general manager position, who wouldn’t be part of the bargaining unit, were really excited and enthusiastic about working for Bounce with a union,” she said. “I think it’s indicative of people who want to be in the service industry. They are looking for an employer who they know is going to be fair, is going to take any issues seriously, and for those management applicants … we have a structure in place for handling difficult issues through the union. I think it makes their job easier.” The 14 employees eligible to be part of the bargaining unit all signed their union membership cards prior to Bounce’s reopening. From there, the plan was to sit down as a full staff to draft a contract for negotiation and likely swift ratification by Cooper. Despite its early success, Bounce’s move to unionize hasn’t had much luck drumming up support – or even dialogue – from other local business owners.
Cooper has developed relationships with many local restaurant owners who are on a similar page when it comes to taking care of their employees and addressing workplace disparities. But when Bounce announced its partnership with MASH and later shared its progress via social media, Cooper said they heard radio silence from their local industry peers. “We see other people in the industry, ethical employers, moving to the One Fair Wage practices and raising their pay,” Cooper said, but shrinking margins – due to rising food costs and surging demand from customers – as well as lingering uncertainty about the pandemic likely stand in the way of considering the same path. Taking the leap to unionize was scary for Bounce Milwaukee, too, but someone had to do it first, she said. “I do want to open people’s
eyes to the fact that this is a great way to address these issues … I’m hoping that in a year when we say, ‘hey, look how great this has worked,’’ then we’ll start having the conversation. Maybe we need to be that example,” said Cooper. Since the announcement that Colectivo Coffee employees voted to unionize, organizers have fielded a national response. Groups of workers from across the U.S. have reached out with questions about the organizing process and how to start their own campaigns. It’s a different story locally. Hillary Laskonis, a barista at Colectivo’s Humboldt Avenue location and employee organizer, said she doesn’t know of any Milwaukee-area workers that have reached out. Hesitancy to join a union, whether it’s the employees within her own organization or others, may in part be due to the nature of the job.
The Wisconsin Athletic Club saw membership down and COVID related costs on the rise. We, at First Midwest Bank, were ready to assist with ideas and options allowing the gym to bounce back stronger.
“In industries like ours where there is a transient work population, I think that does end up creating a barrier for workers organizing,” she said. But she hopes efforts to make Colectivo into what would be the largest cafe workers union in the country, according to IBEW, will spark more union momentum among local service workers. “It would be phenomenal to have other local companies approach us and also take on unionization at their workplace,” said Laskonis. “If more workers chose to unionize, I think that would benefit a lot of vulnerable populations and the community at large.” Unionizing is not a one-sizefits-all solution to ongoing labor issues, says Kristine Hillmer, president and chief executive officer of the Wisconsin Restaurant Association, which does not take an official stance on unions.
“We appreciate that each operator has a choice on how best to run their business and interact with their employees. … Regardless of their status, we encourage our operators to build an internal culture so they become a preferred employer for those seeking jobs. This also is key for retaining their current employees who are a valued part of that culture and team,” Hillmer said in an email. Beyond the long-standing division over labor unions, Rickman envisions a world where employers across the service sector establish and adhere to common standards for all employees, regardless of part-time or full-time status – including centralized hiring and training pipeline, benefits, and enforcement of set standards. “Let businesses compete on everything else other than how much they can sweat labor costs down,” he said. n
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Fall and winter forecast for downtown Milwaukee hotels a mix of dark clouds, rays of hope
16 / BizTimes Milwaukee SEPTEMBER 27, 2021
Hilton Milwaukee City Center in downtown Milwaukee.
AS DOWNTOWN MILWAUKEE’S hotels shift from the busy summer season to the fall and winter months, industry experts see a mix of dark clouds and bright spots on the horizon. Milwaukee was not spared from the economic calamity brought on by the COVID-19 pandemic last year. But the summer of 2021 brought life back to the local hotel market, thanks to the return of leisure travel. Greg Marcus, chief executive officer of Milwaukee-based Marcus Corp., said his company’s hotels returned to near-2019 levels this summer, after taking a big hit for much of last year. Marcus Corp. owns three downtown Milwaukee hotel properties, including Hilton Milwaukee City Center, the Pfister Hotel and Saint Kate-The Arts Hotel. They benefitted from major sports events, such as the Bucks’ NBA championship run and the Ryder Cup, as well as the return of small events like weddings. But the company is also expecting the usual seasonal slowdown of business in the coming months, which could be further compounded by a continued absence of business travelers. “In a way, we’ve seen some
BIRD’S EYE VIEW: A S C E N T M A K E S ITS ASCENT Ascent is a 25-story apartment building under construction at 700 E. Kilbourn Ave. in downtown Milwaukee. But it will be more than just another luxury apartment tower. The project is putting the city on the map as home of the world’s tallest hybrid mass timber structure. Its construction commenced just over a year ago. It will stand 284 feet tall and contain 259 apartments, indoor parking, retail space, a swimming pool, a fitness center and a top floor of amenities. Ascent is being used as a model by the Wisconsin Department of Safety and Professional Services in its efforts to make mass timber construction easier via an update to the state’s commercial building code. The building is being developed by New Land Enterprises, designed by Korb + Associates Architects and built by C.D. Smith Construction Inc. and Catalyst Construction.
LION’S TAIL BREWPUB IN WAUWATOSA Lion’s Tail Brewing Co., a Neenah-based brewery, plans to open a second location in Wauwatosa. It plans to redevelop the former Wisconsin Garden & Pet Supply building, located northeast of West North Avenue and North 86th Street, into a brewpub. There, it will employ up to 22 workers and brew as many as 2,500 barrels of small-batch craft beer per year. The brewpub will feature an outdoor beer garden in the existing covered greenhouse space. It is planned to open first as a taproom only while buildout work of the brewery and production space is ongoing. It would then be fully operational with a year. SIZE: 4,615 square feet OWNER: Lion’s Tail Brewing Co. ARCHITECT: Galbraith Carnahan Architects
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30% range. Hanis also found another positive in the market data. Average daily rates, meaning the price hotels are charging for overnight stays, were about the same or even higher in some weeks relative to 2019. Average daily rates between August and early September hovered between $150 per night to nearly $174. This compares to 2019 rates that ranged between approximately $153 and $167. This trend can be observed nationally, and it shows hotels were confident enough in the market to keep rates high, Hanis said. “As a result, revenue may not be down as much as occupancy would be if they had discounted rates,” he said. Also impacting hotel business has been a shortage of workers, which has led hotel operators to make tough decisions about their operations, Nysse said. “What hoteliers are looking to do is both reduce labor costs by reducing employees through eliminating or removing amenities,” he said. Reduced services could take the form of less frequent room cleanings or suspending certain food and beverage offerings. As the warm weather recedes, and leisure travel with it, Hanis summarized the hotel market this way: “The skies have turned cloudy, but we don’t know if there’s a rainstorm coming or if it’s just a cloudy day, and we’ll have to work through it in the fall,” he said. “We don’t know the true long-term effect.” n
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recovery,” Marcus said during a recent Milwaukee Press Club event. “But now we’re not going to see as much recovery as you go into the fall and into the winter because we’re not going to have the business travelers.” Milwaukee hotels usually turn their attention to business travel at this time of the year. But COVID-19 – and more recently the delta variant – is still keeping them away. “What’s been going on with the delta variant, many businesses large and small alike have postponed their return to office, which has given less reason for a business traveler to go and make a sale, (or) catch up with a customer if that customer is not going to be in the office,” said Doug Nysse, a hotel industry expert and director of project and development services at Colliers | Wisconsin. Prevailing industry thinking is that corporate travel, once expected to return in a meaningful way by fall, may be pushed back toward the beginning of 2022, said Greg Hanis, hotel industry analyst and president of New Berlin-based Hospitality Marketers International Inc. This may be acceptable for markets where the weather is warm and hotel demand doesn’t slow in the winter, but it could mean Milwaukee won’t see any real increase from that market segment until late spring. “I think that’s going to be a real big question mark for the hotel (industry) recovery,” Hanis said. A review of hotel industry data shows downtown Milwaukee hotels are filling more rooms than last year but are still lagging pre-pandemic levels. According to market data from Hendersonville, Tennessee-based STR Inc., downtown hotels were between 50% and 60% occupied from early August through the week of Aug. 29-Sept. 4. That’s a way off from the same period of 2019, during which hotels were at least three-quarters occupied, minus the beginning of September (66%). But it was an improvement from 2020 numbers, when occupancies were in the
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STORY COVER
FINANCIAL STRAINS THREATEN TO CRIPPLE UWM’S DUAL AMBITIONS Challenges mount in funding research, access missions at state’s second-largest university
BY LAUREN ANDERSON, staff writer IN FALL 2019, University of Wisconsin-Milwaukee leaders celebrated the conclusion of its $251 million campaign, the culmination of a seven-yearlong fundraising effort. The appeal generated large gifts from some of the region’s most prominent business leaders, including Marianne and Sheldon Lubar with their $10 million donation to establish a new entrepreneurship hub, a $5 million contribution from Mary and Ted Kellner to support faculty and scholarships, and millions from Rockwell Automation and Microsoft Corp. to support the new Connected Systems Institute. Sheldon Lubar, the founder of Milwaukee-based private investment firm Lubar & Co., made a strong case for investing in the university while garnering support for the campaign in 2018: “I believe there is no more important institution in Milwaukee and the state than UWM.” But just six months after confetti rained on UWM’s Panther Arena in celebration of the quarter-billion-dollar fundraise, campus leaders were forced to move classes online, send students home and shut down in-person activities in response to the threat of COVID-19. Revenues took a roughly $9 million hit during the upended spring 2020 semester – pandemic-related losses eventually swelled to nearly $92 million, offset partially by federal relief aid. UWM welcomed students back on campus with masking and mitigation procedures in fall 2020, but the headwinds pummeling the larger higher education sector over the past 18 months have laid bare the unique challenges facing Wisconsin’s second-largest university. The school’s comprehensive campaign advanced major initiatives and improvements to campus, but for a university that straddles what many consider to be two important yet resource-heavy ambitions – to produce top-tier re18 / BizTimes Milwaukee SEPTEMBER 27, 2021
search and provide broad higher education access to the region’s under-served students – structural financial challenges threaten its ability to sustain both of them. A report published this summer by the Wisconsin Policy Forum drew attention to the confluence of factors that has reshaped UWM’s financial outlook, including declining enrollment, lagging state support and an eight-year tuition freeze. Compared to its public urban university peers nationally, the report found, almost none face “such stiff challenges.” COVID has exacerbated existing issues, but university leaders had already been sounding the alarm for years prior to the pandemic. “On the one hand, we matter,” UWM chancellor Mark Mone said of the report. “We’re doing significant, incredible things. If you just stand back and look at the data: the number of students, 200,000 alumni, and how many of our students go into high-deMONE mand, high-growth areas in the state of Wisconsin. So, we matter. But we’re in peril.”
DUAL MISSIONS UWM has faced a tall order from the start. The university traces its origins back to the Normal School of the late 1880s but took its current form officially in 1956 following a political debate over the need for a major university in the state’s economic center. If the city was going to be great, supporters reasoned, it would need a great public university. The access-versus-research debate came into focus in the 1990s. The contraction of the region’s manufacturing sector gave rise to existential ques-
tions: Should the university focus on promoting economic development through research or on educating disadvantaged and underemployed residents to help them engage in a changing economy? Leaders chose both, doubling down on the university’s double mission. Of all UW System schools, UWM today serves the largest number of Black, Latino and Southeast Asian students, which together make up a quarter of its student body. More than a third of its enrolled students are the first generation in their family to go to college. A response to significant disparities among white, Black and Hispanic students’ graduation rates, UWM made a public pledge last year to eliminate those equity gaps by 2030. Meanwhile, a concerted push to bulk up its research efforts – spearheaded under former chancellor Carlos Santiago in the mid-2000s – culminated in UWM becoming a “R1” research institution in 2016. Previously, UW-Madison was the only institution in the state to hold that status, the highest given by the Carnegie Classification of Institutions of Higher Education. Some UWM supporters dismiss the access-research dichotomy altogether, arguing the region needs both. “People that are setting up that strawman are dead wrong,” said John Torinus, chairman of West Bend-based Serigraph and a UWM Research Foundation board member. But research and educational equity require significant investment, and they are now at risk due to underfunding.
STATE SUPPORT Supporters have long argued UWM is gravely underfunded. Stacked up against its peers nationally, UWM’s state tax funding is relatively low. Among 14 similar urban research universities nationally, its per-student state funding in 2019 was the third lowest, according to the WPF report. When its state
JAKE HILL PHOTOGRAPHY
Panther statue on UWM’s campus. biztimes.com / 19
STORY COVER
Lubar Hall on Maryland Avenue.
funding is combined with tuition and fee revenue, UWM received the second lowest among its peers. While state per-student appropriations to UWM have grown in recent years, that is partly due to its drop in enrollment, WPF said. Comparisons within Wisconsin are often drawn between UWM and the state’s flagship school. UWM receives $5,351 per student from the state, compared to UW-Madison’s $9,108, according to the Center for Research on the Wisconsin Economy. Asked about that disparity during a recent WisPolitics interview, UW System president Tommy Thompson said the funding allocations reflect the higher expenses associated with running the Madison campus, which includes a medical school and hospital system. UWM’s 2020-’21 budget was $677 million for its roughly 24,000-student cam20 / BizTimes Milwaukee SEPTEMBER 27, 2021
pus, compared to UW-Madison’s $3.4 billion for its 45,500 students. Changing the formula that determines how money is divided among UW schools would first depend on the Republican-controlled Legislature releasing more funds to the UW System, Thompson told WisPolitics. Several Republican state lawmakers declined requests for comment about the funding formula. “You cannot change the reimbursement to campuses when there’s no extra money,” Thompson said. “… If the Legislature gives extra money, then I think we should take a look at the distribution percentages and how we could do it to be more equitable. I would love to do that. But you can’t take away from Madison and give to Milwaukee, just because they’re different. They have a different responsibility; they’re different schools.”
Though growing, UWM’s $113 million endowment is also dwarfed by Madison’s $3.2 billion fund, a product of UWM’s relative youth and size. Among 11 comparable public research institutions examined in the WPF report, UWM’s endowment was more in line with its peers though still the second smallest of the group. “It takes so long to build up a larger base of that external funding. We just haven’t been around long to enough to build up the sort of base that a flagship institution can do,” said Robin Van Harpen, vice chancellor of finance and administrative affairs at UWM. It’s often argued that Milwaukee and Madison are fundamentally different – two schools with two distinct missions. But the perpetuation of long-held perceptions of prestige, which some say are reinforced by a state funding formula that
JAKE HILL PHOTOGRAPHY
ENROLLMENT TRENDS
prioritizes the flagship campus, means UWM is often relegated to second place in the public eye, supporters say. UW-Madison is the 14th highest ranked public university in the U.S. News & World Report annual college rankings. UW-Milwaukee doesn’t appear in the rankings. “UWM becomes a stepchild, it becomes an afterthought, it becomes a backup school” in people’s minds, former United Community Center executive director Ricardo Diaz said, noting that’s not the case with Michigan’s two primary public DIAZ universities, the University of Michigan and Michigan State University.
Many universities across the Upper Midwest and Wisconsin have experienced drops in enrollment in recent years, a reflection of declining birthrates and fewer students completing high school overall. Higher ed institutions were already bracing themselves for a demographic cliff in 2025, when they are projected to see a downturn in the college-going population – a trend that traces back to Great Recession-era birth trends. But colleges are now facing that drop-off five years sooner than expected due to the pandemic. UWM’s losses prior to the pandemic were worse than others in the state and most of their national peers, WPF said. Enrollment at the main campus has fallen 21% since its peak of 25,035 full-time equivalent students in 2010 to 19,711 in fall 2020. The decrease has nearly offset the rapid growth UWM saw in the decade prior. UWM’s fall 2021 semester enrollment numbers haven’t yet been certified. The enrollment decline – paired with a tuition freeze that’s been in place since 2013 – has caused UWM’s tuition balances to decrease nearly by half, from $57 million to $29 million, over six years, according to WPF. “This drop (in enrollment) has sapped UWM of a critical stream of revenues during an already difficult time, compounding the painful effects of stagnant state funding and the tuition freeze,” the policy forum said in its report. Tuition-setting power is now held by the UW System Board of Regents, which has not yet indicated it plans to lift prices. The WPF report points to the decrease in students completing high school in the greater Milwaukee area over the past decade as one explanation for UWM’s declining enrollment. Students completing public high school in the five-county greater Milwaukee area dropped by just over 2,000 students between 2012 and 2020. Meanwhile, at a time when attitudes around higher education are shifting, universities like UWM are increasingly being forced to answer the question: What’s the value of a four-year degree? “We have to do a better job showcasing exactly what UWM does, in terms of the opportunities our students have and job offers and the average starting salary and occupational demand. That’s on us,” said Mone. Bucking trends within the UW System, UW-Madison has seen a 10% enrollment increase over the past decade. WPF’s report argues the flagship university’s prestige may have insulated it from some industry headwinds. With a smaller college-bound pool to draw from, Van Harpen, said campuses like UWM don’t have as many options to draw in more students. “We don’t have that lever of choosing to admit more or fewer in order to maintain enrollment. We don’t have that because our doors are pretty wide open, which is why over several decades prior to the last decade, we grew exponentially,” she said. “We were serving more students because our mission is
access. Now, with the decline in overall population, it’s not surprising to see access institutions lose market share, because other institutions that are more selective are opening the doors wider, choosing to admit more students.” While the number of white students across UWM’s three campuses has fallen nearly 7,100 (30%) over the past decade, enrollments of students of color have increased by 1,179. That trend has been driven largely by Latino students and those reporting two or more races, both having increased by 70% since 2021. The number of Black students fell 570 students over those years. Diaz noted that the majority of students coming out of the Milwaukee-based United Community Center who continue on to post-secondary education attend UWM, and the university has bolstered its support in recent years to help Latino students attain their degree. “If the growth in the Milwaukee Latino community were not as prevalent as it is today, UWM’s enrollment would be much lower,” he said. Diaz has supported UWM’s efforts to gain federal Hispanic-serving institution status. Milwaukee Public Schools, meanwhile, has seen a decrease in students going on to attend UWM in recent years, waning from 301 students in 2013 to 232 in 2019, with a steep dropoff to 145 students in 2020. While the pandemic and overall MPS enrollment rates have contributed to that trend, district leaders said students are also increasingly looking outside the state as MPS has bolstered its relationship to Historically Black Colleges and Universities. More students have also been attracted to Milwaukee Area Technical College since the launch of its free-tuition Promise program five years ago. Promise programs – “last-dollar” programs that make up the difference for low-income students’ tuition after federal and state aid is applied – are being offered by a growing number of Wisconsin schools, including many tech colleges and some four-year schools, including UW-Parkside and UW-Madison. Mone said bringing a Promise program to UWM was his “top request” for the current state budget, but it wasn’t ultimately included. “If we had received that, if that were built into the budget, that would be the biggest game changer that could happen to not just UWM but other campuses that have a large number of under-represented students,” he said. Without state assistance, a free-tuition program for low-income students at UWM would require a significant amount of philanthropic funding, Van Harpen said. A third of UWM’s students are eligible for Pell Grants, federal need-based aid tied to a students’ household income. By comparison, 12% of UW-Madison students are Pell eligible. “We have been driving more money into need-based scholarships, but we just haven’t biztimes.com / 21
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STORY COVER
gotten all the way to offering a Promise program,” Van Harpen said. “We’re getting closer, and every year we divert more money. … At the scale we’re at, it’s a large dollar amount to make up a complete Promise program like at Madison. But we’re still working towards it.”
PLAYING TO ITS STRENGTHS Milwaukee leaders say there are opportunities for UWM to lean into what makes it distinct. Gale Klappa, chairman of Milwaukee-based WEC Energy Group and a co-chair of UWM’s past two comprehensive campaigns, said the university is particularly effective at industry partnerships. His own company, which owns We Energies and Wisconsin Public Services, works with UWM’s meteorology department to KLAPPA help its teams forecast weather events and know where to place crews ahead of a storm. “Knowing more precisely when those storms are going to hit can not only save restoration time but save the company millions of dollars in terms of timing in which we stage our crews and organize our restoration efforts,” Klappa said. “We have historically subscribed to UWM’s private weather service, and … because of the greater understanding, the local understanding – particularly of the impact of the lake – on the timing of storms, we found that UWM’s meteorology and more precise forecast are really the best we can get.” UWM has struck several new noteworthy partnerships with area companies in recent years to grow the region’s talent. It’s teamed up with Marquette University and Northwestern Mutual on a data science institute that has students working on real-world problems using insights from data, with the goal of producing more Milwaukee tech talent. Its Connected Systems Institute – a collaboration with industry partners including Rockwell Automation, Microsoft Corp., WEC Energy Group, A.O. Smith and others – is designed to help manufacturers take advantage of Industrial Internet of Things technology. Torinus said UWM has positioned itself as a hub for entrepreneurial activity, saying it’s 22 / BizTimes Milwaukee SEPTEMBER 27, 2021
The fountain on the UWM campus.
become a central part of the university’s strategy over the past 20 years. Within that time, the number of patents coming out of the university has grown from one to 121, and it’s spun out 15 companies. “We’re just getting started,” Torinus said. “It’s a good start but a relatively new start.” UWM is also unique in the sheer number of graduates it produces – roughly 5,300 annually – about 75% of whom stay in the Milwaukee region. “From Manpower to Northwestern Mutual to Rockwell to you name it – there’s a very, very strong presence of UWM grads in all of our companies,” Klappa of WEC Energy said. The university’s position as an access institution is part of the answer to region-wide workforce equity goals, Milwaukee leaders say. The Metropolitan Milwaukee Association of Commerce’s Region of Choice initiative, for example, aims to address Milwaukee’s massive gaps in African American prosperity and Hispanic prosperity. “Here’s an institution that really does matter,” Mone said of UWM. “It’s at a scale and a level of impact and quality that really provides diverse talent that you don’t get at a lot of other institutions in the state of Wisconsin. When we talk about MMAC’s Region of Choice, where is that diverse talent going to come from? How are organizations going to achieve 25% delta in Black and brown populations in their leadership? Where are they going to get 15% more of a diverse workforce?”
RESEARCH STATUS Today, UWM and UW-Madison are among 130 research institutions nationally – and the only two in the state – to hold the “R1” status. Leaders say UWM’s research status benefits area companies. “Whether it’s GE, Johnson Controls, Clarios, or others that really focus on energy, batteries or the types of things we’re doing with smart manufactur-
ing, with Connected Systems, these things help companies in their global competitiveness,” Mone said. “That’s the value of the research university at scale.” But after years of declining research spending, UWM’s status is now at risk. R&D spending at UWM has fallen over the past decade, from $61.2 million to $53.8 million from 2011 to 2019. The peak was in 2010, when the university had 834 faculty numbers. Today it has about 720. Fewer faculty means fewer people competing for outside funding, and in recent years, the university has lost some key professors – either to retirement or other universities – who drew in external research funding, the WPF report noted. UWM trails most of its peers in faculty compensation; its average salary for faculty of all ranks was second lowest of 15 similar universities studied by WPF. “We have been poached dramatically,” Mone said. “It’s significant.” Despite its fiscal challenges, Mone said he refuses to choose between UWM’s missions. He’s heard the debate over which should be prioritized for years but says leaders are committed to both access and research. “As chancellor, I will never let either of those go,” he said. “Now, the bigger, more practical issue is can we maintain that level (of funding)?” Klappa argues the increased clarity around UWM’s mission in recent years is itself a sign of progress. Part of the path to greater financial sustainability is owning what the university is – and what it isn’t. “In many ways, as the Milwaukee region goes, so goes Wisconsin,” Klappa said. “The challenges are clear, but I think the will is there. And over time, as UWM has refined its mission and been very clear about it, I think there will be success going forward. There has to be. I can’t see a thriving Milwaukee region without a thriving UWM.” n
Special Report ENTREPRENEURSHIP & FAMILY BUSINESS
MobCraft Beer aims to expand to 10 locations by 2025 A MILWAUKEE BREWERY known for its crowdsourced craft beer recipes aims to take its business model across state lines with plans to open as many as 10 locations by 2025. MobCraft Beer Inc. has targeted three immediate locations for expansion, including Waterford, Denver, and Woodstock, Illinois. The brewer’s growth plans coincide with a $2.25 million Wefunder campaign through which it hopes to attract investors to help finance new locations. Since 2013, MobCraft has generated a loyal following by tapping into the ideas of its fans to brew outrageously flavored beers, like its Fruity Pebble cereal-inspired milkshake IPA or its cranberry-infused farmhouse ale. Each month, MobCraft crowdsources beer flavor ideas from its followers and then brews top picks based on votes cast through its website and social media. The Walker’s Point tap room and brewery also produces several flagship and seasonal brews, churning out approximately 3,000 barrels of beer each year, said Henry Schwartz, MobCraft founder and chief executive officer. With its planned expansion, the brewery hopes to replicate the systems, processes and environment of its existing taproom in other cities while growing its sense of community and emotional connection to the brand through its crowdsourced brewing model. Known for making the beverage dreams of beer connoisseurs come true, MobCraft is turning to its fans once again to make its own dreams come true by offering 28% ownership in the company. “We want our fans to be owners of the brewery,” Schwartz said. “We want people who love MobCraft to own a share of it and, as the company continues to grow, reap those benefits of being an owner of the brewery.” The new taproom and breweries will have a much smaller production capacity, allowing MobCraft to produce experimental brews in smaller volumes. With these smaller batches, MobCraft can partner with nonprofits to produce causebased beers or collaborate with musicians and graphic artists on new beverages and can designs, Schwartz added. “My philosophy behind beer is that it’s such a powerful thing to bring people together to debate, to laugh and to cry over, and a lot of ideas happen over a pint of beer,” Schwartz said. “Many of these ideas we can turn into something greater, larger and more impactful through beer, and that’s what we’re hunt-
PHOTO COURTESY OF MOBCRAFT
BY BRANDON ANDEREGG, staff writer
MobCraft Beer Inc. produces about 3,000 barrels of beer each year out of its Walker’s Point headquarters at 505 S. Fifth St. in Milwaukee.
ing to do with a lot of these smaller pilot batches.” Despite record sales for beer, wine and liquor in Wisconsin during the COVID-19 pandemic, 2020 wasn’t a great year for craft brewers. In fact, a Brewers Association report suggests craft brewers faced their most challenging year in decades. The craft brewery industry produced 23.1 million barrels of beer in 2020, a 9% decrease from the year prior, according to the BA, a not-for-profit trade association representing small and independent American craft brewers. The overall American beer market dropped 3% by volume in 2020, although the report did not include flavored malt beverages and hard seltzers. “2020 was obviously a challenging year for many small brewers, but also one that proved their resilient and entrepreneurial nature,” Brewers Association chief economist Bart Watson said in the report. “In a year where U.S. draught sales were down more than 40%, small brewers found new ways to connect with their customers and keep their businesses running.” MobCraft also faced cashflow challenges throughout the pandemic and at one point considered furloughing employees before federal Paycheck Protection Program dollars arrived. But it also turned to innovation to keep its business alive. MobCraft was able to reduce its revenue losses by releasing advent calendars, a 24-pack featuring a combination of its core craft beers in addition to seasonal, limited release and oak/spirt barrel-aged beers. Following its launch, beer drinkers, bars and li-
quor stores purchased the advent calendars by the hundreds, with MobCraft selling more than 2,000 last year. Heading into the holiday season, MobCraft has more advent calendars on pre-order than it sold in 2021, Schwartz said. “We were able to generate $100,000 in revenues in the middle of the pandemic, which was awesome and kind of helped keep us alive,” Schwartz said. “Not only was it a year ago that we launched (the advent calendars), but it was also a year ago that we came up with them.” After a rocky start to 2020, Schwartz reevaluated the brewery’s business model, prompting MobCraft to set forth new plans for growth by expansion. The company is targeting failed or unique locations for new operations throughout the Midwest where it knows a core following exists, Schwartz said. In Woodstock, MobCraft will convert an 1880s sheriff’s house located off the city’s town square into a brewery and taproom by 2023. The Waterford location calls for converting an old fire station into a brewery, taproom and event venue, which will open by 2022. The Denver location was a failed restaurant and brewery adjacent to a craft brewery hotspot in the city called River North. Those plans include a restaurant, brewery and taproom slated to open later this year. The new locations follow a broader growth plan to open two locations per year for the next five years, Schwartz said, adding that MobCraft is looking at Madison, the Fox Valley and Chicago suburbs for its next expansion. n biztimes.com / 23
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The founder and former CEO of the Dollar Shave Club was a pioneer in the direct-to-consumer sector and oversaw explosive growth before selling his men’s grooming company for $1 billion to consumer product giant Unilever. His comedic and offbeat commercials went viral, earning him respect as one of the most innovative marketers in business.
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THE METROPOLITAN MILWAUKEE ASSOCIATION OF COMMERCE’S annual Focus on the Future Awards program recognizes the very best of small businesses, startups, nonprofits and diverse businesses across southeastern Wisconsin. In the spirit of the MMAC’s former Future 50 awards program, the organization honors the contributions of these businesses and organizations to strengthen the Milwaukee region’s economy. The winning companies were announced during a luncheon on Sept. 24 at the Italian Community Center in Milwaukee. This year’s Focus on the Future Awards were broken down into these categories: TALENT – Recognizes companies or organizations improving retention rates, cultivating a cohesive company culture, upskilling employees or with other unique workforce accomplishments. GROWTH – Recognizes the success of companies or organizations finding new opportunities, entering new markets or developing new products. LIVABILITY – Recognizes companies or organizations helping to make metro Milwaukee a better place to live, work,
play and learn through products and services. EQUITY – Recognizes companies or organizations addressing racial disparities, one of the Milwaukee region’s biggest challenges, through the attraction of a diverse workforce and cultivation of an inclusive workplace culture. INNOVATION - Recognizes companies or organizations for bringing big ideas to market.
For each category, three finalists were named and a winner was selected from one of those three. Others received “honorable mention” recognition for each category. Following are profiles of the winners and finalists for each category.
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TALENT : GROWTH : LIVABILITY : EQUITY : INNOVATION :
On behalf of Milwaukee’s business community and everyone at the Metropolitan Milwaukee Association of Commerce, I would like to congratulate this year’s Focus on the Future awards winners, finalists and honorable mentions. We’re proud to recognize the great work of so many companies, business leaders and employees throughout the Milwaukee Region who have taken on significant challenges and skillfully adapted to take advantage of opportunities. We’re inspired by the achievements of the companies we’ve honored with these awards, and their success gives us even more reason to be optimistic about the future of Milwaukee. The MMAC’s mission is to improve metro Milwaukee as a place to invest capital, grow business and create jobs. If you’re already an MMAC member, thank you for your investment – our work would not be possible without you. If your company is not yet a member, we would love the chance to talk to you. Sincerely,
President, Metro Milwaukee Association of Commerce mmac.org
First Midwest Bank is honored to be the presenting sponsor of the MMAC’s Focus on the Future program. We are passionate about supporting innovative businesses and their leaders by providing a relationship-banking approach that starts with a common goal – your success. If your plans call for a banking partner who works hard alongside you, we would love to hear from you. We have been serving the southeastern Wisconsin market for more than 100 years. We continue to grow with our community to better support you, and we couldn’t be more excited about the future. Congratulations to all the honorees of 2021. Our community is stronger because of your creativity to pivot and thrive during the past year. Enjoy the recognition. You have truly reached a memorable milestone.
Jerry Schlitz Senior Vice President / Commercial Sales Manager, First Midwest Bank 414-270-3234 | Jerry.Schlitz@FirstMidwest.com
Complete Office/Emmons Business Interiors is proud to support the Focus on the Future initiatives for 2021. As a growing, local business, we understand the level of commitment and amount of effort it takes to succeed and thrive, particularly during these difficult times. These companies have proven that it CAN be done and they should be commended! We look forward to honoring this elite group of entrepreneurs and support them as they continue to make Milwaukee a great place to own and operate a business. Congratulations to all nominees and a special thanks to the BizTimes for recognizing the achievements of so many.
Ron Beam CEO – Complete Office of Wisconsin/Emmons Business Interiors 26 / BizTimes Milwaukee SEPTEMBER 27, 2021
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CELEBRATING THE SUCCESS OF MILWAUKEE BUSINESSES
Southeastern Wisconsin's Local Relationship-Based Bank First Midwest Bank supports innovative businesses that make an impact in southeastern Wisconsin. We would like to recognize Milwaukee businesses for their creativity in pivoting during these unusual times. We are especially proud of the First Midwest Bank clients who were honored: • • • • •
Educational Credential Evaluators, Inc. Hunger Task Force Great Lakes Roofing Beyond Vision SRH Marketing
414.466.8000 | FirstMidwest.com
TALENT
WINNER
BEYOND VISION Milwaukee Industry: Manufacturing Hope. Independence. Pride. Those are words Jim Kerlin uses to describe Beyond Vision, a Milwaukee-based, self-funded social enterprise that provides employment opportunities for the blind and visually impaired. “Most people don’t understand blindness,” said Kerlin, president and chief executive officer of Beyond Vision. “They’re visually impaired, they’re not dumb … they can do anything you and I can do if they have the right tools.” Kerlin said the reality is 70% of those who are visually impaired can’t find work. “The unspoken truth is when they walk through the door on an interview, as soon as somebody sees the cane or the guide dog, excuses start to happen and it’s just based on unfounded fears. The average person doesn’t understand blindness,” Kerlin said. “It’s a greatly overlooked workforce,” he added. Beyond Vision provides customer care, machining, assembly, packaging and website accessibility testing for a range of customers, from the state and federal govern-
ments to major brands like Harley-Davidson and Briggs & Stratton. Serving those customers requires a focus on running a quality business. Kerlin said Beyond Vision uses the phrase “no margin, no mission.” The mission is all about helping the visually impaired grow in their careers. “We use the analogy that Beyond Vision is a runway,” Kerlin said. “It’s a place to land or it’s a place to grow.” Take the example of the company’s Beyond Vision employees. accessibility coordinator who started in assembly and packaging doing light manufacturing. He later moved into machining and then Beyond Vision makes a point of paying market comthe call center. After trying out sales, the employee land- petitive wages to all employees and invested significantly ed in his current role. in its enterprise resource planning system to make it ac“He’s like a rockstar,” Kerlin said. “He goes everywhere cessible to all employees, opening up more opportunities in the company and works on overcoming the status quo for blind employees in every department. of ‘this can only be done by a person with vision.’ We don’t Asked to describe the company culture, employaccept that.” ees described a business focused on teaching, trainAnother employee came to the company after losing ing, hiring and promoting with everyone pulling in the her vision. The first time Kerlin met her, he could tell she same direction. was insecure about her recent vision loss, but she has “I am not looked at as blind,” one employee said. continued to grow with the company and is now a call “There is no difference between sighted and non-sightcenter supervisor. ed people.” n
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ulations! t a r g TO ALL HONOREES Con IN THE TALENT CATEGORY
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TALENT
FINALISTS LUTHERAN SOCIAL SERVICES OF WISCONSIN AND UPPER MICHIGAN Milwaukee Industry: Nonprofit social service You might expect to find the employee engagement practices used by Lutheran Social Services of Wisconsin and Upper Michigan at large, for-profit companies, but the organization sees them as unique within the nonprofit and social services sectors. LSS provides help for children and families, those with mental health and substance abuse disorders, disabilities, refugees and those needing housing assistance. The organization serves roughly 30,000 people in a year with nearly 900 employees helping people in more than 600 communities. The organization places a strong emphasis on training and development for employees. New hires complete a robust onboarding process, including specific training programing in LSS’s learning management system. New leaders receive additional support through a leadership-focused training curriculum. In part because it serves a diverse community, LSS prioritizes recruiting diverse candidates through partnerships with community-based organizations. The organization also offers mindfulness training to employees to support self-care and physical, mental and emotional health. All of LSS’s development and training efforts have paid off. In the past 18 months, the organization has been able to fill 20% of its open positions with internal hires, including 80% of leadership roles.
MKE TECH HUB Milwaukee Industry: Technology In 2020, the MKE Tech Hub moved quickly to launch a virtual internship program in response to the COVID-19 pandemic. Since then, the organization’s Tech Talent Accelerator has been working to take things to another level. The result was a 100% scholarship-funded summer program for students that focused on the ethics and impact of data and artificial intelligence. Students tackled questions like how to use AI, data science or natural language processing to improve automated manufacturing systems, the accuracy of basketball statistics, assessment of commercial lending risks and overall customer experience. The program was based on the future talent needs of employers, and those needs were turned into a curriculum by a senior university lecturer. The curriculum eventually became the first badge accepted by the Higher Education Regional Alliance, a consortium of colleges and universities in southeastern Wisconsin. Students for the program were recruited through a network of referral partners to help create a diverse talent pool. Mentors also came from the community with a focus on diversity to make sure students could find a role model. The Commons executed the program. The MKE Tech Hub also created an educator workshop to extend the impact of the program beyond the 120 pre-internship participants.
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GROWTH
WISCONSIN CENTER DISTRICT Milwaukee Industry: Hospitality & Tourism Growth has been on the minds of those involved with downtown Milwaukee’s convention center basically since it opened in 1998. A second phase of the Wisconsin Center opened two years later, but a planned third phase to the north has been on hold until now. The Wisconsin Center District, the group that owns and operates the convention space and other major downtown event venues, is finally moving forward with the $420 million project. It will bring the exposition hall to 300,000 contiguous square feet and create 24 meeting rooms, at least 400 indoor parking spaces, six loading docks, an executive kitchen, and a fourth-floor ballroom with space for a minimum of 2,000 for a seated dinner plus adjoining terrace with city views. “What we found is we’re turning away as much business as we’re able to book,” said Marty Brooks, WCD president and chief executive officer. Brooks said not only will an expanded convention
WINNER center allow WCD to book larger events, it will also allow the district to book backto-back or overlapping events. That could translate to more visitors staying in hotels and spending money at local restaurants and shops. It comes at a peculiar time, as the COVID-19 pandemic not only stalled the project for a time, but also has put the entire convention business into uncertain waters. Proponents argue the expansion will keep Milwaukee competitive in the conventions business with its peer cities. It will also provide an economic boost at a time of uncertainty. Project renderings were first presented to the district board of directors in March 2020, a week before the country shut down at the onset of the pandemic. Even facing great uncertainty, board members authorized Brooks to proceed with the expansion. Construction activity recently commenced. Requirements in place will ensure the project benefits a diverse group of workers and businesses. Its inclusion goals include 25% of work be contracted to minority-owned businesses, 5% to women-owned businesses and 1% to disabled veteran-owned businesses. There’s also a 40% resident participation requirement in its construction.
A Rvsdesign and Eppstein Uhen Architects rendering of the Wisconsin Center expansion. Upon opening, the expanded convention center is expected to support 2,000 full-time equivalent jobs and attract an additional 100,000 out-of-state visitors annually. The expansion will also generate an anticipated $12.6 billion in total spending over 30 years. “One of the things we’re looking to take advantage of is (to) exploit the growth and the excitement that’s going on in Milwaukee,” Brooks said, mentioning achievements like the 2020 Democratic National Convention, Bucks’ NBA championship win and a plethora of catalytic developments happening downtown. “So much is happening in Milwaukee, and we want to be a part of bringing people to the city and keeping them here for as long as we can keep them,” Brooks said. n
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GROWTH
FINALISTS GROSS MANUFACTURING LLC
PARTSBADGER LLC
Brookfield Industry: Industrial automation
Cedarburg Industry: Manufacturing
Brookfield-based Gross Automation’s eye for growth opportunities has led to new business and civic relationships between Wisconsin and Germany. Gross Automation is a distributor of industrial automation and electrical control components, panels and systems. The relationship it built with a German manufacturer earned Gross Automation the Governor’s Export Award in 2020. The project involved three things: developing young talent, growing business and product innovation. It partnered with Germany-based EKS-Engel while attending a trade show in Nuremberg and again during a Wisconsin Economic Development Corp.-sponsored trade mission to Germany. Gross Automation, meanwhile, recognized an opportunity for students at the University of Wisconsin-Stevens Point. Students of a German-language business class needed to learn an extensive technical vocabulary and then apply current cultural and business practices. As the importer for EKS-Engle in the U.S., Gross Automation suggested they make the assignment about a real product: the PE Light. Five students and their professor met virtually each week with representatives of EKS, Gross Automation, the German-American Chamber of Commerce and potential customers. Stevens Point became the first U.S. installation of the PE Light, which resides inside of existing utility poles. Gross Automation will support further installations now that the class project has finished.
There are many words that could describe CNC machining shop PartsBadger. “Growing” is certainly near the top of the list. It accurately describes both the company’s overall growth and the procedures it has in place for the individual growth of employees. PartsBadger produces CNC-manufactured parts for just about every industry, from health care to bioscience to research and development. The roughly five-year-old company has always aimed high in an industry its founders knew was overdue for disruption. It started out with the intention to improve the quoting process through creation of an instant quote tool. At the end of its first year in 2016, PartsBadger had revenue of just over $101,000. At the end of 2020, its revenue exceeded $5.67 million, an increase of more than 5,500%. It has grown from a single full-time employee to 35. This year, PartsBadger was named to the Inc. 5000 list of the fastest growing companies in America, ranking 525th. Since 2018, it has added multiple CNC machines to increase output. It is also planning a $1.55 million, 5,000-square-foot facility expansion that will grow its workforce by 26 employees over three years. The growth rate of PartsBadger has allowed it to expand various departments over time, including sales, marketing, administration, engineering and production.
! s n o i t a l u t a Congr GROWTH TO ALL HONOREES IN THE
• Artery Ink • Brunch • DataComm Plus • Educational Credential Evaluators, Inc. • Great Lakes Roofing Corp. • Hunger Task Force • MicroSynergies • Pattyn North America, Inc. • Smart Spaces • TopLine Results Corp. • zizzl
CATEGORY
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Dayna Miller (414) 214-5809 | www.firstcitizens.com
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Congratulations Gross Automation! Your dedication to global expansion is an inspiration!
Bravo PartsBadger! Keep it growing!
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From your team at DeWitt LLP - Congratulations to everyone at Gross Automation! Waukesha State Bank (262) 549-8500 www.waukeshabank.com
Congratulations, Gross Automation! Best wishes for continued growth and success.
32 / BizTimes Milwaukee SEPTEMBER 27, 2021
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LIVABILITY
ST. ANN CENTER FOR INTERGENERATIONAL CARE Milwaukee Industry: Nonprofit St. Ann Center for Intergenerational Care in Milwaukee has been blazing trails for nearly 40 years. Founded in 1983, St. Ann Center was among the first in the nation to provide both childcare and adult day care in one center. Today, it offers childcare for infants to school-age children, a youth mentorship program for teens, and adult day care for frail elders, adults with disabilities and people dealing with dementia. In addition, the center runs a full-service medical clinic and a dental clinic for adults and children with disabilities. “(Seniors) can come here at 6 o’clock in the morning and enjoy a full day of activities, nursing care, dental care, baths, (physical therapy), (occupational therapy), speech,” said Sister Edna Lonergan, founder and president of St. Ann Center. “(We) have everything here, so a caregiver doesn’t
WINNER have to leave work and come and pick up her loved one and take them somewhere for some service. We really have it all.” Its childcare program offers early head start, after-school programs and summer camp. A core part of St. Ann Center’s mission is to bring together children, frail elders and adults with disabilities – all of whom are able to interact through storytelling, music and games. The interactions are symbiotic: Adults find purpose through mentoring youth, while children benefit from the elders’ attention and learn to respect people who are different from them. St. Ann operates two locations: its original Stein campus on Milwaukee’s south side and its Bucyrus campus, a $25 million center that opened in 2015 on the city’s north side. In addition to providing day care, the Bucyrus campus includes a 250-person capacity bandshell, which features family-friendly entertainment for the community. It also launched a business development program, offering trainings that aim to leverage entrepreneurship as a vehicle out of poverty. It partners with Milwaukee entrepreneurship organization BizStarts, which recently opened an office at the Bucyrus campus with the goal of
Sister Edna Lonergan visits St. Ann Center’s infant classroom. tailoring its services for underrepresented entrepreneurs. St. Ann Center opened an intergenerational play garden this summer that is accessible to people of all ages and abilities and is installing 27 raised garden beds in a neighborhood long known as a food desert. Lonergan said upwards of 90% of its staff are from the surrounding neighborhood. Before opening the Bucyrus campus, the center surveyed residents to ask them what services they would like to see provided. “They said, ‘People start business, they come into our neighborhood, and they promise to hire us and they never do,’” Lonergan said. “And I said, ‘I’ll make a promise. We will hire you from within, when and where possible.’ … And we continue to keep that promise.” n
ulations! t a r g TO ALL HONOREES Con IN THE
LIVABILITY CATEGORY
Dillett Mechanical Service Inc. Tom Dillett | (262) 650-0770 dillettmechanical.com
Congratulations to St. Ann's Center for Intergenerational Care!! Your mission is amazing.
Catalyst Construction (414) 727-6840 catalystbuilds.com
Congrats St. Ann’s! We’re proud of the value and intergenerational care you provide.
biztimes.com / 33
LIVABILITY
FINALISTS DOHMEN COMPANY FOUNDATION Milwaukee Industry: Philanthropic enterprise Dohmen Co. has operated in the Milwaukee area more than 160 years, but within the past few years the business has reinvented itself to become part of the solution to the country’s chronic health issues. In 2019, Dohmen converted its ownership structure, becoming the first in the country to switch from a family-owned S corporation to a benefit corporation owned by a private nonprofit foundation, The Dohmen Company Foundation. Today, its endeavors include providing nutritious and convenient fresh food delivered to consumers and businesses, supplying software solutions that improve the accuracy and efficiency of health labs, and creating employer benefits that target root causes of lifestyle-related health issues. The profits of its social businesses fund foundation grants, which are awarded to organizations that improve the health of people and communities. Dohmen also has a charitable program of its own, Food For Health, which provides healthy meals, nutritional coaching and biometric screening to Milwaukee-area residents. A partnership with Common Ground Healthcare Cooperative, the Food For Health program delivers 14 medically tailored meals per week to co-op members.
MILWAUKEE CONTINUUM OF CARE Milwaukee Industry: Nonprofit
Over the past decade, Milwaukee Continuum of Care and its partners have made significant headway toward the goal of ending homelessness in Milwaukee County. Using a “housing first” approach, the Milwaukee CoC works with local shelters, nonprofit organizations and other government entities to connect people experiencing homelessness with affordable housing and community-based support. The organization was founded in 1998 as the entity responsible for coordinating the city of Milwaukee’s annual Supportive Housing Program application to the U.S. Department of Housing and Urban Development. Today, it is the central organization overseeing and connecting partner agencies to grant funding, local and national resources, and programming that serves individuals experiencing homelessness. Over the past decade, the count of individuals experiencing homelessness in Milwaukee County has dropped by 42%. Between 2020 and 2021, Milwaukee CoC’s biannual census saw the sharpest decrease to date of individuals staying in unsheltered settings. This year, the count found only 17 individuals experiencing unsheltered homelessness, a historically low number. Milwaukee CoC attributes the decrease to expanded street outreach coverage, utilizing CARES Act funding for additional permanent housing, an increase in homeless prevention efforts to reduce evictions and emergency hotel placements.
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ulations! t a r g TO ALL HONOREES Con
DOHMEN + MKE HEALTHY PEOPLE POWERING HEALTHY COMMUNITIES
IN THE
LIVABILITY CATEGORY
CONGRATULATIONS to The Dohmen Company Foundation on their well-deserved nomination! Marsh McLennan Agency
Bob Kotecki (262) 439-2175 | MarshMMA.com
34 / BizTimes Milwaukee SEPTEMBER 27, 2021
EQUITY
GOOD KARMA BRANDS / 101.7 THE TRUTH Milwaukee Industry: Media Days after the murder of George Floyd last year, Good Karma Brands founder and chief executive officer Craig Karmazin and vice president and market manager Steve Wexler were volunteering at a first responders’ event and got to talking about Black representation in local media. They saw a need for a radio station that “super-serves” Milwaukee’s African American community and decided that GKB, as a locally owned media company, should take the lead. That initial conversation snowballed into what’s now known as 101.7 The Truth, which markets itself as “an audio platform that embraces Milwaukee’s Black community.” The FM station launched Jan. 4, 2021, airing live talk radio weekdays from 7 a.m. to 6 p.m. Its goal is to provide a space where on-air hosts and listeners alike can “speak their truth – unvarnished, authentic, sincere,” said Wexler.
WINNER “It’s very important to us that the radio station be seen as a place where the full experience of the community has a place,” he said. Building a radio platform from the ground up is no small task, especially during a global pandemic. The first step was hiring a team of local staff, including general manager Cherie Harris, program director Kyle Wallace, and prominent on-air personalities such as activist Tory Lowe, Milwaukee Bucks in-game host Melanie Ricks, and retired Milwaukee Police Lieutenant Dr. Ken Harris. In its first year, The Truth has found itself in the center of conversations surrounding important issues ranging from police brutality to COVID-19 vaccinations. As a result, the station has become a source for the local news media looking to gauge sentiments and reactions of the Black community on relevant topics. “It gives us an opportunity to talk about civil unrest and equity and wealth,” said Harris. “We felt we need to talk about this, and we have to be unapologetic about it. Those conversations may be hard to listen to, but it’s going to educate us all and this is a safe space to have those conversations.”
Kyle Wallace, Cherie Harris, Gene Mueller, Steve Wexler and Craig Karmazin. The Truth’s content isn’t all hard-hitting news, though. Listeners tune in – and contribute to – conversations covering everything from pop culture to education to health, she said. While the station’s primary focus is the Black community here in Milwaukee, its reach is far broader. On-air personalities draw their own following to the brand, and thanks to digital streaming platforms and podcasting, The Truth can be heard anywhere. “We have people calling from all over – not just here in Wisconsin, but Nebraska, Las Vegas, even Africa. So, I say we’re worldwide, too,” said Harris. n
Thursday, November 18, 2021 7:00AM Registration & Networking 7:30-9:45AM Breakfast & Program Italian Community Center
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The commercial real estate industry continues to adapt We’ve moved past lockdowns that devastated the economy, but as many office staff continue to work from home, the future of the office market remains murky. Join us at the 2021 BizTimes Commercial Real Estate and Development Conference as we take a look at What’s Next for the industry with a pair of panels, one focused on the severely stressed office market, while the other covers industry trends and examines the next development hot spots in southeastern Wisconsin.
Panelists: • Jenna McGuire, Office Property Specialist, Founders 3 (1) • Mark Irgens, CEO, Irgens (2) • Mike Wanezek, Partner, Colliers (3) • Josh Krsnak, President & CEO, Hempel Companies (4) • Josh Jeffers, President & CEO, J. Jeffers & Co. (5) Moderator: • Andy Hunt, Director, Marquette University Center for Real Estate (6)
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EQUITY
FINALISTS ALVERNO COLLEGE
PODCAST TOWN
Milwaukee Industry: Higher education
Wauwatosa Industry: Media
Last September, Alverno College launched the Thea Bowman Institute for Excellence and Leadership, a scholarship program geared toward Black undergraduate students. The full-tuition program was born out of 2020’s racial reckoning that followed the murder of George Floyd. Answering the nation’s collective call to action, Alverno College president Andrea Lee envisioned a program that would provide access to higher education, experiential leadership and mentoring opportunities for Black women who would go on to be leaders in their career fields and communities, according to a news release. In early May, the inaugural class of seven Bowman Scholars completed its first academic year. The second cohort of eight women began in August, having been selected from dozens of applicants across the Milwaukee area and Illinois. The program provides students with a dedicated advisor, an alumna mentor, exclusive networking opportunities and guaranteed internship opportunities. The institute is aptly named, honoring the late Thea Bowman, FSPA, Ph.D., a Black Franciscan nun from Mississippi who was educated in Wisconsin. She gained national and international recognition for her passionate advocacy for racial justice. “The time is now, and the place is Alverno, for this institute to flourish and attract committed Black women seeking to experience the power of an Alverno education,” said Ronett Jacobs, the institute’s director and an Alverno alumna, at the time of its launch. “Thea Bowman Scholars are women who know, ‘I was sent here to do something great, and I’m determined to do that.’”
Podcast Town is a full-service podcast agency that helps companies, entrepreneurs and brands start and grow podcast shows and boost revenue through audio marketing. The company markets itself as “white glove,” meaning it works with clients through every step of the process, from launch to production to monetization. Its mission is to tell stories that “educate, motivate, inspire and transform.” The Wauwatosa-based company was founded by Elzie Flenard, now known as “the mayor” of Podcast Town. His founding vision was to help people “find their voice among the noise,” according to the company’s website. Flenard has been podcasting since 2016. His business talk show, Enterprise NOW!, offers advice and motivation to business leaders and entrepreneurs on a range of topics. This summer, Podcast Town launched its “Reflections” program, which aims to expose young people to the podcast business among other professions. It also teaches them how to establish and build relationships.
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INNOVATION
CAPTIVATE EXHIBITS Brookfield Industry: Manufacturing Captivate Exhibits was on pace to achieve record sales numbers for its tradeshow business before the COVID-19 pandemic devastated both the industry and the Brookfield-based company. Formerly known as Exhibit Systems, Captivate Exhibits specializes in customized brand environments with a focus on tradeshow exhibits and corporate interior design. Design projects for corporate board rooms, company museums and history walls kept Captivate Exhibits afloat during the pandemic. However, with the uncertain return of tradeshows, the company knew it needed to transition its business model for long-term survival. Following a series of brainstorming sessions, the company identified an untapped market in luxury small outdoor living structures for residential backyards. The new business segment, called “Enclave Outdoor Structures,” offers customers high-end living structures made from prefabricated construction that take as little as two
WINNER days to assemble. These “enclaves” range in size from 8-by-12 to 10-by-12 rooms and can be designed for a variety of uses, including home offices, art studios, pool cabanas, exercise areas and more. The company offers six different models of these permanent enclaves, which cost up to $30,000, are fully customizable and can be outfitted with electrical, heating and air conditioning. The new business segment may appear to be a complete 180 from Captivate Exhibits’ current business model. However, with the company’s approach to design thinking, Outdoor Enclave Structures is not far off from its tradeshow exhibit operations, said Richard Magliocco, Captivate Exhibits president. “Everything in the enclave outdoor structure is basically components that we currently use in the (tradeshow) industry,” Magliocco said. “We’re just now using them in a different fashion.” This means Captivate Exhibit employees already know how to assemble the outdoor structures, while the company’s materials, which had sat idly during the pandemic, can be used to build enclaves, Magliocco added.
ulations! t a r g TO ALL HONOREES Con IN THE
INNOVATION CATEGORY
John Schlosser, Brian Magliocco, David Jentz, Richard Magliocco, Jim McCombe and Shandra Zastrow The concept of a more permanent, luxury outdoor structure originated from the West Coast and has been popular for decades, but the trend hadn’t arrived to the Midwest until now, Magliocco said. As the effects of the pandemic subside, he expects to attract additional interest from customers ready to make larger investments on their homes. “As we initially started going into it, we thought this would be a nice adjunct just to keep ourselves busy,” Magliocco said. “We now see what the potential is out there and we’re trying to reposition ourselves.” n
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INNOVATION
FINALISTS ARCH ELECTRIC INC.
NOVIR
Milwaukee Industry: Biotechnology
Plymouth Industry: Solar energy equipment supplier Arch Electric has provided solar and energy storage solutions to businesses, homes and utilities across 24 counties in central and southeastern Wisconsin for nearly 20 years. The electrical contractor specializes in solar and related fields, including electric vehicle charging, utility solar, residential and commercial/industrial solar and storage, along with operations and maintenance services. Arch Electric pioneered a fix tilt racking system for commercial projects that maximizes solar output by using new bifacial solar panels that can adjust for the angle of the sun. The company also provides custom solar panel designs installed on detached garages for residential projects. Arch Electric has installed several solar projects in cities across Wisconsin, including Fitchburg, Sheboygan and Whitefish Bay. Earlier this year, Arch Electric installed solar panels on top of Wauwatosa’s city hall, civic center and public library. The new solar system, composed of 1,036 375-watt solar panels, is estimated to reduce the city’s energy costs by $40,000 annually. The system will reduce greenhouse gas emissions by 383 tons, which is the equivalent of 39,074 miles of gas being consumed, and will generate enough electricity to power 63 homes for one year, according to the company.
Demand for COVID-19 tests surged during the pandemic and as companies looked for a means of reopening and keeping staff safe, Milwaukee-based Novir responded with a tech-enabled solution. The diagnostic biotechnology company, formed during the pandemic, emerged with new accessible and inexpensive antigen and antibody tests for COVID-19. Novir now delivers thousands of tests each week to organizations and companies across the country. Novir developed a full-service testing program with integrated software solutions that allow companies and organizations to screen employees, students and others for COVID-19. The program generates results stored on the cloud in just 15 minutes, according to the company. Novir also offers self-service testing, which provides companies with a roadmap on how to hold testing events efficiently. The company sends testing kits to customers, helps the customer set up the testing event, and provides instructions on how to administer tests safely. The company’s self-service testing program is integrated with Novir’s TRACK software, giving customers a way to digitize the testing process and generate reports should they need to provide results to insurance providers or health officials. Novir’s platform can also digitize test scheduling, location information and more. Novir also became an approved COVID-19 vaccinator in Wisconsin, delivering thousands of shots in the state via its on-site clinics.
HONORABLE MENTION: • Caravela • Like|Minded • WorkShift, Inc
ARTISTS WORKING IN EDUCATION INC TALENT
WINNER like Harley-Davidments to major brands son and Briggs & Stratton. requires a Serving those customers quality business. Kerfocus on running a uses the phrase “no lin said Beyond Vision margin, no mission.” about helping the The mission is all
BEYOND VISION Milwaukee Industry: Manufacturing
careers. impaired grow in their Jim Ker- visually that Beyond ViPride. Those are words “We use the analogy , Hope. Independence. said. “It’s a place Beyond Vision, a Milwaukee-based is a runway,” Kerlin lin uses to describe employment sion to grow.” enterprise that provides to land or it’s a place Vision employees. self-funded social of the company’s A group of Beyond blind and visually impaired. Kerlin, Take the example said opportunities for the who started comunderstand blindness,” accessibility coordinator a point of paying market “Most people don’t doing light Beyond Vision. Beyond Vision makes significantly executive officer of assembly and packaging into machining and then employees and invested president and chief they can do in later moved petitive wages to all make it acthey’re not dumb … manufacturing. He employee landplanning system to “They’re visually impaired, they have the right tools.” trying out sales, the in its enterprise resource can do if up more opportunities the call center. After anything you and I who are visually to all employees, opening those of role. 70% is current ed in his everywhere cessible department. Kerlin said the reality Kerlin said. “He goes employees in every employwork. “He’s like a rockstar,” status quo for blind the company culture, impaired can’t find through the on overcoming the trainAsked to describe is when they walk company and works focused on teaching, with vision,’ we don’t “The unspoken truth the cane in the person sees a by in the done somebody ees described a business as soon as ‘this can only be with everyone pulling door on an interview, and it’s just of hiring and promoting excuses start to happen accept that.” after losing ing, or the guide dog, person doesn’t came to the company said. same direction. fears. The average Another employee as blind,” one employee he could tell she at her, met based on unfounded looked not Kerlin time “I am non-sightKerlin said. her vision. The first loss, but she has between sighted and understand blindness,” her recent vision “There is no difference workforce,” he added. was insecure about and is now a call “It’s a greatly overlooked ed people.” n customer care, machining, continued to grow with the company Beyond Vision provides testing for and website accessibility govern- center supervisor. assembly, packaging federal from the state and a range of customers,
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Strategies CULTURE
Managing culture through merger Strategies for successfully leading organizational change ORGANIZATIONAL CHANGE is about people and their roles in the achievement of the agency’s mission. It’s hard to steady the helm while navigating the seas of change, but that is what Mike Gifford, the CEO of Vivent Health, has done the past few years. Since Gifford joined Vivent Health’s predecessor, the AIDS Resource Center of Wisconsin, in 1993 and he was promoted to CEO a decade ago, not only has the mission of the agency changed, but so has the population they serve. In 1999, the best minds fighting AIDS in Wisconsin said, “Don’t provide health care.” Today Vivent is the largest provider of HIV health care in the state with the best clinical outcomes. This once Milwaukee-focused AIDS Service Organization has gone from local to statewide to multi-state during Gifford’s tenure, rapidly increasing the population they serve while experiencing major organizational change. These proven services are now being delivered in four other major cities in America. For years, the organization’s HIV Medical Home model has been the gold standard for others throughout the country. Now that model is being introduced in Austin, Denver, St. Louis and Kansas City as part of a merger of AIDS Resource Center of Wisconsin, Rocky Mountain CARES, St. Lou-
is Effort for AIDS and AIDS Services of Austin, a combination that created Vivent Health. As a result, the organization has experienced a number of challenges along the way. Some organizations preferred their existing model and resisted buying in to Vivent Health’s model, while others have welcomed Vivent with open arms, resulting in an ability to better serve their organization’s population. Merging the culture of one organization with another is just as much a challenge as a change in leadership style. The ultimate goal is to better serve their patient base, and those who accepted and adopted Vivent’s model realized their patients would be better served in the long run. Where resistance was met, it was about control – local versus national. In some cases, a loss of identity was an issue. These organizations lost sight of the “superordinate goal”: to better serve their patients, not protect their brand or leadership. It was critical that the core values regarding patient focus matched up and were clearly defined and supported by the agency’s leadership. How did Gifford and his board successfully navigate the turbulent waters while maintaining their high levels of service? Here are some of the strategies they used in approaching each target agency: 1. They set guiding principles that are focused on the needs of patients to direct merger discussions and decisions. 2. They created a shared understanding of what is important. At Vivent their market culture is: “We are passionate champions providing unfettered access to care, in pursuit of the finest quality outcomes known to humankind and assuring financial strength to be here until the final day of AIDS.” 3. They built the relationships based on trust. They stressed that they were not here to take over another organization; rather they were entering into the partnership to ensure both organizations continue to thrive. For example, they built plans together for expanded care with the Austin leadership team by identifying their needs prior to the
formal merger. 4. Vivent invested time and resources bringing the diverse cultures of the organizations together by focusing on the needs of the patients. 5. All discussions were entered into with a sense of curiosity and equality. The success in developing new services in Denver and St. Louis made the conversations with the leadership at the Austin agency easier. The history of Vivent sticking to their commitments built trust between the parties and facilitated easier conversations. 6. A mainstay of Vivent’s strategy is to guarantee governance roles for board members of the organization joining Vivent Health. This includes serving on the national board of directors, board committees or a local advisory board. This direct involvement in decision making ensures that local needs are always prioritized and balances local and national viewpoints. Vivent invested the time and energy needed prior to the merger to ensure that the two agencies’ goals, objectives and delivery systems were aligned. This increases the potential for a smooth transition and success of the merger. n
CARY SILVERSTEIN Cary Silverstein, MBA, is a speaker, author and consultant, a former executive for Gimbel’s Midwest and JH Collectibles, and a former professor for DeVry University’s Keller Graduate School. He can be reached at csilve1013@aol.com. biztimes.com / 39
Strategies LEADERSHIP
The conscience of your company How to assemble a highperforming board INDEPENDENT BOARD MEMBERS are one of the most valuable resources for a private company. They are its conscience. An organization that views its board as an instrument of accountability, growth and strategy realizes the value. Independent board members’ wealth of knowledge and experiences enhance a company’s capabilities and bring a range of new ideas to strengthen or transform the business while minimizing risk. What qualifications, experiences and expectations should be considered when selecting an independent board of directors? A checklist for the best candidates • Independence and diversity of thought are critical — someone with no past or current relationship to the business, senior leadership or ownership. • Superior candidates must be willing to professionally share contrasting business outlooks in a non-confrontational and respectful manner. • Collegiality, character and a complementary fit to incumbent members are important. • Integrity and the ability to earn trust and respect are critical. Go deep and broad to validate character and credentials. • They must exhibit a direct, professional, concise and focused communication style. Demonstrated high emotional intelligence (EQ), knowing when to get involved, chal40 / BizTimes Milwaukee SEPTEMBER 27, 2021
lenge or influence. • A n ability to correctly assess C-suite talent with limited interaction. • In-depth leadership experience in two of four functional areas: 1. Sales and marketing, including the state of evolving digital tools. 2. Operations – experience in modern manufacturing and management tools, lean, Six Sigma and artificial intelligence and robotics. 3. Technology and analytics – data-driven and innovation excellence. 4. Financial – the ability to quickly digest and understand financial statements. • Ten or more years of Profit & Loss accountability with an understanding of the relationships between the balance sheet and income statement. • Curiosity, passion to serve and ability to learn quickly are critical. • Proven conflict resolution, crisis management and ethical judgement skills. 9 things to offer prospective candidates What information and expectations should you provide during the selection process? 1. Annual time commitments can range from 50 to 100 hours, depending on travel, meetings and committee work along with strategic and competition reviews. Many businesses now restrict their C-suite executives to one external board position. Retired senior leaders are tending to limit service to two boards. 2. It takes six to 12 months to educate a new director with a comprehensive onboarding process. 3. The duration of service on the board is up to five years, and it can be renewed if the owner wishes. Either party can terminate service at any time. Mandatory retirement age is increasing. 4. Directors are expected to serve on board committees and, if inexperienced, the committee chair will provide appropriate mentorship.
5. C onfidentiality is important, but independent directors have the responsibility and authority to investigate concerns of potential inappropriate behavior, the accuracy of information and any unusual business activities. 6. Candidates cannot be bound by any past restrictive covenants. New directors must execute confidentiality and nondisclosure agreements. 7. New directors will expect appropriate liability indemnification. 8. New directors will declare that they have neither observed nor experienced any conflicts of interest. 9. The best independent advice and counsel is not free. Compensation has been growing at 15% annually for the past five years. The best independent directors can be a significant asset and offer value through their skills, expertise, network and mitigation of risk. They will also ensure superior success and lend credibility to a company. What or who is the conscience of your company? n
RAND M c NALLY Rand McNally is a Vistage chair, retired CEO, consultant to private companies and principal of Wauwatosa-based HurdMcNally, a board of directors search firm for privately owned companies in the Upper Midwest. He can be reached at Rand.McNally@ HurdMcNally.com.
A BRIEF CASE
What factors did you consider in creating your employee COVID-19 vaccination policy? Kari Atkinson Vice president of employee rewards and experience ManpowerGroup “In early August, ManpowerGroup announced that as of Oct. 4, to coincide with the official re-opening of our headquarters, all HQbased employees will be required to be fully vaccinated. This was not a decision we took lightly – taking time to understand what employees needed to feel safe and address any concerns people had. Conversations about safely returning to work have been ongoing since the onset of the pandemic. When ManpowerGroup quickly pivoted to remote work, we built a workplace ready for our employees to return safely. Those conversations happened amongst our leadership team and response team as well as with our employees. We valued and needed their input on how to proceed. “We made the decision to require vaccinations for several reasons. First, we listened to our people. Gathering feedback and listening to concerns proved invaluable in creating a return plan that would allow us to collaborate effectively, but also safely. The health, safety and well-being of our people has been, and always will be, our top priority. “Second, we believe vaccines are the best tool to fight the spread of COVID-19, stay healthy and ensure we help keep our employees, their families, and the community, especially those who are most vulnerable, safe. That sentiment was echoed by the vast majority of our employees.”
Keith Coursin
Andrew Grossman
President Desert Aire
Owner The Brass Tap, Greenfield
“Last spring, when vaccinations were being made available to the general public, Desert Aire announced that any employee who completed the COVID vaccination process would receive a $100 bonus. This is the same bonus we pay our employees to receive an annual physical exam, as both actions will in the long-term help reduce our medical insurance costs. “In addition to the bonus, we emailed our employees with information from respected sources, such as the Medical College of Wisconsin, so they could make their own personal decision to move forward with a vaccine. We have encouraged employees to move forward with a shot as this is the only way to ensure the company has employees available to produce our products. So far, we have had only a maximum of three employees out at any one time due to COVID. “Desert Aire was considered an essential business, with our manufacturing area never shutting down during the pandemic. Within two months of the lockdown, all office employees were back in the office. We encourage mask wearing and social distancing for the non-vaccinated but have never mandated that an employee must get one. We are monitoring the outcome of the recent mandate announcement (from President Biden), as Desert Aire would be required to meet the federal requirement due to our employee count.”
“Our vaccine incentive program offers our employees $200 if they choose to get vaccinated against COVID-19. There is absolutely no penalty for not being vaccinated. The program was created to give both our staff and our customers some peace of mind in uncertain times. We want both our staff and the guests that enter our building to feel safe and welcome within the walls of our establishment. “The idea came from our corporate office, FSC Franchising Co., (which) encouraged us owners to start implementing the policy in our own stores. I have to give them credit for seeing this as an important issue. My wife, Kat, who runs the business with me, and I jumped at the idea of the program and wanted to show our staff that their health is important to us. “The past year and a half has obviously been difficult, especially for those in the service industry. Essential workers have been spending the incentive money on necessities and other bills, like student loans. We don't believe in dictating what our employees do with their bodies; it's everyone's choice, but if this incentive program was the nudge they needed to feel comfortable taking off of work to get vaccinated, then we want to encourage that. So far, more than 90% of our staff have been vaccinated.” n
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BIZ PEOPLE
Advertising Section: New Hires, Promotions, Accolades and Board Appointments
BANKING
MEDIA & MARKETING Audrey Sellers named VP, Commercial Banking for North Shore Bank
North Shore Bank today announced Audrey Sellers as vice president, commercial banking. With more than 20 years in the industry, Sellers will be responsible for servicing business customers in their financial needs. She is an active community member.
BANKING
88Nine Radio Milwaukee (WYMSFM 88.9) Names Cheryl Bennett as General Manager
LOGISTICS & TRANSPORTATION
Waukesha State Bank Hires John Schmitz
Waukesha State Bank has hired John Schmitz as vice president commercial banking officer. John has over 30 years of financial experience. In his new role, he will be responsible for prospecting, developing and managing commercial loan portfolios.
Radio Milwaukee has promoted Cheryl Bennett to station general manager. Bennett will be responsible for all human resource matters and managing operations of the station’s facility. She previously served as accounting and human resource manager.
New Hire?
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Schroeder Solutions Promotes Tyler Smith to Executive Vice President
Schroeder Solutions is pleased to announce the promotion of Tyler Smith to Executive Vice President. In this role, he takes a significant step with the company and will continue to drive strategic initiatives, operational excellence and superior customer satisfaction. Smith has been an integral part of the company since joining the organization in 2014. He is a dedicated leader who has helped the organization streamline its processes and increase revenue. In addition to the countless ways he has supported the company’s success, he always helps when asked, is humble and a go-to person for the team.
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GLANCE AT YESTERYEAR
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Lake Crest Apartments emerging near Lake Michigan This Sept. 29, 1950 Brown & Rehbaum photo shows crews working on the steel-reinforced foundation of the Lake Crest Apartments at what is now 1732 N. Prospect Ave. The Edgewater apartments are located in the middle ground, and Lake Michigan is in the background. The building’s one-room floor plans are 548 to 576 square feet with rents between $765 and $870 for units available as of mid-September. — Photo courtesy of Milwaukee Public Library/Historic Photo Collection
COMMENTARY
We need more people WISCONSIN CONTINUES to face a workforce shortage that’s making it difficult for many businesses to fill open positions. Some have blamed enhanced unemployment benefits enacted due to the COVID-19 pandemic. The additional $300 weekly federal unemployment benefit ended in Wisconsin earlier this month. That should help bring more people off the sideline and into the labor market. With Wisconsin’s unemployment rate at 3.9%, the enhanced unemployment benefits are no longer needed. However, there’s a bigger problem. Wisconsin’s population growth is weak, which leads directly to a lack of economic growth because we need people to start businesses, work for companies, and be consumers. The 2020 census shows Wisconsin’s population grew only 3.6% the past decade, the slowest decade for population growth in the state’s history. The U.S. population grew 7.4% from 201044 / BizTimes Milwaukee SEPTEMBER 27, 2021
‘20, so Wisconsin is lagging well behind the rest of the nation. In the Midwest, Minnesota (7.4%), Iowa (4.7%) and Indiana (4.7%) all had faster population growth than Wisconsin, which did better than Illinois (where population decreased 0.1%), Michigan (2.0% growth) and Ohio (2.3% growth). The lack of population growth is a huge problem for Wisconsin. Fixing it should be a major priority for state policymakers. Some of the most common reasons given for our lack of population growth include the weather (which we can’t do anything about) and Wisconsin’s notoriously high taxes. During Scott Walker’s time as governor (2011-‘19) he and the Republican Legislature worked to lower taxes and improve the state’s business climate. Lower taxes will help attract more residents to the state, but it’s obviously not enough, otherwise Wisconsin’s population growth would be better. According to WalletHub, Wisconsin has the 17th highest tax burden in the U.S., which is better than Minnesota (6th highest) and Iowa (13th highest), but those states had higher population growth rates. Lower taxes and a business-friendly environment are only part of a comprehensive growth strategy that Wisconsin needs. The
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state needs to invest in the UW System as it attracts and develops talent to fill the workforce pipeline, it needs to invest in quality-of-life amenities that make this a great place to live, and it needs to be welcoming to all types of people, including immigrants. The state’s economic strategy has largely focused on the manufacturing and agricultural sectors, which produce export products that bring money into the state’s economy. But it needs to do much better fostering startups and high-tech companies. Finally, the best opportunities for growth are in the state’s largest cities. The Madison metro area grew a healthy 12.5% from 2010‘20, but the Milwaukee area’s growth was a pitiful 1.2%. State government needs to work better with its two largest cities and restore local control so these communities can find appropriate solutions to their unique problems. n
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NONPROFIT BUCYRUS FOUNDATION COMMITS $10 MILLION TO SOUTH MILWAUKEE INITIATIVES The Bucyrus Foundation will distribute $10 million over the next decade to support economic development, schools, nonprofits and revitalization efforts in South Milwaukee. The gift will be dealt out as a series of annual $1 million donations for the next 10 years and will be administered through the City of South Milwaukee and South Milwaukee School District, the foundation recently announced. The donations will fund an array of initiatives, including the redevelopment of downtown South Milwaukee, “potentially laying a foundation for the creation of an entity focused on investments in property acquisition and rehabilitation, business attraction and retention, public improvements,
marketing, events and other initiatives aimed at revitalizing South Milwaukee’s city center,” the foundation said. The foundation will also direct $2 million of its gift to the South Milwaukee School District to fund investments in athletics and STEM and manufacturing career education. The gift will also support improvements to public spaces and greenspaces, including initiatives to help fund cityand county-owned parks and other natural areas like Bucyrus Commons, the South Milwaukee War Memorial, Grant Park and the Oak Creek Watershed. The gift will also support a grant program for South Milwaukee nonprofit organizations. — Lauren Anderson, staff writer
c alendar WRTP | BIG STEP will host its first Cheers to Careers celebrity mixology fundraiser on Thursday, Sept. 30 at Bottle House 42, 1130 N. 9th St. in Milwaukee. More information is available at wrtp.org. Safe & Sound will host its “A Night to Unite” gala on Friday, Oct. 8 at No Studios, 1037 W. McKinley Ave. in Milwaukee, along with a virtual option. Cocktails and appetizers will be served at 5:30 p.m., followed by a champagne toast and program beginning at 6:30 p.m. More information is available at safeandsound.org. The American Cancer Society will host its Making Strides Against Breast Cancer Milwaukee walk on Saturday, Oct. 9 at Henry Maier Festival Park, 200 N. Harbor Drive. Registration begins at 8 a.m. and the walk starts at 10 a.m. More information is available at makingstrideswalk.org/milwaukeewi.
D O N AT I O N R O U N D U P The West Bend Mutual Insurance Charitable Trust awarded $501,500 in grants to 24 nonprofit organizations in West Bend and the surrounding area in support of new programs, capital projects and operating support. | Spectrum donated $10,000 to Benedict Center in Milwaukee as part of the company’s national community philanthropic program, Spectrum Employee Community Grants. | Riverside University High School and Milwaukee Marshall High School received a donation of high-quality helmets, valued at a total of $20,000, from the Green Bay Packers Xenith Helmet Give Back program. | Cousins Subs and the Milwaukee Bucks raised $16,700 through their Block Out Hunger campaign during the 2020-‘21 season. | Sargento Foods made a $44,000 donation to Milwaukee Habit for Humanity through the Tipoff for Homes initiative.
nonprofit
SPOTLIGHT
A L Z H E I M E R ’ S A S S O C I AT I O N WISCONSIN CHAP TER 620 S. 76th St., Ste. 160, Milwaukee (414) 479-8800 | alz.org/wi Facebook: facebook.com/alzwisconsin Instagram: @AlzWisconsin | Twitter: @AlzWisconsin
Year founded: 1983 Mission statement: The Alzheimer’s Association leads the way to end Alzheimer’s and all other dementia – by accelerating global research, driving risk reduction and early detection, and maximizing quality care and support. Primary focus of your nonprofit organization: Education, information, and care and support services. Other focuses of your nonprofit organization: Advocacy, support groups, information and referral services, 24/7 Helpline (800-2723900). Number of employees at this location: 34 Executive leadership: Dave Grams, executive director; Wendy Betley, senior program director; Linda Braun, senior development director; Michael Bruhn, senior director of public policy; and Robyn McGill, marketing & communications director. Board of directors: Rebecca Emmons (chair), Terese Capizzi (vice chair), David B. Schulz (secretary), Sue Colegrove (immediate past
board chair), Piero Antuono, Fatou Ceesay, Nathaniel Chin, David Crass, Terry Erickson, Amy Fouts, Dean Gille, Gina Green-Harris, Kristen Kochan, Suzanne Koss, James Madlom, Tom Naleid, Becky Reichelt, Patrick Rhode, Mike Schlossmann, Craig Simpkins, Martha Sullivan, Carol Wessels, Mike Malone, Gaurie Rodman and Chad Tessmer. Is your organization actively seeking board members for the upcoming term? Yes. Ways the business community can help your nonprofit: The Alzheimer’s Association seeks partners in the business community to: • Create awareness for Alzheimer’s Association education and resources to their employees who may be dealing with dementia within their family. • Engage employees in companywide team fundraising initiatives to benefit local Alzheimer’s Association programs. • Sponsor key fundraising events throughout the year. Key fundraising events: Walk to End Alzheimer’s, The Longest Day (June 21 2022), Alzheimer’s Gala.
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BizConnections
ANDREW FELLER PHOTOGRAPHY
5 MINUTES WITH…
5 MINUTES WITH…
DOMINIC ORTIZ Chief executive officer and general manager, Potawatomi Hotel & Casino
POTAWATOMI HOTEL & CASINO continues to work toward its recovery from the COVID-19 pandemic that initially shut down, and has since limited, its operations over the past 18 months. The gaming and hospitality business has made a major push to hire hundreds of workers in recent months to return to full capacity. Dominic Ortiz took the helm of Potawatomi in July after nearly five years as chief financial officer of Soaring Eagle Gaming Properties and Corporate Services in Mount Pleasant, Michigan. BizTimes associate editor Lauren Anderson recently caught up with Ortiz on his plans in his new role. HOW’S THE COVID REBOUND GOING? “Potawatomi is in transition. We’re struggling to attract the labor market as you see with most businesses in the city. We pushed out vaccination bonuses, we pushed out hiring bonuses. … We want to continue to move forward and reopen, put these jobs back in the city for our catering, our gaming facilities and our restaurants and our entertainment. That’s our current transition, it’s really trying to build up the employees that we need to continue that path to safely get back to fully 46 / BizTimes Milwaukee SEPTEMBER 27, 2021
reopened. … That’s really our key focus as we come into this fall. It may be September, but we’re already planning for MKE New Year’s Eve here at Potawatomi.” IMPACT OF ONLINE GAMING ON BUSINESS “We’re going to prepare the organization to be ready for anything that comes on our doorstep related to gaming – no matter what that might be, from a sports betting or iGaming (standpoint). I can speak from being in Michigan and working for the Saginaw Chippewa Indian Tribe that we were certainly heavily involved in iGaming and sports betting, and you’ve seen the proliferation across the United States as that begins to open up. So, what our current position is: Potawatomi will be ready for action no matter how that rolls out. Certainly, in COVID times, being able to place a bet from your home for some individuals is where they want to be, but we’re still seeing good demand for in-person entertainment and gaming.” ANY PLANS FOR THE VACANT LAND AROUND THE PROPERTY? “We don’t want to see that sitting as a parking lot forever. … I would say that I’m definitely progressive about experiential-type of entertainment and that zone is open for full discussion. “I’m very excited with what we can build from the Potawatomi brand. My background leads to really building upon this premier destination resort. You’re going to see some exciting developments at the property here that are going to lift some eyebrows and draw the right kind of attention that we need to really show this championship town that we’re first class and we intend to do that and invest capital in this community and create jobs and build something that this city is really proud of.” n
NOMINATIONS NOW OPEN! NOTABLE
COMMERCIAL REAL ESTATE LEADERS BizTimes Media’s Notable Commercial Real Estate Leaders will recognize brokers, directors, investors, developers, and finance professionals shaping high-profile commercial real estate in southeastern Wisconsin. Many have brokered deals for and developed the region’s most recognizable properties. Others are helping to steer industry groups that are fostering the next generation of leadership in commercial real estate and development. Nomination Deadline: October 1, 2021 Issue date: November 8, 2021
NOTABLE
FOOD & BEVERAGE EXECUTIVES BizTimes Media’s inaugural list of Notable Food and Beverage Executives will recognize leaders in the increasingly important food and beverage industry in southeastern Wisconsin. These executives are accomplished professionals who are feeding Wisconsin and the world. Some hold senior positions at large, publicly traded companies, others are running small cheese, pizza, bakery, or beverage manufacturing facilities and modernizing enterprises started by their parents or grandparents. They represent expertise in engineering and manufacturing processes as well as in logistics and global transportation, data and technology, packaging, and trade. Nomination Deadline: Friday, October 29, 2021 Issue Date: December 13, 2021
As the pandemic drags on, there are doctors, nurses, EMTs, home health care providers, patient advocates and janitors who are still working long hours and putting their own health on the line to help others. Health care workers are still dealing with Covid-19, while also providing emergency room care, cancer treatments, routine surgeries, obstetrics, and more. Notable Heroes in Health Care salutes the accomplishments of people and organizations making a positive difference on the front lines of health care. Nomination Deadline: Friday, October 29, 2021 Issue Date: December 13, 2021
To view this year’s winners and nominate, visit biztimes.com/notable
Hand in Hand with Students & Educators for 25 Years November 15 • 5-8 pm • The Pfister Hotel
You’re Invited! Celebrate with SHARP Literacy as we mark 25 years of innovative SHARP programming and 20 years of A Novel Event. We appreciate your continued support of our mission partnering with educators to foster a love of learning and brighten children’s futures through innovative STEAM based experience programs. A Novel Event is an evening of celebrating students, educators and community and features an uplifting speech from Packers great, Jordy Nelson. In addition to sharing memories from his outstanding career as a receiver, Jordy will highlight the importance of education, teamwork and humility in his success. Cap off the night with a voice auction, featuring experiences like a visit to Jordy’s farm in Kansas, chef’s table dining and trips.
Buy tickets now!
novel21.givesmart.com
Jordy Nelson
