A S UP PLE ME NT O F
of the
BORDER
southeastern wisconsin business relocation guide 2018
North of the Border - Southeastern Wisconsin Business Relocation Guide
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BORDER M O R E THAN B E E R AN D CH E E S E WISCONSIN IS SO MUCH MORE than beer and cheese. While it may have great iterations of each, the state has a lot to offer in other areas, as well. Businesses that are considering southeastern Wisconsin as a place to move or expand will be pleased to know there is lots of open land, organizations dedicated to helping and a ready workforce. We invite you to consider the assets and advantages Wisconsin offers and make the trip north of the border. In this Relocation Guide, we tell the stories of some businesses that have already made the move from Illinois to Wisconsin and share statistics and developments that demonstrate the region’s strength. Wisconsin has a favorable business environment and an outstanding quality of life. The commute times are short, the arts are affordable, the restaurants are award-winning, the schools are strong and health care is top-notch. In short, southeastern Wisconsin is the place to be. Read on to learn why. Dan Meyer, founder and publisher BizTimes Media
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n contents
of the
BORDER southeastern wisconsin business relocation guide 2018
NORTH OF THE BORDER SOUTHEASTERN WISCONSIN BUSINESS RELOCATION GUIDE 2018
PUBLISHER’S LETTER ........................................................................... 3 GET TO KNOW THE REGION
126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120 PHONE: 414-277-8181 FAX: 414-277-8191 WEBSITE: www.biztimes.com CIRCULATION E-MAIL: circulation@biztimes.com ADVERTISING E-MAIL: ads@biztimes.com EDITORIAL E-MAIL: andrew.weiland@biztimes.com REPRINTS: reprints@biztimes.com PUBLISHER / OWNER
Dan Meyer dan.meyer@biztimes.com DIRECTOR OF OPERATIONS
Mary Ernst mary.ernst@biztimes.com
EDITORIAL EDITOR
Andrew Weiland andrew.weiland@biztimes.com MANAGING EDITOR
Molly Dill molly.dill@biztimes.com REPORTER
Lauren Anderson lauren.anderson@biztimes.com REPORTER
Corrinne Hess corri.hess@biztimes.com REPORTER
Arthur Thomas arthur.thomas@biztimes.com REPORTER
Maredithe Meyer maredithe.meyer@biztimes.com
ADMINISTRATION ADMINISTRATIVE COORDINATOR
Sue Herzog sue.herzog@biztimes.com
Many businesses are heading north of the border............................................. 6 Mapping southeastern Wisconsin........................................................................ 7 Snapshots of Kenosha County.............................................................................. 8
p6
Fortune 1000 and Inc. 5000 firms...................................................................... 10
SALES & MARKETING
Snapshots of Racine County............................................................................... 11
DIRECTOR OF SALES
Linda Crawford linda.crawford@biztimes.com ACCOUNT EXECUTIVE
Molly Lawrence molly.lawrence@biztimes.com
BUSINESS ENVIRONMENT
p13
Wisconsin offers business-friendly climate....................................................... 12
ACCOUNT EXECUTIVE
David Pinkus david.pinkus@biztimes.com
Projects that received state support in 2017.................................................... 13
ACCOUNT EXECUTIVE
Relocation helpers............................................................................................... 14
Maggie Pinnt maggie.pinnt@biztimes.com
Top 5 projects transforming southeastern Wisconsin..................................... 15
ACCOUNT EXECUTIVE
Christie Ubl christie.ubl@biztimes.com
Companies that moved happy with decisions................................................. 18
SALES INTERN
Affordable sites are ready for development.....................................................20
Amanda Bruening amanda.bruening@biztimes.com
Transportation systems....................................................................................... 21
PRODUCTION & DESIGN
Major hotels and meeting facilities................................................................... 22
GRAPHIC DESIGNER
Alex Schneider alex.schneider@biztimes.com ART DIRECTOR
Shelly Tabor shelly.tabor@biztimes.com
Stats on the region................................................................................................. 9
Kenosha commuters a tappable workforce...................................................... 23
p21
FREELANCE ART DIRECTOR
Snapshot of Milwaukee County......................................................................... 25
LIVING HERE
Meredith Jensen meredith.m.jensen@gmail.com
p31
Home prices are where you really see the difference..................................... 26 Commute times.................................................................................................... 27 Living in southeastern Wisconsin....................................................................... 28
Independent & Locally Owned — Founded 1995 —
4 / BizTimes BUSINESS RELOCATION GUIDE · 2018
Higher education opportunities........................................................................ 31 Major health care facilities.................................................................................. 31
YOUR KENOSHA BANKING PARTNER Our experts devote more time, attention, resources, and connections to your business.
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n overview
MAN Y B U S I N E S S E S The Milwaukee River.
AR E H E AD I N G N O R TH O F TH E BORDER By Andrew Weiland, staff writer IT IS AN EXCITING TIME in southeastern Wisconsin. Downtown Milwaukee is experiencing a renaissance, with a new arena and a streetcar line under construction, plus numerous office towers, apartment buildings and hotels that have been built recently, are planned, or are under construction. But the hottest development area in the region is the I-94 corridor between Milwaukee and the Illinois state line. In that corridor, Amazon. com Inc. built massive fulfillment and distribution centers, Uline Inc. has doubled the size of its corporate headquarters, IKEA is building a new store and several companies from Illinois have relocated their operations in recent years. Kenosha County in particular has attracted several companies from Illinois, including Uline and Kenall Manufacturing Co. Last year, the Rosemont, Illinois-based subsidiary of German gummy bear maker Haribo announced plans to build a 500,000-square-foot facility in Pleasant Prairie that will bring up to 400 jobs. But the biggest project in the I-94 corridor between Milwaukee and Illinois is expected to begin soon. Taiwan-based Foxconn Technology Group plans to build a $10 billion, 22 million-square-foot liquid-crystal display panel manufacturing com-
6 / BizTimes BUSINESS RELOCATION GUIDE · 2018
plex in Mount Pleasant that could eventually employ 13,000. In addition, the Foxconn complex is expected to attract numerous companies in its supply chain, which will create even more jobs in the southeastern Wisconsin region. State and local government officials have been aggressive in recent years working to attract businesses to southeastern Wisconsin. Gov.
Southeastern Wisconsin offers the best of both worlds
Scott Walker and the Republican-controlled Legislature have pushed a pro-business agenda that included the passage of right-to-work legislation. The state’s public-private economic development agency, the Wisconsin Economic Development Corp., has provided numerous incentive packages to attract businesses. The state is providing $3 billion to Foxconn, by far the largest incentive package ever offered by the state. The WEDC provided another $114 million in incentives for 49 other business attraction, retention or expansion projects in 2017. Meanwhile, the State of Illinois is struggling to deal with a severe pension crisis. The state has increased income taxes as officials try to solve
the financial problems. Some business leaders in Illinois are choosing to move their companies or expand them into Wisconsin. Some have done so seeking a more favorable business environment. Some struggled to find available locations in the Chicago area to expand and found massive amounts of available real estate in Wisconsin. Real estate and other costs also tend to be lower in Wisconsin, providing another advantage north of the border. Companies that have moved to southeastern Wisconsin have noticed that the region has many key amenities, including numerous sports, arts and cultural attractions; General Mitchell International Airport in Milwaukee, serving 49 nonstop destinations; Port Milwaukee; improved freeways – with no tolls; a quality education system; well-regarded hospitals; and plenty of shopping, dining and entertainment options. At the same time, southeastern Wisconsin is just a short drive away from the Chicago area, so access to all of its amenities and resources is well within reach. Southeastern Wisconsin offers the best of both worlds. The purpose of this publication is to show why so many businesses have chosen to make the move to southeastern Wisconsin and to provide information to leaders that are thinking about moving their company north of the border. Wisconsin is much more than just a land of beer and cheese. Southeastern Wisconsin is a thriving region with a lot to offer you and your company. We hope you will take some time to read this special report and learn all about what’s going on north of the border. n
45
Green Bay
43
OZAUKEE COUNTY
MAP P I N G SO UTH E A STE R N
41
WI SCO N S I N
WASHINGTON COUNTY
WAUKESHA COUNTY Madison
Milwaukee
94 Waukesha
Miller Park
General Mitchell Int’l Airport
43
RACINE COUNTY
45
94
Racine
Foxconn Site
WALWORTH COUNTY Geneva Lake
12
Amazon
KENOSHA COUNTY
Kenosha
Uline HQ
ILLINOIS
biztimes.com/brg / 7
n business climate
K E N OS HA CO U NT Y KEY CITIES AND VILLAGES (POPULATION):
$ $ $
99,858
POPUL ATION: 168,437
KENOSHA
UNEMPLOYMENT RATE: 3.3%
PLEASANT PRAIRIE
L ABOR FORCE: 88,641
T WIN L AKES
BRISTOL
PER-CAPITA INCOME: $41,373
6,094
4,951
PADDOCK L AKE
MEDIAN HOUSEHOLD INCOME: $55,845 Source: M7
20,726
SILVER L AKE
3,014
2,417
MA JOR PRIVATE SEC TOR EMPLOYERS: Company Product or service
Source: M7
Employment range
Amazon.com Inc. Online retail 1,000+ Health care services
1,000+
Uline Inc.
Shipping and packaging material distrib.
1,000+
Aurora Health Care Inc.
Health care services
500-999
United Hospital System
Carthage College Higher education 500-999 Kenosha Beef International Ltd.
Meat processors
250-499
Ocean Spray Cranberries Inc.
Fruit cannery
250-499
Rust-Oleum Corp.
Paint and coating manufacturer
250-499
Jockey International Inc.
Underwear manufacturer
250-499
Albany-Chicago Corp.
Metal die casting foundry
250-499 Source: M7
8 / BizTimes BUSINESS RELOCATION GUIDE · 2018
STAT S O N TH E R EG I O N General Mitchell International Airport in Milwaukee served 6.9 million passengers in 2017, an increase of 2.4 percent. Airlines added 12 new nonstop flights at MKE in 2017, bringing the total nonstop destinations to 49. The Zoo Interchange in Milwaukee County, the busiest in Wisconsin, is being rebuilt and expanded at a cost of $1.7 billion.
The Milwaukee River runs through downtown.
The Amtrak Hiawatha service, connecting downtown Milwaukee to the Chicago Loop, had 829,000 riders in fiscal 2017, an increase of 2.6 percent.
The seven-county southeastern Wisconsin region has 47,000 businesses and a gross domestic product of more than $100 billion.
The Wisconsin Center in downtown Milwaukee has 186,695 square feet of contiguous exhibit space. There are 2,100 hotel rooms within walking distance of the convention center campus.
More than 60 percent of the region’s residents 25 years of age or older have attended college and 41 percent have earned an associate, bachelor’s or advanced degree. About 80,000 students currently attend a four-year college or university in the region and another 38,000 attend a two-year school. Manufacturing companies provide employment for 15 percent of the southeastern Wisconsin workforce. The Water Council, based at the Global Water Center in Milwaukee, has 180 members. Wisconsin has 1,200 food and beverage manufacturers, ranking fifth in the nation and employing 67,000 people. Industry cluster organization FaB Wisconsin has 200 member companies. Foreign-owned firms employ 30,000 workers in the metro Milwaukee area. Wisconsin’s economy grew at a 3.2 percent annual rate in the third quarter of 2017, according to the latest data from the U.S. Department of Commerce. Wisconsin’s unemployment rate was at 3 percent at the end of 2017, tying the previous low point reached in 1999. Lending in the U.S. Small Business Administration’s 7(a) and 504 loan programs for fiscal 2017 in Wisconsin totaled $650.6 million for 1,503 loans.
General Mitchell International Airport.
Port Milwaukee
A total of 2.6 million metric tons of cargo passed through Port Milwaukee during 2017, an increase of 5.4 percent. The number of vessel visits at the port rose 9.9 percent in 2017, to 301. Exports account for $15 billion of the region’s gross domestic product. Southeastern Wisconsin is one of 28 communities participating in the Global Cities Initiative. Southeastern Wisconsin is part of Foreign Trade Zone 41. Administered by Port Milwaukee, it helps companies manage costs by delaying or reducing duty payments on foreign merchandise. Wisconsin State Fair in West Allis had total attendance of 1,028,049 in 2017, a 1.2 percent increase. Summerfest in Milwaukee had total attendance of 831,769 in 2017, a 3.4 percent increase. It was the 50th anniversary of the music festival. Every year, more than 60,000 people attend conventions and business meetings in Milwaukee.
The Milwaukee Art Museum.
The Milwaukee Art Museum has more than 1,500 works of art displayed on four floors. More than 100,000 bikers are expected to attend Harley-Davidson’s 115th anniversary celebration in Milwaukee this fall. Since its founding in 2005, the Milwaukee 7 regional economic development partnership’s work has resulted in the creation or retention of more than 14,500 jobs in the region Milwaukee is located 90 miles north of Chicago, an hour-and-a-half drive. n
biztimes.com/brg / 9
n FORTUNE 1000 and Inc. 5000
LI ST O F FO R TU N E 1 0 0 0 AN D I N C . 50 0 0 F I R M S I N SO UTH E A STE R N WI SCO N S I N
FORTUNE 1000 FIRMS BASED IN SOUTHEASTERN WISCONSIN 97.
NORTHWESTERN MUTUAL LIFE INSURANCE CO., MILWAUKEE
146. ManpowerGroup, Milwaukee 150. Kohl’s Corp., Menomonee Falls 368. WEC Energy Group Inc., Milwaukee
Northwestern Mutual’s new Milwaukee headquarters building.
435. Harley-Davidson Inc., Milwaukee 442. Rockwell Automation Inc., Milwaukee 471. Fiserv Inc., Brookfield 560. Quad/Graphics Inc., Sussex 618. Snap-on Inc., Kenosha 776. A.O. Smith Corp., Milwaukee 843. Komatsu Mining Corp., Milwaukee 957. REV Group Inc., Milwaukee 958. Rexnord Corp., Milwaukee 997. Briggs & Stratton Corp., Wauwatosa
Source: Fortune
INC. 5000 COMPANIES BASED IN SOUTHEASTERN WISCONSIN 223. WANTABLE INC., MILWAUKEE 442. Penrod Software LLC, Milwaukee 563. Intelligent Video Solutions LLC, Pewaukee 568. Vantage Point Corp., Kenosha 691. Dynamic Solutions Worldwide LLC, Elm Grove 747. Approyo LLC, Muskego 790. Neumann Cos., Pewaukee 1895. Breckenridge Landscape Group, New Berlin Jalem Getz, founder of Wantable.
2108. GSF Mortgage Corp., Brookfield 2185. Delta Defense LLC, West Bend 2760. Patina Solutions Group Inc., Brookfield 2941. Capri Senior Communities, Waukesha 2955. Allium IT LLC, Brookfield 2972. Warehouse-Lighting Com, New Berlin 3219. Bevara Building Services, Waukesha 3288. RSP Inc., West Milwaukee 3345. Concurrency Inc., Brookfield 3429. OnCourse Learning Corp., Brookfield 3689. Wonderbox Technologies LLC, Mequon 4302. Millennium, Delavan 4193. Ascedia Inc., Milwaukee 4275. Symmetry LLC, Brookfield 4548. Midwest Insurance Group LLC, Delafield 4570. The Boelter Cos. Inc., Waukesha 4592. TAPCO LLC, Brown Deer 4608. Tim O’Brien Homes Inc., Pewaukee 4653. FabriFast LLC, Hartford 4742. Kowal Investment Group LLC, Waukesha 4852. Superior Support Resources Inc., Brookfield
10 / BizTimes BUSINESS RELOCATION GUIDE · 2018
Source: Inc.
R ACI N E CO U NT Y KEY CITIES AND VILLAGES (POPULATION):
$ $ $
77,742
POPUL ATION: 195,080
RACINE
UNEMPLOYMENT RATE: 3.3%
MOUNT PLEASANT
L ABOR FORCE: 99,649
CALEDONIA
PER-CAPITA INCOME: $43,486 MEDIAN HOUSEHOLD INCOME: $57,232 Source: M7
26,272
24,684
BURLINGTON
10,650
STURTEVANT
6,960
WATERFORD
5,358
MA JOR PRIVATE SEC TOR EMPLOYERS:
Source: M7
Company
Product or service
Employment range
Wheaton Franciscan Healthcare
Health care services
1,000+
S.C. Johnson & Son Inc.
Household products
1,000+
CNH America Farm machinery 1,000+ Emerson Electric Co. Household appliances 500-999 Ruud Lighting Lighting fixtures 500-999 Aurora Health Care Inc.
Health care services
500-999
Echo Lake Foods Inc.
Frozen foods manufacturer
250-499
BRP US Inc. Marine engines 250-499 Nestle USA Inc. Chocolate 250-499
Source: M7 biztimes.com/brg / 11
n business climate
Come in!
W E ARE O P E N
available for businesses meeting certain requirements within designated enterprise zones. Wisconsin’s 7.5 percent manufacturing and agriculture tax credit also reduces the corporate tax rate for entities in those industries to 0.4 percent, on top of an exemption for manufacturing equipment and machinery from the state’s personal property tax. A real-time market pricing program offered by We Energies helps reduce utility costs for large companies, and income tax cuts signed into law by Walker in 2013 have meant further savings for businesses. “Wisconsin is known for its high-quality workforce, education system, quality of life and competitive tax climate, to name a few, and these are some of the reasons Foxconn is investing in one of the largest economic development projects in U.S. history here in Wisconsin,” said Amy Hasenberg, Walker press secretary, in an email.
“I probably get four to five unsolicited calls from Illinois companies a month.” WI SCO N S I N O F F E R S B U S I N E S S - F R I E N D LY CLI MATE By Lauren Sieben, for BizTimes WISCONSIN HASN’T BEEN SHY in its efforts to poach businesses from Illinois. Weeks after he assumed office in 2011, Gov. Scott Walker revived the old state tourism slogan, “Escape to Wisconsin,” in an appeal to employers in Illinois. Seven years and several high-profile relocations later, Wisconsin’s eagerness to welcome companies relocating from south of the border is punctuated by pro-business policies and tax incentives at the state and local levels. “We used to make regular outreach to Illinois and we could rarely even get our phone calls returned,” said Jim Paetsch, vice president of corporate relocation, expansion and attraction at the Milwaukee 7 regional economic development partnership. “Fast forward to 2018, I prob-
12 / BizTimes BUSINESS RELOCATION GUIDE · 2018
ably get four to five unsolicited calls from Illinois companies a month.” Although Wisconsin competes with states like Indiana, Michigan and Iowa to recruit companies, Paetsch points to a few key factors that differentiate Wisconsin. For one, Wisconsin’s status as a right-to-work state separates it from neighboring Illinois and Minnesota, where unions remain relatively strong. “When you’re talking about major labor investment in terms of payroll, big companies don’t like risk,” Paetsch said. “Right-to-work takes away some of that labor risk, which gets them a little more comfortable with the predictability of the environment that’s here.” Tax incentives also help sweeten the deal for business owners, Paetsch said. The Wisconsin Economic Development Corp. is a public-private agency created by Walker in 2011 as part of his initiative to bring jobs to the state. The agency is responsible for administering tax credits, including the business development tax credit, which has been awarded to 79 companies in the two years since it was created. The credit is expected to create nearly 10,000 jobs and generate more than $900 million in capital investment, according to the WEDC. The agency also distributes the enterprise zone tax credit, a refundable credit
—Jim Paetsch, Milwaukee 7
Foxconn Technology Group made a splash when the company announced in 2017 that it would invest $10 billion to create up to 13,000 jobs at a plant in Mount Pleasant. The state is providing a $3 billion incentive for Foxconn. The move also put southeastern Wisconsin on the radar of business owners both in Illinois and further afield. “Foxconn is not the be-all-end-all, but it’s a beacon to let everybody know what a few companies have realized and an awful lot more are starting to get,” said Wisconsin Assembly Speaker Robin Vos. Walker also recently announced the formation of the Wisconsin Career Creator, a $20 million initiative that will support workforce development for electronics manufacturing jobs in conjunction with colleges and universities across the state. In addition to a well-equipped workforce, Wisconsin’s financial stability is attractive to outof-state business owners, Vos said. The state’s fully-funded pension program is a plus for Wis-
consin, particularly in the eyes of business owners who are disillusioned with state pension and budget woes in Illinois. “One of the biggest advantages Wisconsin has going is that we’re next to Illinois,” Vos said. “They’re so dysfunctional, any (business owner) who is reasonable will say Wisconsin is the obvious choice.” Beyond statewide initiatives, Paetsch credits border towns in Kenosha and Racine counties for further incentivizing businesses to move north. Companies including Kenall Manufacturing Co., Colbert Flexographic Packaging Corp., Toolamation Services Inc., FNA Group Inc. and Vonco Products LLC have relocated from Illinois to Kenosha County in recent years, bringing new jobs to the region in their wake. The Kenosha Area Business Alliance has been heavily involved in working to attract companies to Kenosha County. In Racine County, the Racine County Economic Development Corp. fills that role. “(Kenosha and Racine) are really aggressive on the incentive side. They’re not bashful about deploying TIF when they see the benefits of having those companies in their counties,” Paetsch said. “They’re much more willing to look at putting money into the right deals to secure them in real time.” n
TO P 5 P ROJ EC T S TO R ECE IVE WE D C S U P P O R T I N 2 017 WISCONSIN’S $3 BILLION incentive package for Foxconn drew all the headlines, but the state also provided nearly $120 million in tax credits and loans for 58 other projects in 2017. The exact amount eventually received is usually a function of how much a company invests in capital improvements, job creation, workforce development or Wisconsin suppliers. Here are the five largest projects to receive support in 2017:
R A N K
COMPANY
LOCATION
PROJECT COST
# OF JOBS TO CREATE/ RETAIN
TAX CREDITS AWARDED
1
Foxconn Technology Group
Mount Pleasant
$10.02B
13,000/0
$2.85B
2
Kwik Trip Inc.
La Crosse
$309M
329/0
$21M
3
Haribo of America Inc.
Pleasant Prairie
$220M
385/0
$21M
4
Epicentre Technologies Corp.
Madison
$148.4M
20/114
$750,000
5
Saputo Cheese USA Inc.
Almena
$89.5M
92/105
$3M
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n relocation helpers
R E LOC ATI O N H E LP E R S
WEDC
K ABA
The Wisconsin Economic Development Corp. is a public-private agency that leads economic development efforts for the state by providing resources, operational support and financial assistance to companies and communities in Wisconsin. WEDC works with more than 600 partners across the state, including regional economic development organizations, academic institutions and industry clusters.
The Kenosha Area Business Alliance works to support and expand the existing business base through retention and consolidation strategies; position Kenosha County for long-term economic growth; attract and retain talent; ensure the county is economically, digitally and physically connected; and build a distinct image and brand for the county.
MMAC The Metropolitan Milwaukee Association of Commerce is a private, nonprofit organization that represents about 1,800 member businesses with 300,000 employees in Milwaukee, Waukesha, Washington and Ozaukee counties.
Racine Area Manufacturers and Commerce serves as a voice representing the common interests of organizations in Racine – small and large, industrial and retail, for-profit and nonprofit – by offering pro-business and pro-community programs and initiatives.
M7
RCEDC
The Milwaukee 7 was formed in 2005 to create a regional, cooperative economic development platform for the seven counties of southeastern Wisconsin: Kenosha, Milwaukee, Ozaukee, Racine, Walworth, Washington and Waukesha. Its mission is to attract, retain and grow diverse businesses and talent.
The Racine County Economic Development Corp. is a private, nonprofit organization created in 1983 to build and maintain a strong economic base in Racine County. The organization provides services to help businesses with expansion, relocation, financing and workforce development projects
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I N S I N K E R ATO R P ROJ EC T B R I N G S L AB S U N D E R O N E ROO F By MaryBeth Matzek, for BizTimes WHEN GARBAGE DISPOSAL MANUFACTURER InSinkErator opens its new headquarters and lab facility this July in Mount Pleasant, the company will bring together six separate labs under one roof. Emerson Electric Co., InSinkErator’s St. Louis-based parent company, announced plans last year for the $34 million project at the southwest corner of Highway 20 and International Drive. In addition, the company will spend $29 million to improve its existing Racine manufacturing facility. That project will improve workflow and make other changes to the facility. It will be complete in 2019. The new 85,000-square-foot headquarters in Mount Pleasant will house 175 engineers and professional staff, who are currently located at InSinkErator’s headquarters on 21st Street in Racine. The facility will include 20,000 square feet of lab space, consolidating six labs from other locations in Racine County, said Carol Baricovich, director of global brand communications and government relations for InSinkErator. “We are quite excited to bring all of our engineers and tech together under one roof and especially enthused about furnishing them with the latest technologies that will enable them to function in a more efficient, advanced and collaborative way,” she said. Location played a key role in Emerson’s decision of where to place its new facility, Baricovich said. “You can’t beat the convenient access we will have to the I-94 corridor and to our region’s airports to serve our customers and for our suppliers to visit us,” she said. Baricovich said the new facility will include several new technologies, including a 3-D printer and a hemi-anechoic chamber, which absorbs sound reflections and helps engineers in their efforts to make disposals quieter. n
2
AMA ZO N ’ S MA S S IVE K E N OS HA FACI LIT Y F U LFI LL S CO N S U M E R S’ N E E DS By MaryBeth Matzek, for BizTimes
DRIVING NORTH FROM CHICAGO on I-94, you cannot miss the gigantic Amazon fulfillment and distribution centers in Kenosha. The 1.1 million-square-foot fulfillment center, which is roughly the size of 20 football fields, opened in 2015, while the 500,000-square-foot distribution center opened in late 2014. The online retailing giant employs 2,500 at the site, which is just east of the interstate’s intersection with Burlington Road. As more shopping shifts online, Amazon will likely add more local employees. For example, the retailer announced plans last summer to hire 50,000 additional workers across the country, including some at the Kenosha site. The facility’s conveyer belts, bins and multiple storage areas make it easy for employees to pick, pack and ship a range of merchandise, from books and DVDs to toys and baby supplies. Every product carries a barcode, so employees can easily find what they need in the giant facility with handheld scanners, and robots are used to move stacks of merchandise. The Kenosha fulfillment center is one of more than 70 regional Amazon centers in the United States. Most full-time employees start out earning between $12.25 and $13.25 per hour and receive full benefits, including health insurance, 401(k) and company stock awards. The plant’s location right off the interstate makes it easy to attract employees from both the Milwaukee and Chicago metro areas. When Amazon selected Wisconsin as a site for one of its fulfillment centers, the state offered the company $10.3 million in tax credits over 11 years through the Wisconsin Economic Development Corp.’s Enterprise Zone Tax Credit Program for job creation and capital investment. Within a year of opening, Amazon had already met and exceeded its plans to hire more than 1,250 employees and spend $155 million on capital investment. n biztimes.com/brg / 15
n major projects
FOXCO N N CO M P LE X A MA S S IVE FO R E I G N I NVE STM E NT I N WI SCO N S I N By MaryBeth Matzek, for BizTimes FOXCONN TECHNOLOGY GROUP’S PL ANS to build a $10 billion manufacturing campus in southern Racine County will dramatically change the region for years to come. The July 2017 announcement by Taiwan-based Foxconn is the largest-ever investment made by a foreign company in Wisconsin. The 22 million-square-foot campus will be used to build LCD screens, which are used in phones, TVs, computers and other electronic devices. Foxconn, the world’s largest contract electronics manufacturer, plans to hire up to 13,000 employees to work in Wisconsin by 2022. To be located just east of I-94 and north of Highway KR in Mount Pleasant, the proposed Foxconn campus includes three buildings that top 1.5 million square feet. Construction could begin as soon as April, according to air permitting documents submitted to the Wisconsin Department of Natural Resources. The first building could open in 2019, allowing Foxconn to start assembling TVs and other products while work continues on the rest of the complex. While construction has yet to start, Foxconn has begun hiring and leasing space in a local industrial building to begin TV assembly operations. Wisconsin beat out several other states for the new manufacturing facility. In making its decision, Foxconn cited the state’s strong manufacturing history, reliable power supply, access to Lake Michigan (making LCD screens requires water), high-quality university and technical college system, and close proximity to Chicago. As part of its package to recruit Foxconn, the state promised $3 billion in incentives during the next 15 years for the project, as long the manufacturer meets defined investment and hiring targets. To make the massive Foxconn complex possible, state and county entities are upgrading transportation and water and sewer infrastructure in the area. Village and county officials are providing a $764 million local investment in the project, including infrastructure upgrades. The state will spend an additional $252 million to expand I-94 and $134 million on local road construction projects for the Foxconn campus, while $160 million in water and sewer upgrades are planned. Foxconn estimates its operations in Wisconsin will generate about $7 billion in annual revenue once it is up and running. n
4
G R AN D AP P LIAN CE FI N DS I D E AL LOC ATIO N N O R TH O F TH E BORDER By MaryBeth Matzek, for BizTimes
WHEN LEADERS AT GRAND APPLIANCE INC. in Zion, Illinois, began planning a new headquarters and distribution center, finding the right location to power the company’s continued growth was key. They found it across the state line, in Sturtevant in Racine County. Grand Appliance moved in February into its new 137,000-square-foot facility on an 11-acre site in the southern portion of Renaissance Business Park off of Highway 20 and just east of I-94. The new location replaces the previous company headquarters in Zion and consolidates warehouses in New Berlin and Zion. Construction began last July on the $8 million facility. It will bring a total of 144 jobs to Sturtevant, with 120 jobs being moved from the Zion headquarters and distribution center and the New Berlin warehouse, and an additional 22 jobs to be created during the next three years. Grand Appliance president Mark Reckling said the new headquarters provides the company with the space it needs to meet the growing demand for its products and will improve service to its 20 stores in Wisconsin, Illinois and Iowa. “Southeast Wisconsin provides an ideal location that supports Grand Appliance and TV’s growth plans,” he said in a statement when the move was first announced in March 2017. Grand Appliance received financial incentives from the Wisconsin Economic Development Corp. and the Village of Sturtevant for the project. The WEDC will provide up to $500,000 in tax credits over the next three years, with the final total contingent on the number of jobs created and the level of capital investment made, while Sturtevant is providing $450,000 in tax increment financing. The family-owned Grand Appliance was founded in 1930. Over the years, it evolved from selling electrical supplies and light fixtures to selling appliances and mattresses. n
16 / BizTimes BUSINESS RELOCATION GUIDE · 2018
HAR I B O TO B U I LD FI R ST U. S . P RO D U C TIO N FACI LIT Y I N K E N OS HA CO U NT Y By MaryBeth Matzek, for BizTimes IT WAS SWEET NEWS FOR WISCONSIN when Haribo of America Manufacturing LLC revealed plans in March 2017 to build a $242 million, 500,000-square-foot production facility in Pleasant Prairie in Kenosha County. The Germany candy maker, which is known internationally for its Gold Bears gummy bears, plans to employ 385 workers at its first-ever North American production facility. Haribo of America Inc.’s corporate headquarters is located in Rosemont, Ill. Haribo closed on the purchase of 136.8 acres in the Prairie Highlands Corporate Park in December. Plant construction will begin this year, with candy production slated to start in 2020 – the company’s 100th anniversary. Haribo of America is the nation’s fastest growing confectionery company and starting production in the United States was important for future growth, said Hans Guido Riegel, managing partner. The company searched several years to find the ideal location to build its massive factory, said Rick LaBerge, executive vice president and chief operating officer. Based in Bonn, Haribo produces the top-selling gummy bear in the United States. Worldwide, the company produces 100 million gummy bears daily at its 16 production facilities in 10 countries. Once the initial project in Pleasant Prairie is completed, Haribo plans to invest more than $300 million and create another 720 full-time jobs during the next 12 years, according to a Wisconsin Economic Development Corp. report. The project is supported by $21 million in tax credits from the WEDC. As part of the agreement, the company needs to create 385 jobs, make $220 million in capital investments, invest in job training and use other Wisconsin companies as suppliers. Haribo is the first tenant in the new Prairie Highlands Corporate Park, which is located just west of I-94 and two miles north of the Illinois state line. n
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n testimonials
CO M PAN I E S THAT M OVE D N O R TH O F TH E B O R D E R HAP PY WITH TH E I R D ECI S I O N By Kristine Hansen, for BizTimes
Terry Gou, chairman of Foxconn, and Gov. Scott Walker at the company’s announcement of its Wisconsin factory.
18 / BizTimes BUSINESS RELOCATION GUIDE · 2018
PRESTIGE METAL PRODUCTS’ move to Bristol, Wisconsin last year – after 40 years in Antioch, Illinois – felt like home for owner and president John Annessi. Not only did he grow up in Kenosha County, but he also commuted to Antioch from Whitewater, Wisconsin for the past 20 years (he’s since moved to Salem). With a pressing need for a bigger space, the sheet metal fabricator had put out feelers in both Wisconsin and Illinois. The best opportunity happened to be in Bristol, at an 85,000-square-foot facility four times larger than the one in Antioch. Not only northern Illinois companies are drawn to southeastern Wisconsin. Seattle-based Amazon.com Inc. opened its Kenosha fulfillment center in 2015. Last summer, Taiwan’s Foxconn Technology Group announced plans to open a massive factory in Mount Pleasant, its first in the U.S. Even so, many companies in Lake County, Illinois, are moving into Wisconsin, enticed by lower tax rates, tons of open land and the option to have a brand new, state-of-the-art facility (as opposed to upgrading an aging one). Lighting manufacturer Kenall Manufacturing Co. relocated from Gurnee, Illinois, to Kenosha in 2014, building a 354,000-square-foot, temperature-controlled factory. “The plant is air-conditioned, compared to our former location, where the employees were working in 95-degree-plus temperatures in mid-summer,” said Randy Hernandez, executive vice president of operations. Kenall considered more than 50 locations in Illinois and surrounding states, boiling it down to two in Illinois and two in Wisconsin. “Wisconsin was selected as our place for business because of its pro-business local- and state-level environments,” Hernandez said. “Wis-
consin educational institutions proactively approached us with labor training, technical and management education programs. They created a huge, mutual win-win for our employees and the company.” He also pointed to a better tax rate for manufacturers in Wisconsin than in Illinois. A trio of economic development agencies (Kenosha Area Business Alliance, Milwaukee 7 and Wisconsin Economic Development Corp.), he said, were extremely responsive, championing Kenall’s eventual relocation. “Local governments, at both the city and county levels, worked closely with economic development entities, providing fast tracks to construction services,” Hernandez said. “They worked with us to ensure our needed amenities and business service providers from local municipalities had the capacity to satisfy operations.” L&M Corrugated Container Corp. had a similar experience with Wisconsin’s government when inquiring about a move. Outgrowing its space, the company desperately needed to upgrade. “We reached out to both Wisconsin and Illinois, and Wisconsin contacted us very quickly,” said president Steven Lopes, whose grandfather Dick Lopes started the business in Zion, Illinois, in 1979. “I don’t even think Illinois contacted us until we had a purchase agreement on the building.” L&M received a call from Wisconsin Lt. Gov. Rebecca Kleefisch’s office within a week. “It was kind of a no-brainer (to move into Wisconsin) after that,” Lopes said. The new plant in Pleasant Prairie (another one is in Platteville) has a new dock, streamlined processes and a new batch of clients. Growing pains have forced many companies into Wisconsin, including Prestige Metal Products. “We knew we had to expand,” Annessi said. “We had a lot of longtime and younger employees who wanted to expand and move along with our journey.” Annessi himself climbed the ranks, starting as a janitor and moving into the role of plant manager. Four years ago, he bought out the owners. Because several employees already lived in Wisconsin, the move didn’t ruffle any feathers. But the new location does aim to bring in more Wisconsin business while still retaining Illinois clients. “Being this close to (I-94), transportation is a breeze,” Annessi said. Whenever a company moves to a new city, there’s a possibility employees won’t opt to move, too. Hiring and training new workers can be expensive.
Gov. Scott Walker (middle) at the groundbreaking for Kenall Manufacturing’s Kenosha headquarters.
“We had a lot of longtime and younger employees who wanted to expand and move along with our journey.” —John Annessi, President, Prestige Metal Products
“We did not lose a single employee in the move,” Lopes said. In fact, L&M added between 20 and 30 percent more employees. Kenall made no secret that it was shopping around for a new headquarters city. “We shared (with our employees) timing and which states were under consideration,” Hernandez said. “Based on employee feedback and the fact that we wanted to retain as much indigenous knowledge as possible, it was decided to limit our company move to within a 20-mile radius.” “Our employees like working in Wisconsin,” Hernandez said. “The pleasant surprise for them was that there are a lot more amenities, with more popping up every day, along the I-94 corridor in Wisconsin than originally anticipated.” Some workers at Kenosha County’s newest companies got shorter commutes. “Many of our Kenosha-based employees already lived in Wisconsin prior to the relocation,” said Jim Hamilton, president of Colbert Packaging Corp., which opened a 173,000-square-foot
flexographic printing facility in the Business Park of Kenosha in 2016. The company is based in Lake Forest, Illinois, 30 miles south. “Cheryl Moe, our corporate quality systems manager, moved from Illinois to Wisconsin in 2000. She owns six acres in Paris township and says her property taxes are far less than what they would be in Illinois,” Hamilton said. That Wisconsin has a long history of paper-making positioned it as a great place to open Colbert Packaging’s facility, he said. Finding the right property sealed the deal. “It was unique in that it provided Colbert an opportunity for both build-to-suit and quick occupancy,” Hamilton said. Moving across the state line hardly affects day-to-day operations – especially if the company is doing business globally. “Whether we’re conducting business in Wisconsin or Illinois, there isn’t much difference in how business is conducted with clients,” Hernandez said. n
biztimes.com/brg / 19
n business climate
AF FO R DAB LE S ITE S AR E R E ADY FO R D E VE LO P M E NT I N SO UTH E A STE R N WI SCO N S I N By Corrinne Hess, staff writer WHEN THOMAS BOYLE, principal in Transwestern’s Rosemont, Illinois office, suggested sites in southeastern Wisconsin to companies 10 years ago, clients would agree to look, but ultimately choose Lake County, Illinois. About five years ago, the pendulum began to swing. “Illinois companies looked at me and said, ‘Get me out of here,’” Boyle said. “Taxes are only going north (in Illinois). The one thing Kenosha County always lacked was critical mass for distribution and white-collar labor. But with all of the new companies moving up there – Haribo, Foxconn, Uline – I think Kenosha County is approaching that critical mass.” In September, Boyle brokered the $14.5 million sale of the former Dairyland Greyhound Park in Kenosha to California developer Majestic Realty Co., which is planning a massive industrial park that could reach up to 2.2 million square feet of development. Boyle also recently sold 52 acres of vacant land just south of the Amazon fulfillment and distribu-
tion centers in Kenosha to an Illinois corporation planning to develop spec industrial buildings. “Land is cheaper, utilities are cheaper, cost of construction is cheaper and labor is cheaper (in southeastern Wisconsin than in Illinois). It is a winning dynamic,” Boyle said. Over the past five years, momentum has grown along the I-94 north-south corridor. Several outof-state companies have taken advantage of Wisconsin’s business-friendly environment, often facilitated with tax incentives through the Wisconsin Economic Development Corp. In addition to Uline’s more than 2 million square feet of space, Amazon built a $250 million complex on 165 acres along I-94 in Kenosha. Haribo of America Inc., the Rosemont, Illinois-based subsidiary of the German gummy bear maker, will build its first U.S. manufacturing facility in Pleasant Prairie this year. The $242 million project will include a 500,000-square-foot facility in the Prairie Highlands Corporate Park, west of I-94 between highways 165 and 50. But the biggest project is Foxconn Technology Group’s plans to build a $10 billion, 20 millionsquare-foot LCD panel manufacturing complex just east of I-94, between Braun Road and Highway KR in Racine County. Wispark LLC’s LakeView Corporate Park, located in Pleasant Prairie along Highway 165, about two miles east of the interstate, is credited with being the first project to change the landscape along the I-94 north-south corridor. The 2,400-acre master-planned, mixed-use development opened in July 1988. Today, there are 10 Class A business parks from Ryan Road in southern Milwaukee County to the
“Land is cheaper, utilities are cheaper, cost of construction is cheaper and labor is cheaper. It is a winning dynamic.” — Thomas Boyle, Transwestern
state line that have parcels actively available for sale, said Jeff Hoffman, a partner with Cushman & Wakefield | The Boerke Co. Total availability is more than 1,100 acres. The average sale price for shovel-ready industrial land in Lake County, Illinois is approximately $7 to $8 per square foot, or $305,000 to $350,000 per acre. Along the I-94 corridor in Wisconsin, the average price is $2.25 to $3.50 per square foot, or around $100,000 to $150,000 per acre, Hoffman said. Hoffman said Kenosha and Racine counties have been attractive because there are large parcels of land available that can easily accommodate buildings north of 200,000 square feet. “Because the sites are already zoned industrial and have utilities, you could find a site, get control and get permits in 60 to 120 days,” Hoffman said. “Many of these parks are shovel-ready.” n
R ACINE COUNT Y BUSINESS PARK PRICING PARK
DEVELOPER
AVAILABILITY
PRICING
WISPARK CALEDONIA BUSINESS PARK
WISPARK
175 ACRES
N/A
OAKVIEW BUSINESS PARK
WISPARK
115.09 ACRES
$102,OOO - $142,000 PER ACRE
RENAISSANCE BUSINESS PARK
MLG DEVELOPMENT
4.1 ACRES - 10.9 ACRES
$99,000 PER ACRE
MT PLEASANT COMMERCE
MLG DEVELOPMENT
90.13 ACRES
$125,000 PER ACRE
ENTERPRISE BUSINESS PARK
ASHLEY CAPITAL
65.4
SUBJECT TO OFFER
GRANDVIEW BUSINESS PARK
WISPARK
3.32 - 46.5 ACRES
3.32 ACRES FOR $108,900 PER ACRE, WITH LARGER SITE SUBJECT TO OFFER
LAKEVIEW CORPORATE PARK
WISPARK
4.11 - 33.9 ACRES
$172,062 - $185, 130 PER ACRE
VILLAGE OF PLEASANT PRAIRIE
323.20 ACRES
SUBJECT TO OFFER
ZILBER
1.43, 2.23 AND 15 ACRES
SUBJECT TO OFFER
MAJESTIC REALTY
228.44
SUBJECT TO OFFER
PLEASANT PRAIRIE BUSINESS PARK OF KENOSHA MAJESTIC MIDWEST INNOVATION CENTER
Source: Cushman & Wakefield | The Boerke Co. 20 / BizTimes BUSINESS RELOCATION GUIDE · 2018
M O R E ROAD E XPAN S I O N S U N D E RWAY I N SO UTH E A STE R N WI SCO N S I N By Elizabeth Clarke, for BizTimes TRUCK TRAFFIC is the dominant freight transportation mode in Wisconsin, and southeastern Wisconsin is the busiest region. Numerous interstates and U.S. routes service the region, offering convenient access to the state’s major throughways. The state’s longest highway enters Wisconsin from Illinois through its southeastern corner. A project to widen I-94 from six lanes to eight between College Avenue in Milwaukee County and Highway 142 in Kenosha County will begin in 2019.
The project is estimated to cost $525 million. Along I-94, seven frontage roads between Highway 20 and Highway KR will also be improved to accommodate the Foxconn Technology Group complex to be built in Racine County. The roads project is budgeted to cost between $17 million and $20 million. Work on the west frontage road is scheduled for March. Work on the east frontage road will follow and is expected to finish in November. Also spurred by Foxconn’s move to Racine County, state highway planners are performing a feasibility study for an autonomous vehicle lane on I-94. The lane is proposed to run between the Foxconn development site and Milwaukee’s General Mitchell International Airport. The Wisconsin Department of Transportation will resurface an estimated 2.5 miles of Wisconsin Highway 20 between I-94 and County Highway H in March. The work will improve road conditions on Highway 20 in anticipation of increased use due to developments in Racine County. WisDOT is also working with the Village of Mount Pleasant and Racine County to reconstruct several state, village and county roadways in Racine County. Currently, these roads are in the de-
sign and planning phase, with construction scheduled to begin in summer 2018 and end in fall 2020. Work on the 12 miles of interstate between Highway 20 and College Avenue is expected to be completed between 2019 and 2020, at an estimated $275 million to $325 million cost. The job will include reconstruction of the interchanges at Highway K, Seven Mile Road, South 27th Street and Ryan Road. Further north on I-94 in Milwaukee, a polymer overlay was recently applied throughout the Marquette interchange to ensure the bridges last the 75-year life expectancy. The interchange was reconstructed in 2008, costing approximately $900 million. The I-894 stretch between West National Avenue and South 84th Street in Milwaukee County will be resurfaced in 2018. As part of the resurfacing, the pavement is being stripped and a fourth lane will be added to reduce congestion and improve the transition of traffic through the Zoo Interchange. Work on the $1.7 billion Zoo Interchange reconstruction project, in western Milwaukee County, is ongoing. It is the busiest interchange in Wisconsin. n
S O U T H E A S T E R N W I S CO N S I N T R A N S P O R TAT I O N S YS T E M S PORT MILWAUKEE
Port Milwaukee handled 2.57 million metrics tons of cargo in 2017. The Wisconsin Commercial Ports Association estimates that 14 Wisconsin commercial ports handle more than 30 million tons of cargo valued at greater than $2.4 billion each year.
GENERAL MITCHELL INT’L AIRPORT
A total of 6.9 million passengers flew out of or into General Mitchell International Airport in Milwaukee in 2017, up from 6.8 million in 2016. The airport serves 49 destinations nonstop. It also runs cargo charter services with Federal Express, UPS, DHL and the United States Postal Service. MKE is the only airport in Wisconsin or Illinois with service from all the major domestic airlines. Other airports in southeastern Wisconsin include Lawrence J. Timmerman Airport in Milwaukee, Waukesha County Airport (Crites Field), John H. Batten Airport in Racine and the Kenosha Regional Airport.
FREIGHT RAILS
Nearly 4,200 miles of track comprise Wisconsin’s freight railroad network, which is served by four major (Class I) railroads, three regional railroads, two local railroads and one switching and terminal railroad. According to Forward Wisconsin, the state’s 10 railroads carry nearly 3 million carloads of freight weighing in at more than 160 million tons each year.
PASSENGER RAIL SERVICES
Southeastern Wisconsin is served by three passenger rail services. »» Amtrak routes: The Hiawatha Service, a corridor service operating seven round trips per day (six on Sunday) between Chicago and Milwaukee; The Empire Builder, a longdistance train operating one round trip per day between Chicago and Seattle/Portland. »» Metra’s Union Pacific/North Line’s northernmost station is located in Kenosha. From Kenosha, the line runs 51.6 miles south to the Ogilvie Transportation Center in Chicago.
biztimes.com/brg / 21
n hotels & meeting facilities
MA J O R H OTE L S AN D
H OTE L S
M E E TI N G FACI LITI E S
Hilton Milwaukee City Center | Milwaukee | 729 rooms
I N SO UTH E A S TE R N
Hyatt Regency | Milwaukee | 481 rooms
WI SCO N S I N
Potawatomi Hotel & Casino | Milwaukee | 381 rooms The Pfister Hotel | Milwaukee | 307 rooms Milwaukee Marriott West | Pewaukee | 281 rooms DoubleTree by Hilton Milwaukee Downtown | Milwaukee | 243 rooms InterContinental | Milwaukee | 221 rooms The Westin Milwaukee | Milwaukee | 220 rooms Milwaukee Marriott Downtown | Milwaukee | 205 rooms Embassy Suites by Hilton Milwaukee | Brookfield | 203 rooms Crowne Plaza Milwaukee West | Wauwatosa | 198 rooms Crowne Plaza Milwaukee Airport | Milwaukee | 194 rooms Country Springs Hotel | Water Park and Conference Center | Waukesha | 187 rooms Courtyard by Marriott Milwaukee Downtown | Milwaukee | 169 rooms
p The Iron Horse Hotel, Milwaukee
Aloft Milwaukee Downtown | Milwaukee | 160 rooms The Kimpton Journeyman Hotel | Milwaukee | 158 rooms Ambassador Hotel | Milwaukee | 132 rooms DoubleTree by Hilton | Racine | 121 rooms DoubleTree by Hilton | Pleasant Prairie | 120 rooms Best Western Executive Inn | Kenosha | 114 rooms The Iron Horse Hotel | Milwaukee | 100 rooms
M E E TI N G FACI LITI E S p The Hilton, Milwaukee
Wisconsin Center | Milwaukee Potawatomi Hotel & Casino | Milwaukee Italian Community Center | Milwaukee Wisconsin Exposition Center | West Allis Miller High Life Theatre | Milwaukee The Milwaukee Athletic Club | Milwaukee Miller Park Conference Center | Milwaukee Discovery World | Milwaukee
p The Hyatt Regency, Milwaukee
Harley-Davidson Museum | Milwaukee Grain Exchange | Milwaukee South Second | Milwaukee Milwaukee Public Museum | Milwaukee Anderson Arts Center | Kenosha Circa on Seventh | Kenosha DeKoven Center | Racine Festival Hall | Racine
p The InterContinental, Milwaukee 22 / BizTimes BUSINESS RELOCATION GUIDE · 2018
All photos courtesy of VISIT Milwaukee
K E N OS HA CO M M UTE R S A TAP PAB LE WO R K FO RCE By Kathleen Newcomb, for BizTimes Nearly the midpoint between Milwaukee and Chicago, along the I-94 corridor, is Kenosha: a vibrantly growing Wisconsin community with a strong manufacturing history on a journey of reinvention. With its prime location on the western shore of Lake Michigan and convenient access to railway lines, Kenosha was a sought-after location for manufacturing in the 19th and 20th centuries. Workers flocked to find employment in factories producing iron beds, wagons and eventually automobiles, which boosted the community’s economy with auto and engine plants until 2010, when Chrysler closed its engine production line. The downturn of manufacturing in the United States greatly affected many Midwestern cities, including Kenosha. The legacy of industrialization was being outsourced and former hardworking plant workers found themselves out of a job that
sustained families in prior decades. Reinvention was necessary for survival. Todd Battle, president of the Kenosha Area Business Alliance, believes in Kenosha’s renaissance. “Kenosha used to be a Todd Battle heavy manufacturing community and deindustrialization hit us hard,” he said. “However, we are a resilient community.” With both population and economic sprawl, Kenosha is now a community of nearly 100,000. But according to 2016 KABA study “The Kenosha County Out-Commuter Survey,” of the nearly 78,000 employed Kenosha residents, 45 percent, or nearly 35,000, commute out of the county for work. “This was not a surprising or a new stat,” Battle said. “A lot of circumstances need to be considered with this number. We are somewhat of a bedroom community since we are in between two large commerce centers.” With the Chicago area hosting 33 Fortune 500 companies and the Milwaukee area featuring nine, opportunities for growth are attractive and more abundant in cities with these kinds of numbers for job seekers. However, Kenosha has seen some of southeastern Wisconsin’s most significant business and job development in recent years, including major projects by Amazon.com Inc., Uline Inc. and Kenall Manufacturing Co., plus a planned facility for Haribo USA.
AMAZON.COM INC. INDUSTRY: Fortune 50 online retailer PROJEC T: 1.5 million-square-foot fulfillment and sortation center JOBS: 2,500 INVESTMENT: $300 million+
HARIBO USA INC. INDUSTRY: Germany-based confectionery company PROJEC T: Planned 500,000-square-foot advanced manufacturing facility JOBS: 400 INVESTMENT: $242 million
biztimes.com/brg / 23
n business climate ULINE INC.
The view inside one of the Uline distribution centers.
And then there is the potential to woo suppliers for the highly anticipated Foxconn Technology Group development in Kenosha’s neighboring county, Racine. “We are a prime location for future supplier business and are happy to work with suppliers and distributors on future opportunities,” Battle said. Just as Kenosha’s economy benefitted from its proximity to transportation outlets for shipping in the 19th and 20th centuries, the same holds true for the 21st century; and businesses are seeing Kenosha as a major distribution hub. But with 45 percent of its working residents commuting out of the county for work, there are opportunities for businesses to relocate to Kenosha to tap into a ready-made workforce that may prefer to work closer to home.
Kenosha’s well-established economic hubs, business-friendly and experienced civic leaders, and welcoming tax policy are a combination that continues to attract new development and spur expansion of existing developments. “Since the Chrysler plant closed, we made the conscious choice to diversify our economic strategy and industry base for the community,” Battle said. “Instead of relying on one industry (automotive) to support our community, we have branched out into multiple areas, such as medical, plastics and LED manufacturers. We are more insulated from any one company employing a majority our of community’s workforce. It affords a much healthier outlook in the long run.” And if you’re looking for another reason Kenosha is an attractive business center, just ask those 45 percent of commuters in the KABA survey. When asked if they would consider taking a comparable job closer to home to cut down on their commute time and increase their quality of life, a majority said “yes.” “We hear it all the time from companies that relocate here: Kenosha is a welcoming community not only for business development, but also for workforce development,” Battle said. “The people of Kenosha have a great work ethic and the employers who come here reap the benefits of our conscientious and caring attitude.” n
INDUSTRY: Shipping, industrial and packaging material distributor PROJEC T: Two 1 million-square-foot distribution centers, and two 250,000-square-foot headquarters office buildings. JOBS: ABOUT 1,000 INVESTMENT: $175 million
KENALL MANUFACTURING CO. INDUSTRY: LED lighting manufacturer PROJEC T: 354,000-square-foot headquarters & advanced manufacturing facility JOBS: 621 INVESTMENT: $30 million Source: KABA
Welcome to Wisconsin!
www.bh-hm.com 262-546-7700 Experienced Team Best Materials Quality Partners
24 / BizTimes BUSINESS RELOCATION GUIDE · 2018
M I LWAU K E E CO U NT Y KEY CITIES AND VILLAGES (POPULATION):
$ $ $
POPUL ATION: 957,735
MILWAUKEE
600,155
UNEMPLOYMENT RATE: 3.4%
WEST ALLIS
60,620
L ABOR FORCE: 479,090
WAUWATOSA
47,614
GREENFIELD
37,349
PER CAPITA INCOME: $43,020
FRANKLIN
MEDIAN HOUSEHOLD INCOME: $45,859 Source: M7
OAK CREEK
36,222 35,243
MA JOR PRIVATE SEC TOR EMPLOYERS:
Source: M7
Company
Product or service
Employment range
Aurora Health Care Inc.
Health care services
1,000+
Froedtert & the Medical College of Wisconsin
Medical center and college
1,000+
Northwestern Mutual Life Insurance Co.
Life insurance carrier
1,000+
Children’s Health System
Health care services
1,000+
Columbia St. Mary’s
Health care services
1,000+
Marquette University Higher education 1,000+ Johnson Controls International plc
Building systems and auto batteries
1,000+
WEC Energy Group Inc.
Electric and gas utility
1,000+
FIS Data processing services 1,000+ Source: M7 biztimes.com/brg / 25
n business climate
H O M E P R I CE S AR E WH E R E YO U R E ALLY S E E TH E D I F F E R E N CE By Corrinne Hess, staff writer
26 / BizTimes BUSINESS RELOCATION GUIDE · 2018
HOME PRICES are one of the biggest disparities between living in the Chicagoland area and southeastern Wisconsin. Chicago housing costs are about 30 percent higher than Milwaukee-area housing costs, said Jim Paetsch, vice president of corporate relocation, expansion and attraction for Milwaukee 7, a regional economic partnership group. “We work with executives all the time who are surprised by how much further their home-buying dollar can go here versus northeastern Illinois,” Paetsch said. A four-bedroom, two-and-a-half bath, 2,500-square-foot home in Chicago’s Lake View neighborhood would cost about $853,300. In the Arlington Heights suburb, the average price would be about $391,800, according to M7. That same home in Pleasant Prairie, in Kenosha County, would be priced at $245,200, according to M7. “Another thing we are really starting to see is property taxes are much more favorable here,” Paetsch said. “While in Illinois, taxes have creeped up, we have held the line on property taxes. So not only is the cost of buying a home more economical, annual occupancy also costs less.” The tax rate was $27.30 per $1,000 assessed value in the City of Kenosha and $20.37 per $1,000 in Pleasant Prairie in 2014-‘15, according to the latest data available from the Wisconsin Taxpayer Alliance. Metro Milwaukee-area home sales in 2017 were the highest annual total since 2005. For the year, the market saw 21,357 total sales, compared to 21,007 in 2016, a 1.7 percent increase. And 2017 was 8.9 percent ahead of 2015, when there were 19,611 homes sold, according to the Greater Milwaukee Association of Realtors.
A four-bedroom, two-and-a-half bath, 2,500-sq.-ft. home in Chicago’s Lake View neighborhood would cost about $853,300... That same home in Pleasant Prairie, in Kenosha County, would be priced at $245,200. — Jim Paetsch, M7
The average home sale price in Kenosha County was $193,745 in 2017, up 7.9 percent compared to 2016, according to the Greater Milwaukee Association of Realtors. The average home sale price in Racine County in 2017 was $182,378, up 8.7 percent; the average home sale price in Milwaukee County was $176,012, up 4.6 percent; and the average home sale price in Waukesha County was $321,224, up 5.8 percent. n
YOU R COMMUTE
COMMUTING TIMES in southeastern Wisconsin are significantly lower than in the Chicago area. But many key locations in southeastern Wisconsin are also within a reasonably short drive of important destinations in the Chicago area. The Chicago area has the third-longest average travel time to work in the nation at 33.3 minutes, while the Milwaukee area’s average travel to work time is 22 minutes, according to U.S. Census data com piled by IndexMundi. Here are some samples of travel times between key spots in southeastern Wisconsin and the Chicago area:
CO M M UTE TI M E S
LAKEVIEW CORPORATE PARK, PLEASANT PRAIRIE
I-94 AT WI-20, RACINE COUNTY
DOWNTOWN MILWAUKEE
GENERAL MITCHELL INTERNATIONAL AIRPORT
O’HARE INTERNATIONAL AIRPORT
THE LOOP, DOWNTOWN CHICAGO
LAKE COOK ROAD AT I-94
37 MINUTES (38 MILES)
29 MINUTES (31 MILES)
41 MINUTES (44 MILES)
1 HOUR, 14 MINUTES (58 MILES)
36 MINUTES (35 MILES)
24 MINUTES (24 MILES)
16 MINUTES (17 MILES)
49 MINUTES (55 MILES)
1 HOUR, 22 MINUTES (69 MILES)
36 MINUTES (41 MILES)
42 MINUTES (25 MILES)
32 MINUTES (23 MILES)
1 HOUR, 6 MINUTES (63 MILES)
1 HOUR, 20 MINUTES (77 MILES)
53 MINUTES (50 MILES)
35 MINUTES (35 MILES)
27 MINUTES (28 MILES)
41 MINUTES (44 MILES)
1 HOUR, 15 MINUTES (58 MILES)
37 MINUTES (35 MILES)
N/A
17 MINUTES (10 MILES)
1 HOUR 20 MINUTES (79 MILES)
2 HOURS, 12 MINUTES (92 MILES)
1 HOUR, 7 MINUTES (66 MILES)
DOWNTOWN RACINE
I-94 AT WI-50, KENOSHA COUNTY
DOWNTOWN MILWAUKEE
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n things to do
LIVI N G I N The Milwaukee Art Museum.
SO UTH E A STE R N WI SCO N S I N By Molly Dill, staff writer
SOUTHEASTERN WISCONSIN has a rich quality of life and many of the same amenities that can be found in larger cities like Chicago. Yes, Milwaukee has a symphony, a ballet, two operas, Major League Baseball and an NBA team. From James Beard-winning chefs to oneof-a-kind museums, the city of festivals is sure to impress.
RECOMMENDED EATS If you’re seeking award-winning eats, look no further than Milwaukee’s restaurant scene. There are more than 150 restaurants just in downtown Milwaukee, 75 percent of which are locally-owned. And there are 11 James Beard Award-nominated chefs in town, three of whom have won: Sandy D’Amato and Justin Aprahamian of Sanford on Milwaukee’s East Side, and Adam Siegel of Lake Park Bistro on the Upper East Side. “Milwaukee is very famous for its restaurant-supported agriculture program; that is due in no small part to Chef Dave Swanson at Braise,” said Kristin Settle, director of communications at VISIT Milwaukee. The supper club is a proud Wisconsin tradition,
The Corners of Brookfield.
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and you’ll find several are destination dining. The Hob Nob, located between Racine and Kenosha, a perfect example, has been serving up prime rib, Friday fish fry and brandy Old Fashioned, overlooking Lake Michigan since 1954. And while you’re tasting around town, you may want to check out Milwaukee’s famed breweries. Tour the MillerCoors brewery in the Miller Valley, or check out one of many microbreweries, like Lakefront Brewery in Brewers Hill, Milwaukee Brewing Co. in Walker’s Point or Sprecher Brewing Co., which also makes its own sodas, in Glendale. “Every town in America can say that they have a craft brewing scene and Milwaukee’s is ex-
tremely strong, but we’re the only ones who own the history, too,” Settle said. Milwaukee also makes its own spirits at two distilleries: Central Standard Craft Distillery and Great Lakes Distillery, both in Walker’s Point.
CULTURAL ATTRACTIONS There are 17 museums in Milwaukee County, including the world’s only museum dedicated to Harley-Davidson motorcycles and the only museum on the planet that actually moves three times a day—the Milwaukee Art Museum, with its Burke Brise Soleil, a moveable, wing-like sunscreen that has a wingspan comparable to that of a Boeing 747. There’s a children’s museum, a natural history museum and a science museum with an aquarium.
“Milwaukee is very famous for it’s restaurant-supported
Discovery World is a science museum and aquarium.
agricultural program.” — Kristin Settle, director of communications VISIT Milwaukee
“Those are just incredible icons that are recognized the world over and we’re really fortunate to have them here,” Settle said. Kenosha has a public museum, a Civil War museum and a dinosaur museum. Racine has an art museum. Milwaukee County also has 25 theaters, which host everything from Broadway smash hit Hamilton (coming next season at the Marcus Center) to original ballets choreographed by Michael Pink at the Milwaukee Ballet. The Milwaukee Symphony Orchestra is currently raising funds to buy and renovate a historic downtown movie theater for its new performance space. There’s not one, but two operas, as well as several dance companies and theater groups, including a children’s theater. Take a walk in the desert or the rainforest at the Mitchell Park Domes, or see lions and tigers and bears at the Milwaukee County Zoo “We’ve got one of the best zoos in the area,” Settle said. “We’re the only zoo in like a four-hour radius to have elephants.”
Photo courtesy of VISIT Milwaukee
Summerfest is the World’s Largest Music Festival.
The Milwaukee Film Festival, celebrating its 10th year, is larger than Chicago’s film festival. “We are extremely fortunate to have all of those cultural assets for a city of our size,” Settle said.
MAJOR EVENTS Milwaukee is known as the city of festivals for a reason. It plays host to Summerfest, the
World’s Largest Music Festival, a 10-day music and food extravaganza at Henry Maier Festival Park on the lakefront. When Summerfest isn’t going on, the festival grounds play host to several ethnic festivals, from Irish Fest to Mexican Fiesta. The Wisconsin State Fair in West Allis had more than 1 million attendees in 2017.
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n things to do Photo courtesy of VISIT Milwaukee
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HA C E M
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BL A W NE
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AL Miller Park is the home of the Milwaukee Brewers.
RECREATION And there’s plenty of other festivals around the area celebrating everything from strawberries to beer. “Milwaukee is home to over 30 festivals, and those are not limited to the summer. It’s a year-round thing,” Settle said. Harley-Davidson Motor Co. is based here, so the company hosts its major anniversary bashes here every five years. See thousands of riders roar through town on hogs made right here in Cream City.
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SPORTS TEAMS
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Kenosha • Milwaukee • Wausau clarkdietz.com 30 / BizTimes BUSINESS RELOCATION GUIDE · 2018
Wisconsin takes its sports seriously, and several professional teams make their home in Milwaukee. Tailgating at a Milwaukee Brewers game at Miller Park is an experience not to be missed on a sunny summer day. Both the Milwaukee Bucks and the Marquette men’s basketball team will play in the soon-to-open new downtown arena, which will also soon have a live block full of entertainment destinations around it. Also playing downtown are the University of Wisconsin-Milwaukee men’s basketball team, the Milwaukee Wave, part of the Major Arena Soccer League, and the Milwaukee Admirals, an American Hockey League team. Just two hours north of Milwaukee is the legendary Lambeau Field, home of the Green Bay Packers. Residents are not just fans of the Packers—they own the team. And the new Titletown District surrounding the stadium offers a sledding hill and games for kids, as well as a brewery and hotel.
There are 75 golf courses within a one-hour drive of Milwaukee, some of which host major golf tournaments. Erin Hills recently held the U.S. Open, and Whistling Straits hosted the 2015 PGA Championship. The 2020 Ryder Cup will also be played at Whistling Straits. In Milwaukee County alone, there are 150 state and county parks and 130 miles of bike trails, many of them sweeping over the hills and valleys formed by glaciers thousands of years ago. “Whether you’re walking, biking, hiking, Milwaukee has it,” Settle said. If you’d prefer to take it easier and relax with a drink by the water, Milwaukee County has about 1,400 acres of beachfront access on beautiful Lake Michigan. “Chicago’s wonderful, but they’ve developed their lakefront and we haven’t. We’ve kept it protected as public space – miles and miles of public beaches. Everybody has access to our lakefront,” Settle said. If you yearn to get out on the water, there are riverboat tours or kayaking on the Milwaukee River through downtown and pontoon boats can be rented to venture out onto at least nine area lakes, many which are popular fishing destinations. Milwaukee, Racine, Kenosha, Port Washington and Sheboygan all have substantial marinas on Lake Michigan. Southeastern Wisconsin has many other great qualities to recommend it. We invite you to come see for yourself. “It’s not a challenge to sell Milwaukee to anybody,” Settle said. “Milwaukee is one of the easiest places, I think, to promote to people because of the quantity and quality of our attractions.” n
PRIVATE COLLEGES AND UNIVERSITIES
H I G H E R E D U C ATI O N I N
2,536 3,811 3,481 2,660
Alverno College, Milwaukee Cardinal Stritch University, Fox Point
SO UTH E A STE R N WI SCO N S I N
Carroll University, Waukesha Carthage College, Kenosha
8,161
Concordia University Wisconsin, Mequon
850
Lakeland University, Sheboygan County
R
CO L L E G NO
Marquette University, Milwaukee Wisconsin Lutheran College, Milwaukee
TECHNICAL AND PROFESSIONAL Columbia College of Nursing, Glendale 149 Herzing University, Milwaukee
E
11,491
1,385 1,188
Mount Mary University, Milwaukee
6,000
1,200 740
Medical College of Wisconsin, Wauwatosa Milwaukee Institute of Art & Design, Milw.
2,810
Milwaukee School of Engineering, Milw.
A LV
E
WISCONSIN HAS MORE THAN 70 higher education institutions, ranging from four-year private universities to two-year technical colleges. About 25 of those schools are located in the southeastern Wisconsin area. Here is a list of those higher education institutions, and their enrollment.
UNIVERSITY OF WISCONSIN SYSTEM 28,013
UW - Milwaukee
SCHO
4,584
UW - Whitewater
O
12,134
UNIVERSITY OF WISCONSIN TWO-YEAR COLLEGES
OF BUSINE
UWM
U
R BA
L
-L
UW - Parkside, Kenosha
UW - Sheboygan UW - Washington County
770 973
2,261
UW - Waukesha
WISCONSIN TECHNICAL COLLEGE SYSTEM Gateway Technical College, Racine
20,142
Milwaukee Area Technical College
S
Waukesha County Technical College
22,756
38,049
S
L ARGEST HEALTH CARE FACILITIES IN SOUTHEASTERN WISCONSIN: ÌÌAurora St. Luke’s Medical Center, Milwaukee ÌÌFroedtert Hospital, Wauwatosa ÌÌChildren’s Hospital of Wisconsin, Wauwatosa ÌÌWaukesha Memorial Hospital, Waukesha ÌÌWheaton Franciscan HealthcareAll Saints, Racine ÌÌColumbia St. Mary’s Hospital, Milwaukee
H E ALTH C AR E I N S E WI SCO N S I N SOUTHEASTERN WISCONSIN is home to several large integrated health care providers, including Aurora Health Care Inc., Froedtert & the Medical College of Wisconsin, Children’s Hospital of Wisconsin, Ascension Wisconsin and ProHealth Care Inc. Several of those systems have expansion plans and projects underway.
ÌÌFroedtert South Kenosha Medical Center, Kenosha Froedtert Hospital is constructing a four-floor expansion on top of its 12-story, 613,000-squarefoot Center for Advanced Care, which opened in 2015. Aurora is building a hospital, outpatient surgery center and medical office building in Kohler, expected to open in 2021. Aurora also is planning a 100,000-square-foot medical office building and a 100,000-square-foot outpatient care center west of I-94 in Pleasant Prairie. n
ÌÌAurora West Allis Medical Center, West Allis ÌÌWheaton Franciscan-St. Joseph Campus, Milwaukee ÌÌAurora Medical Center, Grafton ÌÌAurora Sinai Medical Center, Milwaukee
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LOCAL ADVANTAGE.
CBRE knows Wisconsin. Consider our market to grow your business with CBRE as your guide. Through our industry leading perspectives, scale and local connectivity, we deliver outcomes that drive business and bottom-line performance for every client we serve in southeastern Wisconsin. How can we help transform your real estate into real advantage? For more information contact or visit: Kevin Armstrong, Managing Director +1 414 274 1607
Chris Zubel, Managing Director +1 847 706 4971
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