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BEHIND THE SMILE
INSIDE THE BUSINESS OF SUMMERFEST
ALSO IN THIS ISSUE:
NEW WAUKESHA COUNTY ECONOMIC DEVELOPMENT ORGANIZATION EXPECTED TO LAUNCH IN SEPTEMBER CHANGES UNDERWAY AT ROUNDY’S STORES UNDER KROGER OWNERSHIP Don Smiley and Bob Babisch of Summerfest
KAUFMANN PARTNERING WITH SILVER CITY INCUBATOR DEVELOPMENT
Now accepting reservations for the 2017
GIVING GUIDE E A S T E R
S I N W I S C O N
E A S T S O U T H
S E A L S
all people with to ensure that , work tional services MISSION ies to live, learn provides excep east Wisconsin equal opportunit Easter Seals South needs and their families have special disabilities or s. unitie comm and play in their
Street 2222 S. 114th West Allis, WI 53227 (414) 449-4444 m
eastersealswise.co
GOALS
rsealswise
facebook.com/easte @ESSoutheastWI
YEES: 220 TOTAL EMPLO 12,379 REVENUE: $10,4 LISHED: 1934 YEAR ESTAB
SERVICE AREA east Wisconsin Easter Seals South ies: Milwaukee, serves six count ngton, Ozaukee, Waukesha, Washi e. Kenosha and Racin CES
FUNDING SOUR
.............. 62%
......................
Program Fees ............. 18% Contracts ........... .......... 9% Government Sales ...................... 7% Commercial ..................... ...................... Donations ................ 4% ...................... Other Income
LEADERSHIP EXECUTIVE
treats nes, views and way the world defi To change the achieve their full every person can es to ensure that disabilities so that e exceptional servic potential. To provid l needs and their play disabilities or specia work, with learn, people all live, opportunities to families have equal . their communities and engage in supvital services and comprehensive, egardless tial—r Live: Hands-on, poten full reach their port to help people or disabilities. of challenges, needs children and adults designed to help r skills Learn: Programs functions, maste re-learn—basic and active learn—and often thrive, and be sharp and p develo needed to age. they as related services g, placement and trainin e of ecaus Work: A range workforce—b prepare for the chalthat help people to overcoming is often the key meaningful work a good life. lenges and having and adults and en childr y programs for s and engage in Play: Fun, health connect with friend best caregivers to relax, sary to living the ies—all so neces constructive activit life possible. rters friends and suppo , t community of by volunteering Act: Our vibran face challenges who that those in events stands with ing and participating advocating, donat . sustain our cause inspire us all and OPPORTUNITIES VOLUNTEER in an essential role We volunteers play Our dedicated those that we serve. ting the lives of and hout the week positively impac opportunities throug how of have a variety interests. Learn availability and your t fi at to nd eering weeke h volunt a difference throug you can make se.com. www.eastersealswi
CTORS BOARD OF DIRE Dale Van Dam (Chair) M3 Insurance Solutions
Peggy Niemer (Vice Kenwood & Wells,
★
PNC Bank
Nancy Creuziger Robert Glowacki CEO
Michelle Schaefer COO
★
★ (Treasurer)
ManpowerGroup
Frank Windt
Schenck Business
Chair) ★
LLC
ry) Jim McMullen (Secreta
Solutions
David Glazer
Estate, David Glazer Real
Bill Hughes
Patina Solutions Associated Bank
Roger Schaus
RTUNITIES GIVING OPPO t your gifts make the personal impac to Easter Seals knows to you. There are many ways tance the Board is of great impor or leadership at nce: Volunteer sponsormake a differe days; tailored event eer volunt level; corporate or through your gifts; in-kind gifts; you ual allows individ gift st ships; Campaign. A beque ives with your United Way Giving al object personal financi . to combine your a lasting legacy goals to establish charitable giving
VE LEADERSHIP ★ DENOTES EXECUTI
ications Pierman Commun
Daniel O’CallaghanCo. Harley-Davidson Motor
Retired, Roundy’s
Sara Walker
EVENTS FUNDRAISING/ that offer oppor l fundraising events cted: We hold two annua and corporations to get conne uals tunities for individ June 29th at the – Wednesday, Me With Walk • event to walk y Zoo. A family for Milwaukee Count ness aware funds and together to raise a corporate disabilities. Be individuals with tration begins a walk team. Regis waukee sponsor or form alkwithme.org/mil in January at www.w this – April. Through Month ness • Autism Aware can align your campaign, you ting marke d the word cause Seals to help sprea business with Easter e scholarships d funds to provid and raise neede waiting list for y therap the are on to families that support services. early intervention
Sue Pierman
Robert Ranus
Jeff Squire
ProHealth Care
Tom Kelly
ion Kelmann Restorat
Tom Gagliano LLC
alsw www.easterse
Morgan Stanley
Jean Schramka Massage Envy
Tari Emerson
A SUPPL EMENT
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ise.com
Charter Steel
Retired, Generac
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A supplement of
inside
June 27 - July 10, 2016 S P E C I A L R E P O R T:
BU SINE S S IN WAU K E SH A COU NT Y 22 Coverage includes profiles of the Top 10 Businesses of the Year, an update on the new economic development organization being formed in Waukesha County and an analysis of how the reduced size of Waukesha’s water service area might impact development.
HIGHLIGHT S Made in Milwaukee
6
Centralized production brings precision for Wisconsin Vision
Biz News
10
Kaufmann partnering with Silver City incubator development
Biz News
12
Changes underway at Roundy’s stores under Kroger ownership
Innovations 13 Classmunity looks to secure school fundraising
Real Estate
14
New apartment project could spark more development in Brewers Hill
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S TR ATE GIE S
Behind the smile
BIZ CONNECTIONS
Leadership Marketing Coaching
John Howman 45 Robert Grede
Jo Gorissen
46 47
COV E R S T ORY Calendar 48 Biz Notes 48 SBA Loans 50 Commentary 52 BizTimes Around Town 53
Inside the business of Summerfest ON THE COVER: Don Smiley, president and chief executive officer and Bob Babisch, vice president of entertainment at Summerfest. — photo by Troy Freund Photography
V I S I T B I Z T I M E S . C O M F O R A D D I T I O N A L S T O R I E S , D A I LY U P D AT E S & E - N E W S L E T T E R S Editorial . . . . . . . . . . . . 414-336-7120 Advertising . . . . . . . . . 414-336-7112 Subscriptions . . . . . . . 414-277-8181 Reprints . . . . . . . . . . . . 414-277-8181
Founded in 1995, BizTimes Milwaukee provides news and operational insights for CEOs, presidents, owners and other top level executives at companies in southeastern Wisconsin (Milwaukee, Waukesha, Ozaukee, Washington, Racine, Kenosha, Walworth and Sheboygan counties). Subscription Customer Service: BizTimes Milwaukee, 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120, USA, Phone (414) 277-8181, Fax (414) 277-8191, circulation@biztimes.com, www.biztimes.com
BizTimes Milwaukee (ISSN 1095-936X & USPS # 017813) Volume 22, Number 7, June 27 - July 10, 2016. BizTimes Milwaukee is published bi-weekly, except two consecutive weeks in December (the third and fourth weeks of December) by BizTimes Media LLC at 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120, USA. Basic annual subscription rate is $42.00. Single copy price is $3.25. Back issues are $5.00 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 2016 by BizTimes Media LLC. All rights reserved.
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Byline Bank to acquire Ridgestone Bank for $105 million
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rookfield-based Ridgestone Bank is being acquired by Chicagobased Byline Bank. The transaction, valued at $105 million in cash and stock, is expected to close in late 2016, according to the Barack Ferrazzano Financial Institutions Group, which acted as legal counsel for Ridgestone. Barack Ferrazzano has offices in Chicago and Minneapolis. The deal will create a combined institution with assets of $3 billion and 69 branches across the Chicagoland area and Wisconsin. Ridgestone has one branch in Brookfield and one branch in Schaumburg, Illinois. It also has loan production offices in Kaukauna; Madison; Wausau; Indianapolis, Indiana; Hudson, Ohio;
Newport Beach, California; and Franklin, Tennessee. At the end of the first quarter, Ridgestone had $433.2 million in total assets and 165 employees, according to FDIC data. Last year, it was the top SBA lender in Wisconsin in terms of volume, approving $95.9 million for 103 loans. Nationally, Ridgestone made 475 SBA loans totaling $474.3 million last year, which ranked it seventh in SBA lending volume nationwide. Byline Bank, previously known as North Community Bank, has more than 65 branches in the Chicago metropolitan area. At the end of the first quarter, it had about $2.6 billion in assets and 743 employees, according to FDIC data. Ridgestone president and chief exec-
The Ridgestone Bank headquarters in Brookfield.
utive officer Bruce Lammers could not be reached for comment and a Ridgestone spokesperson would not provide additional information about the merger. Lindsay Corby, chief financial officer
for Byline Bank, declined to comment on the transaction when reached by phone. A spokesperson for Byline Bank could not be reached.
——Molly Dill
SOCI AL M E D I A S T R AT E GI ES
Why you should be using Facebook Live for your business In April, Facebook launched Facebook Live, a live video platform designed to help individuals and businesses engage their followers and grow their audiences in a new way. The feature lets users connect with their Facebook fans instantly and is a great platform for any business that wants to interact with its audience in real time. Brands like Nissan, Target and Dunkin’ Donuts have already started utilizing it successfully. Businesses can use Facebook Live in a variety of ways. The new platform is a unique way to showcase products, conduct tutorials and demos, answer customer questions, share breaking news or company events, interview thought leaders, give a behind-the-scenes tour, perform live and more. According to digital marketing company Syndacast, a predicted 74 percent of all Internet traffic will be video by 2017. Shoppers who view video are 1.81 times more likely to purchase than non-viewers. If your business isn’t already using video, now is the perfect time to start. 4
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Other video-sharing platforms, like YouTube, are extremely successful but the difference is that Facebook Live is a much more personal and interactive use of video. While viewing your content, viewers can comment and ask questions you can then answer live. Mentioning those who comment by name makes for a more informal and personal conversation, increasing your approachability and relatability as a business. And while platforms like Periscope have similar features, 1.6 billion people are already on Facebook, so you aren’t building your audience from scratch. Customers love to see the people behind the brand and Facebook Live is the perfect opportunity to showcase that. You can also target your Facebook Live broadcast to reach the right audience with each video, and once the broadcast ends, the video will post on your company’s Facebook page so viewers who didn’t get a
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chance to tune in can watch later. No matter what type of business you have, Facebook Live is a great resource to deepen your connection with your customers, increase brand loyalty and grow your audience.
——Amanda Bell is a social media and PR specialist at Waukeshabased branding agency z2.
leading edge COFF E E B R E A K
POLITIC AL BEAT
What was the smartest thing your company did in the past year?
that means giving up things that have made them successful in the past.”
“We moved our headquarters to our expanded and upgraded Brookfield facilities and consolidated our southeastern Wisconsin teams in that facility. This has resulted in increased team collaboration and a closer intimacy to our Milwaukee-based customers.”
Do you plan to hire any additional staff or make any significant capital investments in your company in the next year?
Wisconsin has the highway blues
“Indeed, we are doing both. We are always in a recruiting mode to attract some of the best talent in the industry to join team PDS. We are actively seeking candidates in sales; engineers and architects with subject matter expertise relevant to our three businesses – Health care, Corporate, and Government & Education; and software engineers to augment our engineering team. Our customers often look to us to help implement special projects for which our staffing organization has the ability to quickly hire staff with relevant skillsets for the duration of the projects. We have been continually making investments in our information technology infrastructure to enhance our customer relationship, business processes and sales automation.”
Gov. Scott Walker has ruled out significant increases in state-collected revenue for the state’s struggling highway and road system in the 2017-’19 state budget. Transportation secretary Mark Gottlieb said that means a delay in major road construction and upkeep on all but the state’s most-traveled roads. Last year, the U.S. Department of Transportation provided data showing Wisconsin roads were among the worst in the nation. Gottlieb said he expects the Walker administration to focus on bridges and key roads, such as the interstate highways and major arteries. The rest of the highway system – about 90 percent – “is going to continue to deteriorate in condition,” Gottlieb told the Wisconsin State Journal. In the past, Walker has favored borrowing hundreds of millions of dollars for road construction and repairs. Initially, the governor requested $1.3 billion in borrowing for the current biennium. The GOP-controlled Legislature reluctantly gave him $850 million in road-borrowing authority. Now, 20 percent of the license fee and gasoline tax revenue is directed to pay off the transportation bonds. Walker hinted he may seek additional road borrowing in the next biennium. He declined to suggest how much he might consider. Walker has said the only way he’d approve higher transportation taxes or fees would be if other state taxes were reduced.
What will be your company’s main challenges in the next year? “We have a dedicated, motivated and highly competent team that is proud to work at PDS. We had a very good 2015 where our team performed very well and bettered on just about every metric over our 2014 results. Our challenge is to continue that trend and accelerate our profitable growth, and at the same time make PDS an even more fun place to work. I know team PDS is up to that challenge.”
Do you have a business mantra?
BY MATT POMMER, special to BizTimes
“We try to stay away from slogans. However, we frequently discuss what values we strive to live What’s the hottest trend in your industry? by, and there are always two consistent themes. “Let me see if I can be succinct here. Successful The first thing that has always distinguished businesses are increasPDS is our relentless ingly recognizing that IT is focus on customer not an adjunct to their service and our firm belief strategy; it is central to it, that as long as we take and in many cases, it is care of our customers the strategy. As devices and our team members, become more sophistiall else will fall into cated, applications place. Second, we are more context sensitive, a learning organizausers bring their own tion. Most successful technologies to work organizations create a and as the needs to culture of learning ensure security and where the team privacy mount, the IT members can learn skills gaps required to from each other, from address these trends their successes and in an enterprise are failures, and from the widening. Add to it the ever-changing busiAsif Naseem increasing use of social ness environment and President and chief executive officer media, mobile devices, market dynamics that Paragon Development Systems analytics for deeper impact their business. 13400 Bishops Lane, Brookfield business insights and They reinvent themwww.pdsit.net cloud-based services, selves by addressing Industry: Information technology and the traditional IT the challenges facing Employees: More than 300 skills are no longer them and by embracFamily: Married to Deborah Farwell with adequate to support ing the opportunities in two sons, Armande (14) and Amani (12). an enterprise. front of them, even if w w w.biztimes.com
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Matt Pommer is the “dean” of Capitol correspondents in Madison. His column is published with permission from the Wisconsin Newspaper Association, but does not reflect the views or opinions of the WNA or its member newspapers.
BY TH E NU MBERS Wisconsin has 10 companies on the 2016 Fortune 500 list, up from eight in 2015. Wisconsin is
10
tied with Missouri and Tennessee with the 16th most Fortune 500 companies of the 50 states.
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leading edge ON TH E C ALEN D AR
MA DE I N M I LWA U K E E
Centralized production brings precision for Wisconsin Vision
10 11
JUL
For the team at LBC Optics, every morning starts with a daunting sight. Hundreds of frames for eyeglasses ordered at Wisconsin Vision stores are spread out on the front counter. They need to be sorted in to trays, matched with a barcode and sent into the lab for processing. Before the end of the day, orders from Illinois and Indiana will also arrive at the New Berlin facility, which processes 400 pairs of glasses each day. With shipping and centralized production at a 20,000-square-foot New Berlin facility, Wisconsin Vision and LBC are able to turn around a pair of glasses in an average of three days. While it isn’t the one-hour timeframe some larger national competitors offer, the approach does have its advantages.
3 4
ABOVE: The lens starts out resembling a hockey puck, but is quickly cut down in size as the prescription is added. BELOW: LBC Optics employee Adam Gulrud puts lenses in a vacuum chamber used to apply an anti-reflective coating.
ARTHUR THOMAS (414) 336-7123 | Twitter: @arthur8823 arthur.thomas@biztimes.com
“To place all that lens inventory in every location, and then to have the equipment and the staffing at every location, is very expensive,” said Darren Horndasch, president and chief executive officer of Wisconsin Vision. “We’ve centralized it here to create economies of scale and still have a three-day turnaround time.” Fabricating each lens from raw material to a finished product also allows for greater precision, a particularly important feature for the 70 percent of the market that wears multifocal lenses. “What that means is they have to buy a huge inventory to cover all those prescriptions, whereas we can take one piece of plastic and make all those prescriptions,” said Andy George, president of LBC Optics, which was founded in 1988 and operates as a subsidiary of Wisconsin Vision Inc. George and his brother Paul started Wisconsin Vision in 1978 and both are still owners of the company, which has 225 employees in three states. There are 23 stores in Wisconsin operating under the Wisconsin Vision brand and six stores in Indiana that do business as Heartland Vision. A separate ownership group that includes Wisconsin Vision owns eight Eye Boutique stores in Illinois. The company uses a courier for Wisconsin locations and overnights Illinois and Indiana orders through UPS. At the start of the manufacturing process, the orders are sorted and frames are traced and measured to within a hundredth of a millimeter. A diamond-tipped cutter is used to cut the prescription into the plastic lens and aluminum oxide gives a quick polish. The logo of the lens designer is etched in and standard coating is applied. From there, a lens could be cut to fit the frame, but many are sent for an additional anti-reflective coating. The second coating slows the process, taking about an hour and 15 minutes per 20 pairs. The lenses are put in a vacuum chamber and quartz glass is vaporized using a localized heat source that reaches 5000 degrees Fahrenheit. When the vapor is released, it clings to the first thing it touches, whether that is the lenses or metal in the chamber. Not only is the process time intensive, it also requires a lot of maintenance. All the metal pieces in the chamber have to be removed every other day and sand blasted to clean them. LBC is investing in adding a second chamber, increasing
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Wheels and Heels Run, Walk, Roll The National Spinal Cord Injury Association of SE Wisconsin will host the 29th annual Wheels and Heels Run, Walk, Roll on Friday, July 22, at 6:55 p.m. at Veterans Park, 1750 N. Lincoln Memorial Drive in Milwaukee. The 5K Run or Roll / 1K Fun Walk raises money to help individuals with spinal cord injuries and disabilities to thrive and to support paralysis research. Cost is $20 for individuals, $80 for families and $150 for teams before June 30. For more information or to register, visit www.wheelsandheels.org.
For a complete listing of all area events, visit the event section of our website.
www.biztimes.com/events
BOOK REVIEW
Wisconsin Vision Inc./LBC Optics 16800 W. Cleveland Ave., New Berlin Industry: Eyeglasses Employees: Wisconsin Vision–225; LBC Optics–25 www.wisconsinvision.com; lbcoptics.com its capacity for applying anti-reflective coatings. After a quick wash and inspection, the lenses are sent to be cut to fit the frames. They’re then installed and inspected one final time before being sorted for shipping back to the appropriate store. The process includes some automation, but George said it is nowhere near the level of automation at large labs owned by Walmart. “I’ve never automated and reduced employment,” George said. “We’ve always automated to increase productivity.” George has been able to steadily increase employment in recent years as demand has increased and now has 25 employees at the facility. “I’m just keeping up,” he said. Even with hundreds of lenses moving through the lab on a daily basis, George said mistakes and mix-ups are fairly rare. LBC targets a remake rate of around 7 or 8 percent, while LensCrafters aims for 15 percent, he said. “You’d be surprised how low it is,” he said. Get the latest manufacturing news delivered to your inbox every Monday. Sign up for BizTimes’ Manufacturing Weekly at biztimes.com/subscribe.
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Eccentric Orbits: The Iridium Story In the early 1990s, Motorola developed a revolutionary satellite system called Iridium that was light years ahead of anything previously put into space. While the technology was the future of communication, the Iridium company was a disaster, putting Motorola $11 billion in debt and costing $100 million a month to operate. Dan Colussy, the retired head of Pan-Am, heard about Motorola’s plans to de-orbit the system and decided to buy Iridium and turn around the business. In “Eccentric Orbits,” author John Bloom traces the conception, development and launching of Iridium and Colussy’ s efforts to stop it from being destroyed, from his meetings with investors to his trips to the White House and the Pentagon. Eccentric Orbits is available at 800ceoread.com for $22.
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——Corrinne Hess
leading edge NON P RO F IT N E W S
THE GOOD LIFE
4,000 cyclists take UPAF Ride for the Arts About 4,000 cyclists rode through Milwaukee on June 5 during the United Performing Arts Fund’s annual Ride for the Arts, the orCyclists ride south across the Hoan Bridge ganization’s signature during the 2016 UPAF Ride for the Arts. fundraising event. Riders traversed the Hoan Bridge and took in views of Lake Michigan along Lincoln Memorial Drive on 10-, 25-, 45and 70-mile bike routes to raise money for UPAF’s member groups, such as First Stage, the Florentine Opera Co. and Skylight Music Theatre. The group’s target fundraising goal for the event was $600,000. UPAF spokesperson David Fantle said all the pledges from the ride haven’t yet been counted, but he expects the organization will meet its goal. The Ride for the Arts is part of UPAF’s 2016 fundraising campaign, which was launched in March and raised $12.16 million for local performing arts nonprofits. The group’s 2015 campaign raised $12 million.
——Ben Stanley
Relaxing after work with Total Control Most of them have high-powered jobs at Johnson Controls Inc., but when they practice in Matt O’Rourke’s basement, all they’re concerned about is high-powered pop. O’Rourke, vice president of planning and development for Power Solutions at Johnson Controls, wrangled together a five-man band this winter called “Total Control Band” with the help of friend and co-worker Grady Crosby, vice president of public affairs and chief diversity officer. The band is made up of four Johnson Controls employees and the husband of a co-worker. Together, the five will play a show at Summerfest on June 30th at the Johnson Controls World Sound Stage. “I’m a guitar nut from way back,” O’Rourke said. “I wanted a Johnson Controls band because I thought that would be a great thing for our company, too, to have something for folks to rally around at different events and all that. The hardest thing to find in a band is a drummer and a singer. Without a good drummer and a good singer, the band is never going to be good.” O’Rourke found a singer in Crosby, whom he heard sing one day during a skit put on by employees during a strategy planning session. Jesus Nañez, the spouse of a co-worker, joined the band as the drummer. Nañez is no stranger to
Total Control Band play sbefore co-workers to launch a company giving campaign. the stage— he played at Coachella and President Barack Obama’s second inauguration with the band Vic and Gab. Two other co-workers, Craig Rigby, advanced market & technology strategist for Johnson Controls Power Solutions and Samuel Kaswan, executive director of integrated talent management for Johnson Controls Power Solutions, also joined up. “We play everything,” Crosby said. “I like to consider us a sing-along band. We play everything that has been a top hit: from Santana to Bruno Mars and everything in between. If it’s a song that will make you tap your foot and sing along, it’s a candidate for our playlist.”
——Ben Stanley
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leading edge O N T HE M ON E Y
BR EA K ING GR OUN D
The active versus passive fund debate
HARLEY HQ IMPROVEMENTS
Passively managed investments that seek to mirror a market index and their actively managed counterparts each have their own merits. Investors should use active or passive funds where each has the best chance for success. Certain market conditions can favor one over the other. Actively managed funds tend to perform better in down to flat markets, while passively managed funds can do better in up trending markets when it is hard to beat the benchmark. Active funds also tend to do well in less efficient asset classes like small- and mid-cap stocks. For example, in the whitepaper “Active vs. Passive Money Management” from Baird’s asset manager research team, we found the median smallcap value fund outperformed its benchmark 67 percent of the time, while the large-cap core fund outperformed only 20 percent of the time. There is a significant difference between average and above average active managers, but it takes due diligence and time to identify top managers. The success and excess return potential of top quartile versus bottom quartile funds makes an investment in due diligence worthwhile. Passive investments can round out a portfolio’s asset allocation. For more efficient markets like large-cap core, passive S&P 500 index funds make sense, especially for those who want to get close to the market return. These funds also generally have lower fees. However, passive approaches do not work as well for certain asset classes like fixed income, where it is often more difficult to replicate a benchmark. To determine which is best for your situation, there are several considerations:
Harley-Davidson Inc. will demolish the former Kohl’s grocery store near North 35th Street and Juneau Avenue as part of a plan that will improve its corporate headquarters while also adding parking. The Milwaukee-based motorcycle maker currently uses the building for storage, but the plan is to tear it down, along with the wall around it, and then combine it with a parking lot to the west. The goal is to have the building down by the end of June and the project completed by September.
——Corrinne Hess »» Time horizon – For shorter timeframes, passive may fit your situation; if three to five years or longer, active may be more appropriate. »» Fees – Passive elections typically have lower fees. An advisor who knows your personal situation can help determine whether paying higher fees for an active manager is right for you. »» Taxes – Passive funds often have lower turnover, generating fewer capital gains. Keep in mind that good managers can capture excess returns by trading securities.
——Kathy Blake Carey, CFA, is director of asset manager research for Robert W. Baird & Co.’s Private Wealth Management business.
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Re: Fostering startup activity “Healthy entrepreneurial communities exist in places where there’s a mix of talent, financial capital, early customers, support services, public policies that promote company creation and a culture that tolerates risk and failure while rewarding innovation, networking and wealth creation.” — Tom Still, Wisconsin Technology Council
Re: MU athletics center “My guess is that the new center, which will cover four blocks of under-utilized space, will have at least as much of a positive impact, if not a greater impact, on the regional economy as the new arena for the Milwaukee Bucks.” — John Torinus, Serigraph Inc.
Donald Trump Hillary Clinton
Re: Sales “Make certain that your customer feels totally at ease about all elements of purchase and operation, including the equipment and the operation of your business. Put him or her at ease, but also ask for the sale.”
National Business Furniture recently opened its new 12,000-square-foot West Allis showroom to the public. President Kent Anderson poses in the space.
Now that the major party candidates are set, who will get your vote for president?
— Jeffrey Gitomer
4 2.6% 36.2%
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biz news Kaufmann partnering with Silver City incubator development National Avenue building to offer co-working space
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ilwaukee developer Juli Kaufmann is partnering with a local entrepreneur to renovate a 100-year-old building in the city’s Silver City district into incubator space for professionals working in the neighborhood. Tim Syth, Kaufmann’s partner on the project and head of community development consulting firm LushProduction, purchased the 3,200-square-foot building at 3524 W. National Ave. in late May. Under Kaufmann’s mentorship, Syth is developing 5 Wise Workshop Development at the property. A membershipbased co-working space serving entrepreneurs and artists will be located on
the first floor, while the second floor will remain as two residential units. Syth moved to Milwaukee from Madison in 2012, after spending time studying in Berlin, Germany. After working as the director of Bucketworks, Syth now serves as a consultant and is hoping to try his hand at commercial development. Syth spent about three years looking for the perfect redevelopment opportunity in Silver City and after finding one, he turned to Kaufmann for her expertise. As president of Fix Development LLC, Kaufmann was one of the first developers to see the potential for revitalization in Milwaukee’s Walker’s Point neighbor-
BY CORRINNE HESS, staff writer
hood. Her projects there included the Clock Shadow Building and the Freshwater Fix building, home of Purple Door Ice Cream. She has recently Kaufmann shifted her focus to the Lindsay Heights neighborhood on the city’s northwest side. “I’m really interested in places where my traditional (real estate development) peers aren’t looking. The problem is I’m not from there, so I look for co-developers in those spaces with ideas who lack
what I have, which is the development skill,” Kaufmann said. She said if a unique catalytic project comes her way, she will pursue it. Otherwise, she prefers to partner with less experienced developers in neighborhoods that aren’t traditionally being redeveloped. “When you live in your neighborhood and invest in your assets, it has a fundamentally different impact on how you care for it,” Kaufmann said. Once the $180,000 project is complete in September, Kaufmann will walk away and 5 Wise will be Syth’s development. Syth, who lives at Sixth Street and National Avenue, had originally planned on
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moving to the second floor of the building but said the long-time residents wanted to stay put, which he was more than happy to accommodate. The building was built in 1916 and originally housed a jeweler. For the past 33 years, it has played host to Engine Blade and Prop, an outboard motor and propeller repair business. As 5 Wise, Syth is envisioning the building as a place where five to 10 people can gather to work. The space will offer fast Internet, meeting rooms and eventually corporate consulting. Syth would also like to host evening events, such as spoken word artists. “There is a whole group of professionals and middle income workers who do not have a place to go,” Syth said. “For example, we are actively courting general contractors who could go to the library, but they can’t bring a client to meet there. This would give them a professional business environment with fast Internet and a meeting space.”
This 100-year-old building in Silver City is being redeveloped into incubator space by a local entrepreneur.
Kaufmann believes Syth’s model will create momentum for the Sliver City area. “Traditionally, a lot of disinvested or lower income neighborhoods tend
to see nonprofit development emerge, which sometimes moves into economic development,” Kaufmann said. “Tim is a privately-owned, tax-paying entity and he
is going to incubate other businesses that will be churning back into the neighborhood. It’s really growing the private sector from within.” n
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ABOVE: Metro Market stores may see some changes this summer. LEFT: Kroger is consolidating the Roundy’s brands under the Pick ’n Save and Metro Market banners.
Changes underway at Roundy’s stores under Kroger ownership Pricing, products and aesthetics being adjusted
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s the dust settles on the $866 million December acquisition of Milwaukee-based grocery store operator Roundy’s Inc. by Cincinnati-based supermarket behemoth The Kroger Co., some changes are expected this year at Wisconsin Pick ’n Save and Metro Market stores. Chief among them are what the stores look like and which products they carry, at what prices. “Usually Kroger, after they acquire a store, they integrate their own product in the store; they try to sync their frequent shopper card up with those stores,” said grocery industry analyst David Livingston. Among the changes coming down the pike this year are store remodels, as well as pricing and product shifts, said James Hyland, vice president of corporate communications and public affairs at Roundy’s Supermarkets Inc., which now operates as a subsidiary of Kroger. “There’s obviously going to be changes in product that people will see and there will be pricing changes and there may be some changes to the store,” Hyland said. 12
“We have committed to increase our capital spending throughout all of our Wisconsin banners. While we don’t publicly disclose our spending plans, over time our customers will notice changes in merchandising, pricing and store aesthetics.” The larger scale that Kroger brings should benefit customers, Livingston said. “It’s going to work out pretty good for the customer because it will give them a little more access to some better deals,” he said. But for employees, the integration may not be as favorable. There are just more than 500 employees at the Roundy’s corporate headquarters in Milwaukee. The company has a total of 23,000 employees, 13,000 of whom are in Wisconsin, Hyland said. He wouldn’t answer questions about any employment changes occurring at the corporate offices in Milwaukee. “You’re asking strategic questions and we don’t reveal strategy to the media,” Hyland said. “If I’m Hy-Vee or Festival (Foods) or somebody else, I would love B i zT i m e s M i l w a u k e e
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to know what Roundy’s is doing. Like any other industry, those are things we keep close to the vest and we have to do that for competitive reasons.” “The whole point of acquisitions is to eliminate redundancies,” Livingston said. “A lot of those (corporate) functions are already being done in Cincinnati and Roundy’s has a lot of good people, so it wouldn’t surprise me if they made some offers to people to move to Cincinnati.” But the name on the outside of the store is not likely to change, at least in the Milwaukee area, Livingston said. Kroger is narrowing its Wisconsin banners to Pick ’n Save and Metro Market, and this summer is renaming the Copps stores in the Fox Valley to Pick ’n Save. A Roundy’s manager who declined to be named said the pricing department has been told to cut prices in half on some Roundy’s brand and national brand products to make room for Kroger brand products. Pick ’n Save and Metro Market stores currently carry Roundy’s brand products, which are made by
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about 275 employees at the Roundy’s commissary in Kenosha. Hyland said there may be some product changes, but the 120,000-square-foot commissary will remain in operation. It supplies fresh and prepared food to 150 stores in Wisconsin and Illinois. Prices are likely to be lowered across the store network to compete with Meijer and Walmart, Livingston said. “I could see prices being lowered around 4 percent,” he said. Roundy’s will likely also improve its pharmacy program, harnessing the service to drive up to 10 percent of sales, Livingston said. But at the same time, methodical store closures are on the horizon over the next several years, he predicted. While Roundy’s may lose market share this way, its sales per square foot will improve. “I think they’re going to close probably up to 20 percent (of the Roundy’s stores),” Livingston said. “They’re just too close to the other stores. It just wouldn’t make sense to keep them open.” n
innovations Classmunity looks to secure school fundraising Service offers more than classroom crowdfunding
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hen Alana Platt and her colleagues began building Classmunity, they thought it would be something like Kickstarter for the K-12 education setting. What they ended up developing was a software as a service product that aims to remake how school districts, administrators and teachers handle fundraising. “Fundraising, over the last few decades, hasn’t changed very much,” Platt said, noting that fact is particularly true in education. The crowdfunding portion accounts for about a ARTHUR THOMAS (414) 336-7123 arthur.thomas@biztimes.com Twitter: @arthur8823
quarter of the Whitefish Bay startup, which was a finalist in the 2016 Governor’s Business Plan Contest. The rest of the webbased service involves a district-specific fundraising website. Teachers or others can quickly set up a campaign that administrators approve before it goes live. Parents, students and the community are then able to share and promote the campaign, while administrators are able to monitor progress and see to which accounts money is going. Platt said she isn’t aware of another service that allows administrators the ability to track fundraisers that closely. The ability to streamline approvals is also important, she said, noting the processes districts use run from paper forms to verbal signoffs to nothing at all. “It’s very scattered,” she said. The ability to offer oversight and security helps districts counteract the potential for fraud. A former Janesville high school employee pleaded guilty in May to embezzling more than $300,000 from the school over roughly a decade. There was a similar-sized case in Shorewood in 2014 and parents and staff have been prosecuted for lesser amounts throughout the area. Platt said cases like those are “just the tip of the iceberg.” “It’s really very prevalent,” she said.
For Elkhorn School District superintendent Jason Tadlock, the ability to provide security for the district, donor and teacher or staff member was the attractive part of Classmunity. His district was the first client for the company and he now also consults with Classmunity on financial issues. He said nearly all educators have the best intentions, but crowdfunding sites that aren’t run through the district can put them in awkward positons. As an example, he said a teacher raising money to buy an iPad for a classroom creates ambiguity about who actually owns the device. Tadlock added that being able to track ongoing fundraisers gives administrators the ability to demonstrate to the public they have good control over the finances of fundraising. “There’s so much potential fraud or lost revenue in that area,” he said, noting it makes him feel better about donating. “I feel much more comfortable about contributing to something that’s run and operated by the school district.” Classmunity launched its service four months ago and already has four districts onboard. There are plans for an app to make fundraisers easier at sporting events and in other live situations. The company also is exploring the potential for advertising, hoping that local businesses inundated by requests will see a better return on investment by displaying their support on the district fundraising pages. Revenue for Classmunity currently comes from a five-tiered pricing model that runs from a basic subscription at $99 per month to the unlimited plan at $499 per month. The tiers differ in the amount of support, the number of accounts, the cost for a credit card reader and the online fundraising campaign fee. Those fees range from 6 percent down to 0 percent, not including credit card fees. Tadlock said each district will need to consider which pricing plan fits best. He said the other crowdfunding sites take a w w w.biztimes.com
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Classmunity Whitefish Bay Innovation: Secure school fundraising www.classmunity.com
percentage as well, but Classmunity offers more robust support and the ability to remove the fee. For Platt, an assistant professor in computer science at the University of Wisconsin-Whitewater, and her team, building the service wasn’t the challenge. Classmunity does some of its work out
This screenshot shows one of the campaigns created by the Elkhorn School District.
of the Whitewater Innovation Center and was able to produce a working prototype for $1,000 and sweat equity. The challenges are going to be continuing to build and finding additional customers. “The name of the game is scaling at this point,” she said. n
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Apartment project could spark more development in Brewers Hill
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n May 20, Kevin Newell, president of Glendale-based Royal Capital Group LLC, hosted a cookout for about 50 people in Milwaukee’s Brewers Hill neighborhood. Newell, 31, is proposing one of the largest developments Brewers Hill, one of the city’s oldest neighborhoods, has seen in quite a while, and he wanted to make sure the neighbors had a chance to see renderings before they were revealed publicly the following week. “These parcels were set up for condos in 2004, but the market started showing itself and the plan was tabled,” Newell said. “The owner put the land CORRINNE HESS P: (414) 336-7116 E: corri.hess@biztimes.com Twitter: @CorriHess
on the market in 2011, a couple of groups looked at it, and we were able to slip in last summer. Some folks are excited; (but) others would rather have it be a $2 million dog park.” The $32 million development, to be 14
called The Hills Luxury Commons, includes a 97-unit, four-story building with a restaurant/cafe on the street level at the southwest corner of North Hubbard Street and East Reservoir Avenue. Two other buildings totaling 84 apartments will also be developed at the southwest corner of North Hubbard and East Brown streets. Newell is buying the land from Paul Marks, principal at Chicago-based Brewers Hill Commons II LLC, who spent the early 2000s developing a portion of Brewers Hill under the company name Tandem Development LLC. Between 2000 and 2005, Marks and former partner Paul Dincin developed a two-building condominium complex on the north side of Reservoir Avenue between Palmer Street and Killian Place that included a 56-unit building called Cobblers Lofts and a 64-unit building called Shoeworks Lofts. The buildings were formerly owned by Milwaukee shoemaker Weyco Group. Tandem Development also built about a dozen single family homes on property purchased from the city along Brown B i zT i m e s M i l w a u k e e
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Street in Brewers Hill. By 2010, the condominium market in Milwaukee was saturated and the economy was in recession, so Marks pulled out of Milwaukee. “Our primary focus is selling condos to first-time home buyers and we didn’t want to change that,” Marks said. “So we sought out a developer to purchase our land with a different plan. I think Royal Capital has a great business plan for the neighborhood.” Newell, who has led several developments in Madison, was attracted to Brewers Hill because of the diversity, which he believes rivals any multicultural environment in the country. “It’s not only different races and cultures, but you’ve got doctors and lawyers and folks who work in food service living side by side,” Newell said. “It adds a different level of quality that most neighborhoods can’t offer.” The Department of City Development and the Historic Brewers Hill Association have endorsed Newell’s plan. The project is currently working its way through the Common Council committees. It re-
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ceived preliminary Plan Commission approval on June 13. Bounded by Pleasant Street to the south, North Avenue to the north, King Drive to the West and Holton and Hubbard streets to the east, Brewers Hill is a diverse pocket neighborhood nestled between Haymarket and the East Side. Located within walking distance of downtown Milwaukee and on the bluffs overlooking the Milwaukee River valley, Brewers Hill received a lot of attention in the late 1990s but then development there slowed down as developers looked to other areas of the city, including the Historic Third Ward and Walker’s Point. Molly Booth, secretary at the Historic Brewers Hill Association, said it is refreshing to see renewed interest in development of the neighborhood. Yet even without the new development interest, Brewers Hill has continually attracted people seeking an urban lifestyle, historic homes and a diverse community. “The neighborhood doesn’t necessarily need to evolve, but there are one or two larger tracts of vacant buildings and land that need to be redeveloped,” Booth said,
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A rendering of The Hills Luxury Commons. Wolf Peach restaurant in Brewers Hill. A historic home in Brewers Hill. A Brewers Hill sign. The Gateway Signage Project was established in 2011 at key intersections throughout the neighborhood.
adding the association wants to be sure any new development is cohesive with the existing single-family and two-family residential properties. Rocky Marcoux, commissioner for the Department of City Development, said one of the issues with Brewers Hill over the past 20 years has been the historic homes became too expensive to maintain for some of the longtime residents of the neighborhood. “You look at Brewers Hill and call it gentrification, but you look at the Third Ward and call it improvement,” Marcoux said. “The big difference is, the Third Ward didn’t have a lot of people living there originally who were impacted.” After seeing how people were affected in Brewers Hill, Marcoux said the city and Alderwoman Milele Coggs are being careful with their Bronzeville initiative to make sure not to send a message—either verbally or with the projects they choose to support—that they are trying to move poor people out of Bronzeville. “We want to mix the income of that neighborhood, but we also want the people in Bronzeville to stay as long as they want and to prosper there,” Marcoux said. As far as Brewers Hill, Marcoux believes this is the time for the neighborhood to flourish. “With the Beerline (development along Commerce Street) almost complete and everything going on in the Park East, you see the movement going north and this is a good thing,” he said. “This is going to help (the) Harambee (neighborhood) and add a lot of interest to Bronzeville.” Booth, too, hopes development momentum from the Milwaukee Bucks arena project in the Park East corridor will
spread north to the surrounding residential neighborhoods and King Drive. “King Drive has an amazing building stock and a tremendous amount of potential,” Booth said. Juli Kaufmann, founder of Fix Development LLC, bought her first house in Brewers Hill in 1995 and lived in the neighborhood before moving to Walker’s Point in 2005, where she focused a lot of her commercial development efforts in that neighborhood, which at the time was just beginning its own resurgence. Kaufmann said Brewers Hill has struggled with attracting services because there hasn’t been critical mass living in the area. “It never quite turned the way you might expect some east side neighborhoods to turn,” she said. “It always had beer barons and workers living side by side, but what held it back is that is the near north side, so it doesn’t appeal to some people, suburbanites and young professionals who come from upper incomes and didn’t always want to integrate into Milwaukee’s mixed income neighborhoods.” Developments like the one being proposed by Newell will create more density, which in turn could help King Drive, which has historically struggled economically to become a thriving main street, Kaufmann said. “Hopefully there will finally be enough nearby residents to support that street,” Kaufmann said. “That would be transformative for Milwaukee.” n Get the latest southeastern Wisconsin commercial real estate news delivered to your inbox each Wednesday. Sign up for BizTimes’ Real Estate Weekly at biztimes.com/subscribe. w w w.biztimes.com
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cover story
BEHIND
THE SMILE INSIDE THE
BUSINESS
OF SUMMERFEST
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BY BEN STANLEY, staff writer
or 11 days in June and July, Henry Maier Festival Park is the beating heart of Milwaukee.
Nestled between the Hoan Bridge and Lake Michigan on the eastern edge of the Historic Third Ward, Summerfest’s 11 permanent stages are sponsored by some of the city’s largest employers and most recognizable brands—Harley-Davidson Motor Co., Briggs & Stratton Corp., MillerCoors LLC, The Marcus Corp., BMO Harris Bank N.A., Johnson Controls Inc. Its dozens of food and beverage stands are packed with local restaurateurs and beer makers. Everything from lights and sound equipment to menus and banners is made or installed by a network of local businesses—large and small—that rely on the festival city’s main event for a sizable mid-summer payday. For 49 years, Summerfest has been a magnet for artists and entrepreneurs. Hundreds of acts have flocked to Milwaukee’s lakefront in convoys of trucks and tour buses at the end of each June since 1968 for a stretch of gigs that attracts hundreds of thousands of fans and generates hundreds of millions of dollars in annual tourism revenue. Summerfest has held the title of the world’s largest music festival since 1999. Its annual attendance far exceeds the Green Bay Packers’ eight games at Lambeau Field and its daily crowds dwarf the seating capacities of the BMO Harris Bradley Center and Miller Park.
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cover story A
B
C
D
E
F
A: Walk The Moon plays at Summerfest. B: Up to 85,000 people attend the festival each year. C: Local H performs. D: Timeflies sings to the crowd. E: The Marcus Amphitheater can seat 23,000. F: The crowd at Rise Against.
But behind the stages, the flashing lights and the enormous crowds, what is perhaps one of the most impressive shows the city has ever hosted is playing out year-round in the Summerfest offices. In a quiet corner of the Historic Third Ward, the 45 full-time employees of Milwaukee World Festival Inc.—the nonprofit that runs Summerfest—sign bands, secure vendors, negotiate sponsorship deals and manage logistics with the skill and creativity of a jazz ensemble. “This is a mega-event, just like the Kentucky Derby or the Indianapolis 500 or the Daytona 500,” said Don Smiley, president and chief executive officer of Milwaukee World Festival. “There’s ticketing issues, there’s parking matters, there’s food and beverage issues, entertainment, sales, marketing, lost and found, anything you can think of, and that’s all behind the 18
fact that almost 850,000 people are showing up to visit over an 11-day stretch.” Adding to the Big Gig’s planning and coordination challenges are market forces that have dramatically SMILEY changed the music industry. Bands and performers now rely more heavily on touring and festivals for revenue as record sales fall and it becomes increasingly convenient for consumers to purchase songs one at a time or stream them online. It’s a trend Summerfest’s leaders see as a double-edged sword—the concert and music festival industry is booming, but as more and more events spring up around the world each year to cash in, signing the B i zT i m e s M i l w a u k e e
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best acts becomes an increasingly competitive process. So how does Summerfest, one of the city’s most complicated and unique cultural assets, come together each year, and how has it been able to last so long in an industry notorious for its high turnover?
BOOKING THE LINEUP “We wouldn’t have gotten Paul McCartney if it wasn’t for the (Rolling) Stones and we wouldn’t have gotten the Stones if it wasn’t for Prince,” said Bob Babisch, Milwaukee World Festival’s vice president of entertainment. Babisch has been booking Summerfest for 39 years. His office at Summerfest’s headquarters at 639 E. Summerfest Place, formerly Polk Street, is modern and large. There are electric guitars on stands near a couch and photographs of various Sum-
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merfest acts from years past on the walls. Hanging on the wall nearest to his desk is a black and white photo of comedian George Carlin performing his infamous “seven words you can never say on television” routine at Summerfest in 1972. BABISCH “We try to use all seven words every day,” he joked. The desk he sits behind is a big upgrade from the one he started with in the late ’70s, which he said was made from two saw horses and an old door in an office that had to be padlocked shut. That was in the early years of the festival, before the grounds were paved and most of its permanent facilities were built. Prince headlined the Marcus Amphi-
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Aerosmith
TINSELTOWN - SHUTTERSTOCK.COM
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Bruno Mars
Tom Petty
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major tour manager. One agent, whom Babisch wouldn’t name, started out as the road manager of a small band on a small stage and now sells Summerfest and other festivals to some of their biggest headliners. Every time he runs into Babisch, he thanks him for getting him an extra case of beer and a pizza decades ago when he was managing that first band. “Every time we see him he remembers that—‘You guys, that case of beer and that pizza saved our lives that night,’” he said. “Little stuff like that comes back.” But securing acts also comes down to timing and money. And Smiley wants the biggest acts Summerfest can get. “We compete on a global basis for bands,” Smiley said. “The bands that we’re hiring, if we’re not going to pay them a certain price point, they’re going to play somewhere else. There’s no discount because it’s Milwaukee, Wisconsin.” Over the years, as artists have relied more on touring, the price to book a Marcus Amphitheater headliner capable of selling 23,000 tickets has risen. In 2014, Milwaukee World Festival shelled out millions to secure its amphitheater headliners, according to the latest tax information filed with the federal government. Bruno Mars’ performance on June 25 cost $933,929. Country star Luke Bryan’s performance on June 28 cost $841,549. Zac Brown Band’s performance on July 3 cost $835,000. And those were just three of 11 nights at the Marcus Amphitheater. In comparison, just five years earlier, the Big Gig paid George Straight $800,410, Kenny Chesney $667,042 and Bon Jovi $565,403. The price of each performance changes depending on the venue, past performances, the crowd the band is capable of drawing and its value in the market. When bands are hot, or when they’ve attained a certain level of fame, the price can jump dramatically. In 2013, the Eagles were paid more than $1.4 million for a single performance at Summerfest. The Foo Fighters and Aerosmith each took home $1 million for their performances in 2012. Tom Petty was paid $1.85 million for two performances in 2010, and $992,500 for one show in 2013. Keep in mind each of these bands or performers is also a company with em-
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theater at Summerfest in 2004. His tour that year was put together by a Los Angeles-based entertainment company called AEG Worldwide. “They loved the building because it rakes up real fast (in seating steepness) for an amphitheater,” Babisch said. “The selling point is, when you’re onstage and you’re at a sold out show, you feel like the audience is right on top of you. So Prince liked doing it and those guys liked the vibe of the building.” Last year, AEG was helping out with the Rolling Stones’ 2015 tour. “The Stones were saying they wanted to do stadiums, but they also wanted to do some odds and ends and (smaller shows), and these guys told them, ‘You should probably look at playing the Marcus Amphitheater on this tour,’” Babisch said. So they did. “They had so much fun they added in two songs to the set, because it was a good night,” Babisch said. Babisch and his fellow booking agents had been trying to get Paul McCartney to do a show at Summerfest for years, but for various logistical and scheduling reasons, it hadn’t come together. This year, however, Summerfest had an open date at the amphitheater that corresponded with an opening on McCartney’s tour—July 8. They put out the offer. The man scheduling McCartney’s tour knew the people who worked with the Rolling Stones at AEG and decided to call them up to see if Summerfest was a good idea. “The AEG people said it was great, it was a great place to play,” Babisch explained. “So he came back and said, ‘OK, let’s do it.’” Booking the world’s biggest music stars, who at any given time could be touring in Europe or Australia or New York or Los Angeles, is not an easy task and requires years of persistence, painstaking attention to detail and a solid international reputation among agents and tour managers. Babisch has seen many of the same faces at Summerfest over the past four decades and marveled as they matured into bigger and bigger roles in the industry over time—both playing in bands and managing them. He’s a firm believer in building relationships. Any of the people involved with the more than 700 acts that come through each summer could return a few years later as an amphitheater headliner or a
Foo Fighters
What it costs to book Summerfest headliners The Eagles (2013). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1.4 million Foo Fighters (2012) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1 million Aerosmith (2012) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1 million Tom Petty (2013). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $992,500 Bruno Mars (2014). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $933,929 SOURCE: MILWAUKEE WORLD FESTIVAL INC. IRS FILINGS.
ployees that need to be paid for booking their shows, scheduling their flights, finding their hotels, getting their meals and setting up their equipment. Amphitheater headliners typically get guarantees against percentage deals. That means the band either gets a certain guaranteed amount regardless of how many people show up or it makes a percentage, say 85 percent, of the show’s gross revenue after approved expenses. Whichever number is bigger is how much the band takes home. “The window in the Midwest is only so big, and our window is only 11 days,” Babisch said. “It takes probably 50 offers to get 11 days booked at the amphitheater. The other 39 don’t work out for whatever reason—either they want to go to Europe or they’re going to play Lollapalooza and we get blocked out. There’s a number of reasons. But we go fishing early for the amphitheater. The rest of the grounds, that’s our little chess game. The theory of
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Summerfest is to hit as many genres as we can every single day.” After the festival ends, the chess game begins for next year. Babisch and his crew of three booking agents sit in a room three days a week getting ideas from agents and pitching their own. They toss names on a screen and shuffle acts among the stages, careful to hit as many genres as possible while still being mindful of each act’s touring schedule. “It’s a logistical nightmare,” Babisch said of booking the shows and keeping everything running on time during the festival. “But it works.” Once they book the amphitheater headliners, they book the headliners at the general admission stages. Then they book the openers. But even when the lineup is set, their job isn’t over—there’s contracting, setting out detailed specifications on each band’s lighting and sound requirements, figuring out how to get bands and their 19
BEN STANLEY
BEN STANLEY
cover story
Clearwing Productions president and CEO Gregg Brunclik checks out the capabilities of a new light system and stands before rows of stage equipment at Clearwing’s West Allis warehouse.
trucks of equipment on and off stage, connecting agents with hotels and setting up transportation. “Every stage has two managers and then you have a production office, with one dispatcher and probably 15 people working there,” Babisch said. And overseeing all the headliners each night is a single man making sure every band stays on task. Signing the acts is one piece of the puzzle, but executing is another, and Summerfest relies on outside contractors to take care of other increasingly complex elements of putting on a strong music festival. One of them is production.
A BOOST TO VENDORS President and CEO Gregg Brunclik walks between rows of sound systems, kaleidoscopic light fixtures, metal racks, computers and control panels in Clearwing Productions’ 14-bay warehouse. “Most people wouldn’t think a company like this is sitting in West Allis,” he said. Within two weeks, the thousands of pieces of equipment stacked in his warehouse at 11101 W. Mitchell St. would be moved 10 miles east to the Summerfest grounds and installed on its stages. 20
For years his company, which has more than 100 employees, has taken care of every stage at Summerfest. In the late 1970s, Brunclik started tinkering with speakers in his dad’s basement and setting up sound systems for Milwaukee bands at different venues around town. Eventually, he started his own production company. Now, Clearwing is one of the larger full-service production players in the country and sets up stages, programs light shows and handles audio for large tours, festivals and even theatrical programs. “Summerfest is something we grew up to,” he said. “It was always something we aspired to be involved with when the company finally got enough credibility and brand recognition and the skill sets and technical chops to do it.” Now, some of Clearwing’s other clients include Tomorrow World in Atlanta; Summer Set in Somerset, Wisconsin; Spring Awakening in Illinois; and Bon Iver front man Justin Vernon’s new Eaux Claires Music Festival in Eau Claire. The company has also set up concerts for Pearl Jam at Wrigley Field and is currently handling the Steve Miller Band’s 2016 tour. Clearwing has a second location in B i zT i m e s M i l w a u k e e
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Phoenix that focuses on the performing arts and theatrical tours. Like Smiley and Babisch, Brunclik has also noticed an uptick in touring and festival action. In the past year, the company has grown by 22 percent. “Summerfest every year, all the ethnic festivals every year, those are definitely staples of our business that let us know what we can count on,” Brunclik said. “Not to toot our own horn, but in a way it works really well for Summerfest as well, because we are a very big player and therefore, Summerfest gets continuity across all their stages in one vendor and they don’t have to pay for hotel rooms and trucking and flights and all that stuff that would come with using a vendor out of state. “There’s a nice serendipity that works for both of us with Clearwing being here and the festivals being here,” he continued. “It’s a festival city. It just works well.” One of the best things about Summerfest from Brunclik’s perspective is the exposure his company gets to young bands. Like Babisch, he believes in building relationships—if a band enjoys working with Clearwing at Summerfest, it might give some thought to hiring the company to do tours if it takes off.
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“The nice thing about Summerfest is they bring so many acts in through the course of the festival that we get exposure to a lot of people,” Brunclik said. “Bob Babisch has a great knack for picking the new up-and-comers and the bands that are just about to break, so that really helps us get some good exposure to those folks while they’re on the cusp.” Among the stacks of equipment in the loading bay, some of Steve Miller’s stage guys tinkered with computers and lights in preparation for his tour this summer. “Our technology is moving forward so fast, every six weeks there’s something new coming out doing something a previous version didn’t do,” Brunclik said.
A CHANGING INDUSTRY To understand how the festival industry and Summerfest are changing, it’s a good idea to take a look at its history. Compared to other music festivals around the world, Summerfest is unique— it’s likely larger, older and more musically diverse than any other modern pop and rock-oriented festival you’ve visited. The only older continuously-running music festivals in the country are the Ravinia Festival in highland Park, Illinois
TROY FREUND PHOTOGRAPHY
(1904-present), the Newport Jazz Festival in Rhode Island (1954-present) and the Philadelphia Folk Festival in Pennsylvania (1962-present). None of them come close to matching Summerfest’s scale. To put into perspective how rare it is for a music festival to last longer than even one year, there were at least nine other rock and pop-oriented music festivals that held their inaugural shows the same year as Summerfest—1968. Summerfest was the only one of them that lasted past 1970. In 1969, there were at least 21 brandnew music festivals that never made it to a second year. Hundreds have come and gone, but Summerfest has remained. “The staying power of Summerfest is undeniable,” Smiley said. Part of the reason could be found in the festival’s roots, which reside in a 1931 endof-Prohibition celebration called Volksfest. According to Milwaukee historian John Gurda in his book “The Making of Milwaukee,” Volksfest was such a good time, the city’s residents decided they wanted to hold a similar celebration annually referred to as Midsummer Festival. The Midsummer Festival ran from 1933 to 1941. During its later years, former Mayor Daniel Hoan envisioned the festival becoming a national spectacle, similar to Mardi Gras in New Orleans, but the economic hardship of the Great Depression and the country’s involvement in World War II made it difficult to sustain. The idea of creating an internationally-known festival in Milwaukee lingered, however, and eventually Mayor Henry Maier revived the idea of creating a “Milwaukee World Festival” in the 1960s after visiting Oktoberfest in Germany. He wanted it to be a conglomerate of several smaller festivals dedicated to different styles of music and art. Summerfest was born. “You can go to a lot of festivals like the Bonnaroos and the Lollas and the Coachellas, and they’re all great festivals, but they’re all in one genre, or close to one genre, and their tickets are big,” Babisch said. “Our amphitheater tickets are big, too, don’t get me wrong, but there’s still a lot on the grounds for almost free of all different genres. It’s not like a bunch of people came in to try to make a bunch of quick money and then left. This is a festival for the people. We try to never lose that feeling.”
The Marcus Amphitheater, built in 1987, is nearing the end of its useful life, according to Summerfest CEO Don Smiley. Planning has begun to replace it.
Babisch, Smiley and Brunclik agreed—the industry is changing. But Summerfest, with its long history, stable base and wide musical variety, is positioned well for the future. “For a lot of artists, touring and festivals have taken on a whole new importance,” Smiley said. “That’s good for us; However, it’s become very competitive. There’s a lot of festivals out there. Some have come and gone but that does not mean they weren’t your competitors for several years and made offers to bands that we wanted to sign.” Babisch said he sees more festivals around the country adopting a similar, multi-genre model to Summerfest in the future—mixing up the lineups to stand out so they’re not just duplicating one another. But he does worry sometimes about the state of the music industry. “In the old days, the relationship was an act would come up and they’d play a club,” he said. “Then they’d play a bigger club. Then they’d go play a 1,000 seater or a 2,000 seater, then they’d play a 5,000 seater, and work their way up to that big thing. Now it seems that they churn through it so fast. They could have a single out there and social (media) blows you up because w w w.biztimes.com
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of how you look and how your video is— it’s more important than the actual song. And they throw these acts out in front of 20,000 people when they’re not ready for 20,000 people. I don’t know if the longevity of the business holds true there.” He said the risk and burnout rate makes labels cautions about taking a chance on some young acts. “There was a past where you fell in love with an act and you listened to it for years and years and years and years and you waited for the next album,” he continued. “That’s starting to thin out, I think. Country music’s still got it. It’s still there. But everything else seems too single-driven or one-song-driven.” But those are long-term concerns, and as Smiley likes to say: don’t create problems for yourself. For now, Smiley is focused on putting together Summerfest’s 50th anniversary next year. To make the festival more competitive, he said, major construction and renovation projects are being planned for the grounds, particularly around its middle and northern sections. Though specifics aren’t yet available, he said they will be completed in the next few years. There are also plans on the table to
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replace the Marcus Amphitheater, which Smiley said is nearing the end of its useful life. The Amphitheater was built in 1987 at a cost of $12 million. The organization’s most recent major festival grounds improvement was a twophase, $35 million project from 2010-’12 to rebuild the South Gate and the Briggs & Stratton Big Backyard stage and to build the BMO Harris Pavilion stage. Milwaukee World Festival Inc. leases Henry Maier Festival Park from the Milwaukee Board of Harbor Commissioners for around $1.4 million per year. Its current lease extends through 2030. “You can travel the globe and not find such an attractive festival site on the shores of Lake Michigan, or a Great Lake, or any body of water, for that matter,” Smiley said. “We’re caretakers of that land. That’s why we take it so seriously and are constantly improving it, tearing things down and rebuilding them. That’s what our guests, our customers, the residents of southeastern Wisconsin and the world have come to expect. They expect a higher level at Summerfest.” Summerfest will be held June 29 through July 10. The grounds will be closed on July 4. n 21
special report
business in
waukesha county
Leaders don’t see reduced water service area as barrier to Waukesha’s development BY ARTHUR THOMAS, staff writer
hen the city of Waukesha initially applied to withdraw water from Lake Michigan, the city proposed a water service area that included more than 50 square miles across five municipalities. The recommendation that emerged from the Great Lakes Regional Body’s work on the application essentially cut that area in half, limiting any diversion to the city’s current service area and a few parts of the town of Waukesha that are islands within the city. The amount of water the city could withdraw was also reduced, from 10.1 million down to an average of 8.2 million gallons per day. As a result of the scaled back request, the city will be less likely to expand its borders through annexations and the communities originally included in the service area won’t have the safety net of turning to Waukesha if there is a problem with their water supplies. But leaders for the city and the other communities say they don’t expect a reduced service area to hurt development moving forward. “I still see us having really good development potential,” said Waukesha Mayor Shawn Reilly. About 18 percent of the service area included in the original application was open and available for development, including about 5 percent within the city, ac-
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Waukesha mayor Shawn Reilly said the redevelopment of a former Kmart into an Xperience Fitness is among the types of projects he expects for the city.
cording to Ken Yunker, executive director of the Southeastern Wisconsin Regional Planning Commission. What remains of that land will still receive water from the city under the revised service area. The land outside the city borders is a different story. A 2000 land use inventory by SEWRPC that was part of Waukesha’s application included 4,222 acres developed as single-family residential outside the city, but within the original service area. The 2035 plan in the application called for an additional 4,328 acres in that area to be developed as single-family housing.
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The city estimated half of the planned residential development had taken place by 2010 and more has been added in the past six years, but Yunker said the land was included in the service area in case a public health need ever developed. It wasn’t envisioned that a water supply was going to be sent out to those communities, he said. That’s exactly why town of Waukesha chairman John Marek doesn’t see any impact on his community’s development because of the reduced service area. “For us, it was purely a safety net if our wells became contaminated,” he said.
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Many town residents are on their own wells and Marek suggested that even without having the city to fall back on, the combination of having their own water source and lower tax rates would be more attractive to some homeowners. He said there would likely be a dramatic slowing in those looking to be annexed into the city and the potential to not have the city drawing from the shallow aquifer was still a good outcome for the town. “The fact of the matter is, even if the town of Waukesha was included in the service area... there was no time in the
ARTHUR THOMAS
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ABOVE Waukesha’s downtown is ripe for redevelopment, mayor Shawn Reilly said, including a proposal that would convert a portion of the Waukesha County Historical Museum into apartments.
LEFT Waukesha’s Great Lakes diversion
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calls for the city to clean the water and return it via the Root River.
near future we would have (had) water supplied (by the city),” Marek said. The town of Waukesha made up the majority of the additional land in the originally proposed service area, but the story was similar for the town of Delafield. “It’s always good to have a safety net and that’s kind of how we viewed that,” said Larry Krause, town of Delafield chairman. The town had 1,200 acres included in the original application and the 2035 plan called for almost 75 percent of that to be single-family residential. The rest was planned for environmental, recreational or government use. “We have very little commercial activity in our town, and that is by design,” Krause said. But what if a water emergency happens? Marek noted that something like the 2012 pipeline spill in Jackson or hazardous materials moving through the town by train could potentially cause problems. “Hopefully nothing like that ever happens,” he said. If it did, Marek said it wouldn’t be feasible for the town, which has an annual budget of roughly $3 million, to pursue Great Lakes water on its own. At a May Waukesha Water Com-
mission meeting, Waukesha Water Utility general manager Dan Duchniak said some of the issues the city has seen in the shallow aquifer could come up again. “I would anticipate that there would be problems in that aquifer,” he said, highlighting the high levels of chloride he’s seen in the city’s shallow wells. He said if one of the communities did need to submit an application for Lake Michigan water, the utility might need to work with it. With the diversion setting the outer boundaries for the city, Reilly said he would like to work with the town to address the islands within the city. He was quick to point out that would take a number of years and no talks have taken place. “There would be a lot of issues,” he said. As for development in the city of Waukesha, Reilly said there are plenty of opportunities to repurpose older buildings. He highlighted The Shoppes at Fox River on Sunset Drive as one such development and the conversion of a former Kmart into an Xperience Fitness as another. The city’s downtown, which has undergone several summers of construction to improve streets and infrastructure, is ripe for redevelopment, he said. n w w w.biztimes.com
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New overtime rules announced. Millions of employees impacted. Are you ready?
June 27 - July 10, 2016
On Tuesday, May 17, the Department of Labor announced new rules on overtime pay, thereby raising the salary level at which employers are required to pay overtime. These changes impact the majority of profit and non-profit organizations, and the DOL estimates that 4.2 million U.S. workers who are currently exempt will now be eligible for overtime compensation. Employers are required to implement these changes by December 1, 2016. For a summary of the new rules and a copy of our webinar replay addressing these changes, implementation strategies and much more, please visit www.dkattorneys.com/newexemptionrules or contact Laurie E. Meyer at 414.225.1419 / laurie.meyer@dkattorneys.com of our Labor & Employment Team. BROOKFIELD | GREEN BAY | MILWAUKEE
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business in
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Waukesha County Business Alliance forming nonprofit to provide growth resources Organization expected to launch in September
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upon to expand in Waukesha County. “The economic development organization is going to be focused largely on business expansion, retention and attraction,” Kelley said. “And to really be a central point of contact to businesses that are looking to expand in Waukesha County.” The 335 Waukesha County businesses that responded to the September survey said the following would help them grow: A low tax environment; a pipeline of highly skilled workers; and access to a variety of financing options, including SBA loans and grants, training assistance, and apprenticeship and workforce development program capital. “At this point, Waukesha County has a revolving loan fund as well as a leveraged loan fund that are potential financial resources for businesses,” Kelley said. “Long term, we hope to significantly grow the financial tools that are available to help businesses expand. One of the roles of the new economic development director is to help build those resources.” Four entities will jointly fund the new organization’s operations for the first three years. Waukesha County will chip in $250,000 and the city of Waukesha will contribute $50,000. The University of Wisconsin Small Business Development Center and the Alliance will each fund $50,000, with their commitments paying the salary of a business outreach specialist at the nonprofit. After three years, the economic development organization and its funding sources will be reevaluated, said Dale Shaver, direcShaver tor of the Waukesha County Department of Parks & Land Use, who led Waukesha County’s development of the new organization. The previous Waukesha County Economic Development Corp. closed down in October 2014 due to an unsustainable B i zT i m e s M i l w a u k e e
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Waukesha County Business Survey conducted in September indicated 84 percent planned to expand their workforce and 72 percent planned to expand or remodel their business space in the next three years. Evidently, there’s more economic growth on the horizon for Waukesha County. The key will be assisting those businesses in making their expansion plans a reality. Last month, the Waukesha County Business Alliance was awarded a contract to do just that by administering the county’s new economic development organization. It is using the survey to formulate its strategy. The Alliance is busy assembling the paperwork to obtain 501(c)(3) nonprofit status and is engaged in a search for a leader and a board of directors, said Suzanne Kelley, president of the Alliance. The economic development director application deadline was June 15, and now the Alliance is sorting through them and conducting interviews to determine who will lead the organization. The majority of applicants are from Wisconsin, Kelley said. Kelley “We have quite a few applications in already. Probably in the area of 15,” she said recently. “We hope to have a director by August 1.” The goal is to officially launch the economic development organization in September, Kelley said. Marketing and administrative support for the nonprofit will be provided by the 10-employee Alliance, which will colocate the organization at its offices, 2717 N. Grandview Blvd. in Waukesha. The Alliance, which was the only applicant for the program, already receives calls from its more than 1,000 business members about which resources they can draw
BY MOLLY DILL, staff writer
A fall survey showed 72 percent of Waukesha County businesses plan to expand or remodel in the next three years.
financial structure. The county is working on a cooperation agreement among the other municipalities within Waukesha County to financially sustain the new organization and provide feedback, he said. “Our hope is that we will have an agreement drafted and then be back out to meet with municipalities over the next two months here as they convene to review their budgets for 2017,” Shaver said. The Alliance’s nonprofit, a public-private partnership, will initially be staffed by the economic development director and the business outreach specialist. It will have an independent board of directors comprised of business leaders, Shaver said. Its primary focus will be on helping stage one (fewer than 10 employees) and stage two companies (between 10 and 99 employees) grow in the county. “We know that we have a lot of stage
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one and stage two businesses and that is probably our biggest opportunity to drive economic growth throughout the county,” Kelley said. The Waukesha County Business Survey also made clear there may not be enough space available for all of the business expansion in the works, Shaver said, so the county is studying its land use and evaluating offering incentives for additional industrial and business park development. Municipalities could use the results of this land study to determine whether to form tax increment financing districts to spur industrial park development, he said. “We heard from some local officials that they just don’t have the expertise to market lands that are in their municipalities…and they need an economic development organization to help them do that,” Shaver said. n
PRESENT
# 1 B U S I N E S S of the year
ITU AbsorbTech Inc.
Wisconsin Oven Corp.
Price Engineering
Lakeland Supply Inc.
Best Version Media LLC
Felss Rotaform LLC
Habitat for Humanity of Waukesha County
Century Fence Co.
KS Energy Services LLC
Bruno Independent Living Aids Inc.
Landmark Credit Union
SPONSORED BY: SUPPORTING SPONSOR:
WELCOME
Top 10 Table of Contents
The secrets to their success
#1 Business of the Year: ITU AbsorbTech Inc.. . . . . . . . . . . . . . . . . . . . . . . . . 30
Each of the Top 10 Businesses of the Year has a different secret, but they all have one thing in common: They’re wildly successful. Representing sectors ranging from laundry to financial services and employing more than 2,700 people, these innovative companies have a major impact on the region. Read the following profiles to learn what makes each one tick and who drives the companies forward. The Top 10 Businesses of the Year were recognized by the Waukesha County Business Alliance and BizTimes Media at a luncheon held at the Country Springs Hotel &
Conference Center in Waukesha on June 23. The annual awards program recognizes companies headquartered in southeastern Wisconsin that have demonstrated consistent financial growth and dedication to good business practices. The winners were selected by an independent panel of judges based upon criteria that included financial growth, employee growth, customer focus, employee relations and community service.
The other Top 10 Businesses of the Year are: Best Version Media LLC. . . . . . . . . . . . . . . . . . . . . . 32 Bruno Independent Living Aids Inc.. . . . . . . . . . 33 Century Fence Co.. . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Felss Rotaform LLC. . . . . . . . . . . . . . . . . . . . . . . . . . 35 KS Energy Services LLC . . . . . . . . . . . . . . . . . . . . . 36 Lakeland Supply Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . 37 Landmark Credit Union. . . . . . . . . . . . . . . . . . . . . . 38 Price Engineering. . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Wisconsin Oven Corp.. . . . . . . . . . . . . . . . . . . . . . . . 42 Community Distinction: Habitat for Humanity of Waukesha County . . 44 Profiles were compiled by BizTimes writer Alysha Schertz Photos by Paul Gaertner of White Dog Photography.
Congratulations to the winners of the Waukesha County Business Alliance’s
Top 10 Businesses of the Year!
Without your support, it’s just an empty stage. Donate now at www.UPAF.org. 26
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Insurance products are offered by licensed agents of Associated Financial Group, LLC (“AFG”) • SECURITIES AND ADVISORY SERVICES PROVIDED BY REPRESENTATIVES OF AFG ARE OFFERED BY LPL FINANCIAL, member FINRA and SIPC. • Fiduciary, administrative, and planning services are provided by Associated Trust Company, N.A. (“ATC”). Investment management services are provided to ATC by Kellogg Asset Management, LLC (“KAM”). • AFG, ATC, and KAM are all wholly-owned subsidiaries of Associated Bank, N.A. (“AB”). AB is a wholly-owned subsidiary of Associated Banc-Corp (“AB-C”). LPL Financial is NOT an affiliate of AB-C. • AB-C and its subsidiaries do not provide tax, legal or accounting advice. Please consult with your tax, legal or accounting advisors regarding your individual situation. Loan products are subject to credit approval and involve interest and other costs. Please ask about details on fees and terms and conditions of these products. Property insurance and flood insurance, if applicable, will be required on collateral. Associated Bank, N.A. Member FDIC. Equal Housing Lender. (6/16) 8904
M E S S A G E S from the sponsors
2015 Top 10
Awards of the Year Businesses
and anticipating your needs. From providing financial solutions to corporate giving and volunteerism, Associated is committed to exceeding customers’ expectations by earning their loyalty, trust and respect.
Luncheon Associated Bank is honored to sponsor this year’s Top 10 Businesses of the Year Awards because we believe in the power of strong business partnerships to help drive the economic engine of our community. Associated offers a full range of financial products and services, including personal banking, commercial financial services, strategic benefits consulting, insurance and risk management, and human resource solutions. As the largest bank headquartered in Wisconsin and the second-largest employee benefits specialist broker in the country, Associated is committed to understanding
e Year
of th Businesses 2015 Top 10
Clark Rasmussen Sr. Vice President Commercial Banking Division Associated Bank 262-446-4757 Clark.Rasmussen@associatedbank.com
Scott Fuller Sr. Vice President Employee Benefits Practice Group Leader Associated Financial Group 262-542-8822 Scott.Fuller@AssociatedFinancialGroup.com
workplace United Way campaign, volunteerism, or advocacy for our most pressing issues. When local businesses and individuals with the passion, expertise and resources unite, we can create long-lasting positive change in our four-county region.
United Way of Greater Milwaukee & Waukesha County, in partnership with the attorneys of Reinhart Boerner Van Deuren, is proud to sponsor the 2016 Waukesha County Business Alliance Top 10 Businesses of the Year Awards. Congratulations to the 10 outstanding businesses who are receiving the award this year. Thank you for your commitment to creating an economically sound community by providing employment opportunities in our region, and by encouraging your employees to give back to the community, either through a
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We all win when a child succeeds in school, a neighborhood turns around, families have good health and workers have solid jobs. Together, we can change our community Thanks for contributing to the solution. Live United.
Mary Lou Young President & CEO United Way of Greater Milwaukee & Waukesha County B i zT i m e s M i l w a u k e e
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stand the importance of good business practices. For 45 years, we have provided extraordinary service and practical solutions to closelyheld businesses and their owners – partners in their success. Vrakas CPAs + Advisors is proud to once again sponsor the Top 10 Businesses of the Year Awards. We can think of no better way to support the business community than by recognizing good business practices through financial growth, employee relations, customer-focused commitment and community service efforts. This year’s winners are leading by example and we commend them for their hard work and dedication. At Vrakas CPAs + Advisors, we also under-
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To all the winners, congratulations again on this outstanding accomplishment. Vrakas CPAs + Advisors wishes you all continued success!
Jim Holmes Managing Shareholder Vrakas CPAs + Advisors
Reinhart Boerner Van Deuren s.c.
Lives United, you can too! We partner with you United Way because it is the best way to connect our company and employees to our local commmunity. Jerry Janzer Reinhart Boerner Van Deuren s.c.
SPECIAL THANKS TO OUR SPONSOR:
UnitedWayGMWC.org @UnitedWayGMWC /UnitedWayGMWC
# 1 B U S I N E S S of the year
ITU AbsorbTech Inc. 2700 S. 160th St., New Berlin www.ituabsorbtech.com FOUNDED: 1930 INDUSTRY: Industrial laundry EMPLOYEES: 361 2015 ANNUAL REVENUE: Approximately $50 million
New Berlin-based ITU AbsorbTech, one of the largest family-owned and -operated laundry service companies in the country, is the #1 Business of the Year in the 2016 Top 10 Businesses of the Year awards program, presented by the Waukesha County Business Alliance in partnership with BizTimes Media. Throughout 85 years in the business, ITU has not only consistently provided high-quality services for its customers, but it also has evolved to provide more sustainable and waste-reducing products and services.
Congratulations! from the strategic partners behind
ITU AbsorbTech, Inc.
Congratulations on being recognized as one of 2016’s top businesses! BMO Harris is proud to be your partner.
BMO HARRIS BANK
Meghan Slocum 41 4.7 65 . 7606 • BM O HA RRIS . CO M / CO M M ER C I AL
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Top row: Dan Wankowski, Tom Westrom, Bill Jahns, Mike Subotich Bottom row: Daniela Silva, Malinda Molkentin, David Leef, LeeAnne Fritsch, Mark Jahns
“Our focus has always been on the customer,” said Jim Leef, president and chief executive officer of ITU AbsorbTech. “Since the foundation of our company, that has been the focus.” Today’s laundry service industry is focused on cost cutting, waste prevention and sustainability. ITU has always had an eye on innovation, and the continuous goal has been to use less energy, heat, water and product to accomplish the same outstanding level of service, Leef said. The company has developed proprietary in-house wastewater treatment processes and new product lines to assist its customers with sustainability goals. “We do things in our facilities that aren’t done by anybody else in the world,” Leef said. “We can help major customers of ours eliminate thousands of pounds of waste per year.” In the early 1990s, ITU AbsorbTech created the SorbIts brand in response to a growing need for customer waste reduction. The SorbIts family of textiles is a line of reusable absorbent products that help soak up industrial process fluids and oils. The product line includes floor mats, spill socks, inserts, towels and liners, among other things. The products are used to soak up industrial liquids at a manufacturing facility and then ITU AbsorbTech picks up, launders and delivers
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clean SorbIts back to the company, Leef said. “Customers have greater assurance,” he added. “Number one, they aren’t paying for the cost of disposable products and number two, they can trust that we’re going to recycle, not landfill, the fluids and oils we collect.” Additionally, the product line emphasizes ITU’s commitment to safety and employee wellness, Leef said. ITU AbsorbTech regularly issues waste reduction reports for clients so they can see the value of their commitment and calculate their cost savings. In 2015, ITU AbsorbTech marked its sixth consecutive year of solid growth, and recorded the highest earnings it has ever had in its 85year history. The SorbIts product line continues to be a major factor in that growth, Leef said, but the commitment to customers and innovation is important, too. The company currently operates 12 facilities across the country, in Wisconsin, Illinois, Michigan, Indiana, Pennsylvania, South Carolina and Texas. “Our financial outlook is very rosy,” Leef said. “We continue to expand with our existing customers thanks to our focus on customer service, and the message of helping companies eliminate and reduce their waste streams has been received well on a broad scale.”
CHANGE HAPPENS
Embrace it. Learn from it. Grow with it. Profit from it.
Service | Solutions | Success
T O P 1 0 award recipient
Best Version Media LLC 19335 Janacek Court, Brookfield www.bestversionmedia.com FOUNDED: 2007 INDUSTRY: Print media EMPLOYEES: 56 2015 ANNUAL REVENUE: Not disclosed
In 2007, Brookfield-based Best Version Media LLC was established with six community magazines in the Milwaukee metropolitan area. According to David Durand, chief executive officer of the company, Best Version took a few years to research and really get to know the market, and in 2012 came out of incubation and began actively growing. Today, Best Version Media publishes more than 300 publications across all 50 states in the U.S., and in 10 provinces throughout Canada. It also recently established an office in Ireland. “We publish niche magazines at micro-targeted levels,” Durand said. “We’ve been called
the ‘Facebook of print media.’ We’ve figured out how to basically do social media in print form, and that’s a key differentiator.” Locally, Best Version Media produces publications for several area communities, including Brookfield, Whitefish Bay, Bayside, River Hills, Pewaukee, Delafield and Elm Grove. “Our products help elevate the local economy,” he said. “For a long time in history, neighborhoods and associations have been putting together different types of messages and newsletters for their members. Local towns and communities had local newspapers. We looked at both of these things and asked our-
David Durand selves how we could do this better, and that’s what we did.” The company currently employs 56 people at its 20,000-square-foot facility in Brookfield. Best Version has added more than 170 magazines since January 2015, and has increased readership by more than 100 percent in the same time period. “We’re still in hyper growth mode right now,”
Durand said. “I will tell you, more than anything, what makes this business work are the great people we have here. They take our products and our culture seriously, and at the same time want to be the ‘best versions’ of themselves, as well.” The company plans to continue to grow nationally and internationally, and is also looking to expand its products and services through research and development opportunities.
Congratulations! from the strategic partners behind
Best Version Media LLC 2212 E. Moreland Blvd.
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T O P 1 0 award recipient
Bruno Independent Living Aids Inc. 1780 Executive Drive, Oconomowoc www.bruno.com FOUNDED: 1984 INDUSTRY: Manufacturing wholesale EMPLOYEES: 365 2015 ANNUAL REVENUE: Not disclosed
Mike Bruno Bruno Independent Living Aids has been helping individuals achieve independence for more than 30 years. In that time, the company has experienced record growth in all but one year. While some growth can be attributed to the rising population of individuals who need mobility services, more can be attributed to Bruno’s company culture and its commitment to its customers and its people. For Mike Bruno, it’s a personal business, and one his family has been in for more than 30 years. “My father had been in this industry before with other businesses,” Bruno said. “He saw a
real opportunity with the advent of the minivan and the small electric scooters to really help people. That’s when he moved and started the company in Wisconsin.” Bruno Independent Living Aids was formed in 1984. Engineered and manufactured in Oconomowoc, the company’s stair lifts and vertical platforms help individuals with mobility inside, while its scooter, power chair and wheelchair lifts easily stow mobility devices inside or outside a person’s vehicle. The company’s signature valet seat is the world’s most popular turning automotive seat. “The growth we’ve experienced is really
2016 GIVING GUIDE
any real increase in our physical footprint,” Bruno said. “That speaks a lot to our commitment to lean practices, the ability and flexibility of our workforce and our continuous improvement culture.” Bruno recognizes that the employees are the company’s most valuable asset, and says the investment in them has really paid off for the business. “We put a lot of time and effort into educating our workforce,” he said. “Even in simple things like communication, problem-solving and teamwork techniques.”
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remarkable,” Bruno said. The company grew steadily and underwent a restructuring to maintain that growth, Bruno said. Since 2007, Bruno Independent Living Aids has tripled its business, obtaining the highest sales percentage increase in a decade in 2015 and increasing its workforce by nearly 20 percent in the past three years. In 2015, the company also expanded into the commercial markets and now offers commercial vertical platform lifts in its line of products. “We’ve really been able to do a lot without
Utilizing the benefits of the ReActiv Back, the upholstered version features a fabric cover over the hexagonal design for additional support.
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T O P 1 0 award recipient
Century Fence Co. 1300 Hickory St., Pewaukee www.centuryfence.com FOUNDED: 1917 INDUSTRY: Building and construction EMPLOYEES: 105 2015 ANNUAL REVENUE: $51 million
John Connell A business that has survived for 100 years is a rare occurrence in today’s economy. A business that has survived 100 years and continues to grow is even rarer, but Pewaukee-based Century Fence Co. has done just that. The company started out as a steel scrap business, but today is focused in two divisions: commercial industrial fencing and road striping and painting. “Both divisions complement each other well,” said John Connell, president. Century Fence added road striping and painting when it was working as a fence and guardrail contractor for the Wisconsin Depart-
ment of Transportation, Connell said. The two divisions currently represent equal parts of the company’s revenue stream. The company has built fencing at Camp Randall Stadium, Lambeau Field, and every prison in the state of Wisconsin. Century Fence continues to explore new opportunities and types of fencing in order to provide better products and services to its customers. “We’re a quality-driven company,” he said. “We deliver a quality product and believe in strong customer loyalty, employee development and corporate citizenship.” The owners are extremely involved in the
Thank You!
day-to-day operations of the business, and look for a long-term commitment from people they hire, Connell said. “It doesn’t always work, but when someone buys in to the way we do business here, they typically stay with us,” he added. Century Fence, now in its fourth generation of family ownership, has experienced increased growth for the past seven years in a row, Connell said. “That has allowed us to bring on new staff (and) invest in more equipment and the future
growth of the company,” he said. Century Fence employs approximately 50 people at its Pewaukee headquarters and an additional 60 at its other locations in Waukesha; Green Bay; Knapp, Wisconsin; and Forest Lake, Minnesota. According to Connell, the company, on the verge of its 100th anniversary celebration, is a busy and exciting place right now. “Both divisions are extremely busy,” he said. “We’re always looking for new opportunities and new ways to innovate.”
Congratulations! from the strategic partners behind
Century Fence Company Congratulations on being recognized as one of 2016’s top businesses! BMO Harris is proud to be your partner. BMO HARRIS BANK Meghan Slocum 414.765.7606
To our employees, partners, and customers for helping us become one of Waukesha County’s Top Businesses of 2016.
BMOHARRIS.COM/COMMERCIAL
We are proud to announce that as of June 20th, Century Fence will be celebrating it’s 100th year as a family operated and owned business.
Congratulations Century Fence Company on this outstanding recognition. We look forward to helping you continue to succeed! VRAKAS CPAS + ADVISORS 262.797.0400
FOREST LAKE, MN | GREEN BAY, WI |PEWAUKEE, WI CENTURYFENCE.COM | (262) 547-3331 34
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T O P 1 0 award recipient
Felss Rotaform LLC 5160 S. Emmer Drive, New Berlin www.felss.com/en/ FOUNDED: 1999 INDUSTRY: Manufacturing wholesale EMPLOYEES: 53 2015 ANNUAL REVENUE: $21.7 million
A rare machining method and its commitment to its customers drive growth at Felss Rotaform LLC in New Berlin. The company was recently one of six to be honored with the Wisconsin Manufacturer of the Year Award, and it has experienced record growth year after year over the past decade. “We continue to find creative applications for our technology,” said David Gazzo, chief executive officer of Felss Rotaform. “We have a very talented, competent team of engineers that is able to identify ways to use our technology to produce more and gain more market share. That has been key for us.”
Felss is one of only two companies in the U.S. that specializes in rotary swaging, a unique process capable of consistently producing accurate, durable, lightweight parts for the automotive industry. “Not a lot of companies are capable of producing the parts we produce,” Gazzo said. “We can produce very special geometries in certain tubes.” While the process provides additional growth opportunities for the company, it also requires a committed focus to the training and development of employees in order to ensure a talent pipeline.
The Felss Rotaform team. “We know we’re not going to just find engineers or operators that know anything about rotary swaging,” Gazzo said. “Employee retention and proper training is fundamental.” Felss’ leaders encourage employees at all levels to share feedback and offer input. “We know that some of the best ideas and solutions may come from those individuals working the closest with the machines,” he said. “We rely on that to continuously improve our products and our services.” The company continues to look for expan-
sion opportunities and is currently evaluating different options for additional space, Gazzo said. Because of the nature of the automotive industry, Felss has contracts signed for several additional years and expects its growth to continue. “Our main challenge is finding the right people to continue to grow,” he said. “That’s not a new challenge. We have a great team here, and we are always looking to expand that team. We are doing well, and the forecast is looking very good for us.”
Felss Rotaform LLC
Congratulations! from the strategic partners behind
Felss Rotaform LLC
is honored to be named a Top 10 Business of the Year
Congratulations, Felss Rotaform on your Top10 award! Cheers to your continued success and growth!
We congratulate all Top 10 Winners!
CJ & Associates, Inc. 262.786.1772 • WWW.CJASSOCIATESINC.COM
Congratulations to Felss Rotaform from all of us at GoTech. We wish you continued success and growth. GoTech 1.855.563.1878 • GOTECHSOLVES.COM
Doris Brosnan and everyone at von Briesen & Roper congratulate Felss Rotaform on this honor! DORIS BROSNAN
von Briesen & Roper, s.c. 414.287.1405 • WWW.VONBRIESEN.COM
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T O P 1 0 award recipient
KS Energy Services LLC 19705 W. Lincoln Ave., New Berlin www.ksenergyservices.com FOUNDED: 2005 INDUSTRY: Building and construction EMPLOYEES: 1,053 2015 ANNUAL REVENUE: $219 million
KS Energy Services in New Berlin prides itself on its ability to successfully maintain and grow a true family business. Dennis Klumb, Jr., president and chief executive officer of the company, manages the day-to-day operations alongside his three brothers, Michael, Richard and Shawn, and their business partner, Tom Schaitel—the “S” in KS. KS Energy provides construction and maintenance services to the natural gas, electric and telecommunications industries. Its clients in Wisconsin include We Energies, Madison Gas & Electric, Alliant, Xcel Energy, Wisconsin Public Service, TDS and AT&T.
“My father, grandfather and uncle started Arby Construction, a utility services company, back in 1972. We all worked there from high school on up,” Dennis Klumb, Jr. said. They sold the company in 2000 but maintained management of the operations. The entrepreneurial bug struck again, however, and in 2004 the family members resigned. When the one-year non-compete agreement expired on May 23, 2005, KS Energy Services was born. “We started right up and did $7.5 million in business that first year,” Klumb said. “This year, we’re on track to do $240 million. We’ve experienced incredible growth.”
Front row: Tom Schaitel and Dennis Klumb, Sr. Back row: Rick Klumb, Shawn Klumb, Dennis Klumb, Jr. and Mike Klumb. Part of the company’s growth can be attributed to need, Klumb said. “The gas and electric utility infrastructure, not just in Wisconsin but around the country, is in dire need of maintenance, repair and replacement,” he said. “Another big part of it is our team,” Klumb said. The company has a great relationship with its unions and it continues to work closely with
them to draw more talent into the industry. “Additionally, our executive team is very ‘boots on the ground.’ I have three talented brothers who are out of town every week overseeing projects. A lot of companies don’t have that,” Klumb said. “Our team is focused and committed to providing the very highest level of service for our clients. We were taught at a young age to do what’s right and that’s how we run our business.”
Working with a small bank is a pretty big deal.
Thank you!
We’re honored to be named a Top 10 Business of the year. We could not have done it without the help of our employees and customers. We truly appreciate the support of our customers, strategic business partners, family and friends.
KPYLJ[S` ^P[O [OL KLJPZPVU THRLYZ HUK OH]L HJJLZZ [V V\Y OPNO WYVÄSL HUK L_[LUZP]L
Through your support, we have become a recognized leader in providing construction and technical services to the natural gas, electric and telecommunication industries throughout the United States. Combined we operate in 25 states and employ over 3,000 people.
19705 W. Lincoln Avenue • New Berlin, WI 53146 262-574-5100 • www.ksenergyservices.com 36
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Since 1918
T O P 1 0 award recipient
Lakeland Supply Inc. N8 W22380 Johnson Drive, Waukesha www.lakelandsupply.com FOUNDED: 1982 INDUSTRY: Wholesale EMPLOYEES: 33 2015 ANNUAL REVENUE: Not disclosed
For more than 30 years, Waukesha-based Lakeland Supply Inc. has been providing packaging and janitorial industrial supplies for companies throughout the U.S. Throughout that time, the company has experienced consistent, record-setting growth. In 2015, Lakeland Supply gained more than 140 new customers and increased its gross profit per order by 5 percent compared to 2014. “Recently, our growth has really been focused on the people that we have,” said Vince Schmidt, president. “We’re focused on new markets, new opportunities and expanding geographically throughout the Midwest.”
Lakeland Supply is committed to growing accounts with existing customers and taking an innovative approach to problem-solving for its clients. “We actually live our core values – it’s more than just a statement for us,” said Richard Suhar, chief operating officer. “Our goal as a company is to leave everything we touch better than it was before.” For the company’s leaders, it’s about God, family and Lakeland, and it starts with hiring, training and developing the right people, Schmidt said. The company remains focused on work-life balance, commitment to family and making
The Lakeland Supply Inc. team. Lakeland a fun, rewarding place to work. “We’re a customer service-oriented business and our people definitely make the difference,” added Suhar. Lakeland Supply has expanded its products and services to include “kitting” for its clients, in which it takes four or five manufactured parts and puts them together in a package. “The key for us is listening to our clients,” said Larry Schmidt, chief financial officer. “Our job is to find out where we can help them. If we
can, we’re going to do that.” In response to a customer, Lakeland sought its ISO 9001 certification, a quality management certification that ensures customers get consistent, good quality products and services. The standard is based on several quality management principles and has set the foundation for customer satisfaction at Lakeland. “It really sets us apart in the marketplace, and it’s entirely focused on the customer and customer satisfaction,” Larry Schmidt said.
Congratulations! from the strategic partners behind
Thank You!
Lakeland Supply Inc.
Congratulations Lakeland Supply! Diversified is proud to be your employee benefits partner and celebrate your great success!
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T O P 1 0 award recipient
Landmark Credit Union 5445 S. Westridge Drive, New Berlin www.landmarkcu.com FOUNDED: 1933 INDUSTRY: Financial services EMPLOYEES: 496 2015 ANNUAL ASSETS: $2.86 billion
Throughout its 83-year history, Landmark Credit Union has grown from a single limitedservice provider to the largest credit union in Wisconsin, with 31 branch locations serving more than 270,000 members. “We’re very proud of our history, and the key to our consistent growth story is heavily driven by the member experience that has earned us the right to expand,” said Jay Magulski, president and chief executive officer of Landmark. “The referrals and feedback provided to us by our members really speaks to the grassroots manner (by which) the organization has grown.”
The company also has grown through strategic acquisition, including the acquisition of Hartford Savings Bank in 2014. Landmark was founded in 1933 when employees of the Rex Chainbelt Co. (later known as Rexnord), pooled their money to form Rex #2 Credit Union. “More and more people in Waukesha County and beyond are choosing Landmark for their banking needs,” Magulski said. “We serve each and every member and support their own unique needs.” According to a member survey that Landmark recently conducted, more than 89 percent
Congratulations! from the strategic partners behind
The Landmark Credit Union team. of its members would personally recommend the brand, Magulski said. “That’s incredible, and a testament to how we view our members as partners,” he said. More than 600 associates work for Landmark Credit Union and know they are going to be taken care of each day, Magulski said. “Our associates know we have a tag line that we use to not only summarize our brand, but also our brand promise: ‘You’re worth more here,’” he said. “That applies to our associates as well as to our members.”
The company has long had competitive compensation and benefit packages, but also offers advancement, training and educational opportunities for its associates. “We’re going to continue to look for smart ways to continue to grow our business successfully,” Magulski said. “It’s good for our members, our associates and the communities we serve, and allows more people to experience our brand of financial services and opportunities. And our success allows us to continue to give back in even more meaningful ways.”
C O M M I T T E D TO
Landmark Credit Union BizTimes Media has won several awards in recent years for editorial excellence from the Alliance of Area Business Publishers (AABP) and the Milwaukee Press Club. The AABP is a national association, so its awards recognize BizTimes Milwaukee as one of the best local business publications in the country. Our companion website, BizTimes.com, has also won numerous local and national awards.
Congratulations on all of your achievements. We wish you many more to come!
BIZTIMES MEDIA AWARDS EICHENBAUM/ASSOCIATES ADVERTISING INC.
Alliance of Area Business Publishers 2016 2016 2016 2016
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Milwaukee Press Club 2015 SILVER: 2015 BRONZE: 2015 BRONZE:
Best Single Cover Design Best Overall Design Best Website Design
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IN GREAT COMPANY We’re proud to be among those recognized as a Top 10 Business.
(262) 796-4500 | landmarkcu.com | Over 30 Locations
T O P 1 0 award recipient
Price Engineering 1175 Cottonwood Ave., Hartland www.priceeng.com FOUNDED: 1953 INDUSTRY: Manufacturing/wholesale EMPLOYEES: 146 2015 ANNUAL REVENUE: Not disclosed
Price Engineering is a family business that has called Waukesha County home since 1974. The company has a fearless commitment to succeed, and has never stopped designing, engineering, repairing and advancing hydraulics and pneumatic systems since its foundation. “We’ve more than doubled in size since 2009,” said Thomas Price, Jr., president and chief executive officer. “It’s been organic growth, just continuing to find areas of our business to enhance in order to take better care of our customers.” What began as a wholesale distribution company for fluid power components has evolved to become much more, Price said.
Today, Price Engineering has created specialized individual business units for mobile and industrial hydraulics and control; automation and motion control; fluid conveyance; autolubrication systems; field service and repair; and retail hose and fittings stores. “Our goal is to provide better support for our clients and their specific needs,” he said. In an industry that is often considered dirty because of its use of oil in big machinery, Price Engineering is committed to sustainability through innovation, Price said. The company is currently awaiting a patent on its Cyclone hydraulic reservoirs, which re-
Brian Klockow, Matt Kacsur, Dave Cerroni, Teri Shaver, Thomas Price Jr., Joe Konyn, Sarah Meekma, Brad Felber and Terry Glidden. duce the oil required in a system by 90 percent. “The future of our business demands our focus on creating a better footprint for our industry,” Price said. “People come to us because they like how we operate; they know we can make their machines safe and more efficient.” The sustainability practices extend to Price Engineering’s hiring practices, as well. The company takes a “hire for life” approach to business, Price said. “We have approximately 150 employees and nearly 40 percent of them have been with the
company for 10 years or more,” he said. “There’s a unique difference between a family-owned business and some large corporations. We make decisions based on our commitment to our employees. We believe in continuous education that enhances their knowledge bases and fulfills their desires to advance their careers.” Currently, Price Engineering is focused on launching a new brand platform for its Cyclone hydraulic reservoir, and plans to use the new product and others to work toward predictive maintenance and other innovations in the industry.
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Congratulations! from the strategic partners behind
C O S B E ’ s 7 th A n n u a l E x e c u t i v e R o u n d t a b l e BREWERS OUTING SPONSORS
Price Engineering
I T D O E S N ’ T H A V E T O B E L O N E LY A T T H E T O P !
Thank you for your leadership and entrepreneurial commitment to Waukesha County and the State of Wisconsin. AMERICAN BANK MIKE GRYCZKA – VICE PRESIDENT DICK HENSLEY – PRESIDENT, S.E. WISCONSIN
262.523.1000 MEMBER FDIC
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Congratulations Price Engineering on this outstanding recognition. We look forward to helping you continue to succeed!
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INNING SPONSORS Associated Bank Central Office Systems Christopher Morgan Fulfillment Services Creative Business Interiors Diversified Insurance Solutions Godfrey & Kahn Sikich SVA Certified Public Accountants
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T O P 1 0 award recipient
Wisconsin Oven Corp. 2675 Main St., East Troy www.wisoven.com FOUNDED: 1973 INDUSTRY: Manufacturing EMPLOYEES: 115 2015 ANNUAL REVENUE: $30.8 million
Wisconsin Oven Corp. is a true entrepreneur story. The company has survived and thrived through several challenges, including two acquisitions and a recession. David Strand, current president and chief executive officer, started with the company in 1986 as a floor sweeper. “I started out as the guy who did all the jobs that nobody wanted to do,” he said. “The company has a passion for its people and letting people from the organization be a part of the ideas.” In 1993, Strand and a colleague, Duane Lauersdorf, designed and patented a product
for the printing industry. The equipment helped skyrocket the company’s annual revenue from $6 million to $20 million by 2000, Strand said. Over the years, digital printing and other changes in the industry forced Wisconsin Oven to reinvent its business, product offerings and market focus. Strand was named president in 2005, and helped lead the company to record revenues each year. “The key is celebrating the wins,” Strand said. “We share results and we have a very open book policy. We let the employees know how
David Strand and the Wisconsin Oven Corp. team. the company is doing and we reward them for good performance.” Today, Wisconsin Oven Corp. is the largest employer in East Troy. The company has been acquired twice under Strand’s leadership, thanks to a continuous focus on innovation and a champion culture, he said. Strand and the executive team first sold the company in 2012 to finance a much-needed manufacturing facility. The team maintained leadership of the
company, survived the Great Recession and in March 2015, Wisconsin Oven competitor Thermal Product Solutions purchased the company. Strand was named president and chief executive officer of the entire TPS group, which includes facilities in Wisconsin, Pennsylvania, Michigan and California. Moving forward, Strand and his team are focused on expanding the East Troy facility and developing each plant to be able to manufacture any product in the company’s line.
Congratulations! from the strategic partners behind
Wisconsin Oven Corporation
ORDER YOUR REPRINTS!
Congratulations Wisconsin Oven Corporation on the recognition for commitment to customer focus and excellence. WHYTE HIRSCHBOECK DUDEK S.C.
On July 1, 2016, the law firms of Whyte Hirschboeck Dudek and Husch Blackwell will combine to deliver industry-focused legal services to our valued clients.
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C O M M U N I T Y D I S T I N C T I O N award
Habitat for Humanity of Waukesha County 2020 Springdale Road, Waukesha www.hfhwaukesha.org FOUNDED: 1989
Habitat for Humanity has been a familiar name in Waukesha County for more than two decades. Historically, the organization has built an average of one home per year in the county. In 2013, however, it underwent a strategic restructuring, added new leadership, and began operating more as a business. “We were doing great work, but we knew we could be doing more for this community,” said Diane McGeen, executive director of Habitat for Humanity of Waukesha County. As a result of its efforts, the organization has grown tenfold, McGeen said. “Today, the organization is serving more
families by offering them more opportunities for affordable homeownership,” she said. “The vision of the organization is a world where everybody has a decent place to live.” The organization opened a Habitat for Humanity Restore in 2014 to help with additional funding, grew its relationship with AmeriCorps to supplement the organization’s workforce and increased the opportunities for volunteers to get involved, McGeen said. Last year, more than 3,000 volunteers logged more than 15,000 volunteer hours of donated time with the Waukesha nonprofit. “We cannot do this alone,” she said. “This community has some incredibly gifted, talented
Karl Fechner, Paul Roeber and Diane McGeen and generous people who graciously give of their time.” This year, the organization will build six houses in Waukesha County, and has also expanded its repair and revitalization efforts, which assist families who already own homes with making necessary repairs and improving efficiencies so they can afford to stay in their homes. According to McGeen, what makes the organization unique is the community involvement in these projects. The future homeown-
ers put in a lot of sweat equity, but so do volunteers, neighbors and other members of the community. Everyone is working toward the same goal – to better the communities we live in, McGeen said. “Habitat for Humanity is one of the most known, loved and trusted social service agencies in the country,” she said. “We want to continue to leverage that brand in order to grow Habitat for Humanity Waukesha and really, truly make a difference in Waukesha County.”
Congratulations! from the strategic partners behind
Habitat for Humanity of Waukesha County Inc. Congratulations to Habitat for Humanity of Waukesha on your Community Distinction award. It is well deserved!
Call for Nominations! BizTimes Media presents the third annual awards program to salute southeastern Wisconsin’s best corporate citizens and most effective nonprofit organizations. The awards will shine a light on excellence in philanthropy and nonprofit leadership. The recipients of the awards will be saluted at a breakfast program on November 3rd, 2016. Nominate the people and for-profit organizations who are making a positive difference in the community by donating their time, talent and treasure. Nominate the nonprofit organizations that are making the region a better place to live, work and play. Self-nominations also are encouraged!
TOWN BANK
Nominate Today! www.biztimes.com/npawards 2 62 . 367. 1900 • W W W. TO W NBA N K. US
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strategies
The power of the Big Hairy Audacious Goal Don’t be afraid to reach for the stars
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’m inspired to write this because of Elon Musk and his incredible team at SpaceX. SpaceX, founded by Musk, accomplished an incredible feat for the second time recently: the successful landing of the first stage of the Falcon 9 rocket on a floating platform in the sea, allowing it to be reused. It’s a significant milestone in the history of a space program in the United States. (Note that I did not say the U.S. space program.) Not bad for a startup that was founded in 2002 by a guy who was fired from the first two companies he founded. Ashlee Vance wrote the excellent biography, “Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future,” published by Ecco in May 2015. Vance revealed Musk’s Big Hairy Audacious Goal (BHAG): “To enable human exploration and settlement of Mars.” In the book, Musk’s last words are, “I hope someday to die on Mars, only not on impact.” Most of the time when I relay this to my business friends, they look at me as if I am as crazy as Musk himself. But you only have to look at the accomplishments of the SpaceX team to know that we’re not crazy. In fact, Musk has been more success-
ful at hiring aerospace engineers from the top West Coast universities than any of his competitors. The majority of the engineers who were interviewed for the book believe someday we will colonize Mars. But what’s really important is that all the steps along the way – the successful space launches, the spectacular explosions and becoming the largest civilian satellite launch company in the world – are simply following the path toward the Big Hairy Audacious Goal. That term is attributed to James Collins and Jerry Porras, from their 1994 book “Built to Last: Successful Habits of Visionary Companies.” Typically, an organization uncovers or discovers its goal. By definition, it needs to be BIG. It should be at least 10 years into the future. And it should cause members of the team to say “Huh?!” Even before the acronym BHAG was popular, we saw many outstanding examples of it. Famous BHAGs: “This nation should commit itself to achieving the goal, before this decade is out, of landing a man on the moon and returning him safely to the Earth.” - John F. Kennedy, 1960. “A computer on every desk and in evw w w.biztimes.com
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ery home.” - Bill Gates, 1975. “Become a $125 billion company by year 2000.” – Walmart’s Sam Walton, 1990. Big Hairy Audacious Goals aren’t just for large companies. I do strategic planning and coaching with a group of young, local filmmakers in Milwaukee. They’re some of my favorite clients. Most of our coaching sessions involve a lot of swearing, arguing and laughing. In our second session, we uncovered their BHAG, one of the best I’ve heard: “Within 10 years, we will be the first filmmaking company in history to win a Cannes Lion (for advertising) and a Cannes Golden Palm (best film).” Once we nailed the goal, it totally transformed their immediate goals and priorities. Interestingly enough, when I work with business owners and executive teams, one of the toughest challenges I have is getting them to set a BHAG that’s big enough. Often, CEOs are afraid to set goals they might not be able to achieve. They don’t want to appear foolish. I find this fear of failure and unwillingness to be vulnerable to be very common and a terrible handicap. Leadership is all about setting stretch
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JO H N H OW M A N LEADERSHIP goals. And the one thing I find in common with every organization I work with is the team is looking for strong visionary leadership. I’ve written about how failure is a growth experience. But BHAGs aren’t about failure. They’re about creating an envisioned future. While your organization may not be about colonizing Mars, I’m sure there’s a Big Hairy Audacious Goal that will inspire you and help direct your team to the next level. n John Howman is a TEC chair. He is also chief executive officer of Milwaukee-based Allied Consulting Group LLC (alliedcg.com). Allied helps mid-sized companies throughout the U.S. grow, and offers CFO roundtables and executive and company assessments.
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strategies Another form of demonstration, it also allows you to show the happy results one gets using your product. The logic: understanding how it makes your life better leads to a sale. 5. Unique Selling Proposition A tag line or critter that embodies the brand message. “Nothing Runs Like a Deere” embodies the primary benefit: dependability. The Marlboro Man embodies the maverick image of the smoker. Jolly Green Giant, Charlie the Tuna and the Keebler Elves all add a little fun and create memorable icons that embody the brand image. The logic: the USP symbolizes the brand’s primary benefit and conveys it succinctly.
Bring out the WOW in You
Tone
The simple process to create powerful advertisements and sell more product
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he “Mad Men” era produced two giants of advertising with completely different philosophies: • Leo Burnett: “Use logic and reason to convince buyers of the value of your product.” • Bill Bernbach: “Advertising must connect on an emotional level.” Today, marketers recognize the value of both a logical approach and the emotional connection necessary to persuade. Good advertising – whether online, on paper or on the air – can be created using a simple three-step process: 1. Primary benefit 2. Appeal 3. Tone First, find the inherent value, the point of differentiation, the primary reason a customer should want your product. Among academics, this is called the augmented benefit.
The augmented benefit For instance, you buy shampoo. You put down your money and the clerk gives you a plastic bottle containing a viscous liquid. But you don’t buy it because of the pretty bottle and the colorful liquid. You don’t buy the core benefit either: it gets your hair clean. But any shampoo will get your hair clean. The augmented benefit is the reason you buy the shampoo. You choose it 46
because it controls dandruff, cures split ends, tames flyaway hair or whatever. Airline tickets, architectural drawings or electronic circuit boards – it doesn’t matter. The augmented benefit is the primary reason your customer buys your product. Not for the pretty package. Not because it does what every other product in its category does. No, your customer buys your product for the augmented benefit. Frequently, the augmented benefit is expressed in terms of quality, service or price. »» Quality includes strength, dependability and features (e.g., a variety of colors or sizes). »» Service could include speed, convenience, warranty or return policies. »» Price means you are the low-cost leader, or you offer the best credit terms or discount rates.
The five appeals Once you have determined what your product’s augmented benefit is, you next need to find the logical appeal (Leo Burnett) that will convince buyers to choose your product over your competitors.’ There are five ways to appeal to your customer: 1. Testimonial It’s the second-best form of advertising (after word-of-mouth). The B i zT i m e s M i l w a u k e e
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ROBERT G REDE MARKETING
testimonial shows a customer just like you (or perhaps a celebrity you admire) endorsing the product. The logic: if it’s good enough for that person, it will be good enough for you, too. 2. Demonstration Often, demonstrating the product in action will convince the prospect of its efficacy. Even showing a slumbering couple on a mattress demonstrates the comfort of the product. The logic: you actually see how you could use it to satisfy your need. 3. Comparison Show your product’s benefits in direct comparison with the competition. But beware – naming the competitor, rather than simply labeling it “Brand X,” may cause a negative reaction from your customer. The logic: what better way to convince your customer your product is better than by showing it? 4. Slice of life Show your product in everyday use.
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An advertisement’s tone helps the company connect with customers on an emotional level (Bill Bernbach). The most common and most effective methods are staid, sex, fear and humor. »» A staid approach, sometimes called “teacher” or “talking head,” features a spokesperson or a doctor in a lab coat touting the benefits of the brand. »» Sex sells. Buy these slinky pumps and get the guy. Wear this cologne and get the girl. »» Fear is frequently used by security firms, insurance companies and car makers. “If you don’t buy this product, terrible things could happen!” »» Humor sells best. People prefer to buy from people they like. The easiest way to create humor is to exaggerate the primary benefit to the point of ridiculousness (Think: Jimmy John’s freaky fast service). You can tap your creative juices by following this simple strategy: Identify the primary benefit, choose the appeal that works best for your target audience, and make an emotional connection with the tone of your ad. We may not consider ourselves particularly creative. But by following this simple process, we can bring out the WOW inside us, create powerful advertisements and sell more product. n
Robert Grede, author of “Naked Marketing – The Bare Essentials,” is president of The Grede Co., which offers marketing and strategic planning consulting (www.robertgrede. com). He can be reached at rg@thegredecompany.com.
strategies
What is your mindset? Fixed or growth?
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early all of my coaching is via the phone, a format which works very well, I’m happy to say. Two other truisms: I care a lot about my clients and I learn a lot from my clients. Last week, a wise and successful client mentioned a book he liked, one I had not read. It is “Mindset: The New Psychology of Success,” by Carol S. Dweck. Dr. Dweck is one of the world’s leading researchers in the fields of developmental psychology, social psychology and personality. She is now a professor of psychology at Stanford. One of her previous books was named Book of the Year by the World Education Fellowship. Of course, I ordered the book and have read the whole thing. Actually, that is what I would like to share with you – the whole thing. Since that isn’t practical here, I will highlight some points she makes about
the view you adopt for yourself and how it profoundly affects how you lead your life. Dweck compares two mindsets, one the fixed mindset and one the growth mindset. She explains and exemplifies how these different mindsets shape our performance in business, in relationships, in raising children, in teaching and in coaching. If you operate out of a fixed mindset, you believe your qualities are carved in stone. You feel a need to prove yourself again and again. You might believe that your IQ tells the whole story of who you are. You look for confirmation continually, for validation of these fixed qualities. Being rejected instead of validated can be devastating. You want to attempt only those tasks at which you will shine. As Dr. Dweck says, you see your traits as simply the hand you’re dealt and have to live with, always trying to convince yourself and others that you have a royal flush when
JO G ORISSEN COACHING you’re secretly worried it’s a pair of tens. The growth mindset springs from the belief that your qualities are things you can cultivate through your efforts; that everyone can change and grow through application and experience. People with this mindset do not believe that anyone can be anything. But they do believe that a person’s true potential is unknowable, that we cannot know what can be accomplished with years of passion, hard work and training. (I kept thinking of my golf game while reading the book. I do think I’ve developed a growth mindset, which helps me to stick to it, especially when
it’s not going well – which is often.) Dr. Dweck’s chapter on business is rich with real-life examples of leaders who operate out of the fixed or growth mindset. She states studies show people with a fixed mindset do not admit and correct their deficiencies. They would rather lie than admit that they were wrong. CEOs in this mindset can create a time-limited picture of success, but in the long run will serve their own egos rather than the sustainable success of the organization. She recounts some stories from Jim Collins’ book, “Good to Great,” of leaders who led their companies into greatness. She describes each of these leaders as “not the larger-than-life, charismatic types who oozed ego and self-proclaimed talent. They were selfeffacing people who constantly asked questions and had the ability to confront the most brutal answers – that is, to look failures in the face, even their own, while maintaining faith that they would succeed in the end.” I expect you will recognize all the organizations she highlights and readily see the impact of a growth mindset versus a fixed mindset. The beliefs that nurture these mindsets are powerful, usually very deep-set and often hidden from awareness. The good news is they can be changed and Dr. Dweck’s last chapter illuminates how that can happen. You might examine some of your self-talk as well as some of your outloud talk to start identifying where your mind is set – fixed or growth? If it can help my golf game, how can you resist? n Jo Gorissen is a certified transition coach and a former Milwaukee-area resident. She can be reached at jgorissen1@gmail.com.
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biz connections CA L E NDAR
NONPROFIT DIRECTORY
The Metropolitan Milwaukee Association of Commerce will host Expert Series: Measuring the Change on Tuesday, June 28, from 7:30 to 9 a.m. at MMAC’s offices, 756 N. Milwaukee St., Suite 400, Milwaukee. Paul O’Keeffe, managing director at Accenture, specializes in organizational change and will discuss the tools that can help an organization measure change. Cost is $25 for members and $40 for non-members. For more information or to register, visit web.mmac.org/ events.
SPOTLIGHT
The Midwest Association of Rail Shippers will host its 2016 Summer Meeting at Grand Geneva Resort & Spa in Lake Geneva on July 11 and 12. The event will offer rail shipping executives valuable information and insights on the changes in the freight rail industry and networking with peers. There is also an associated golf outing. Meeting cost is $190 for members and $215 for nonmembers. For more information or to register, visit www.mwrailshippers.com. The Waukesha County Workforce Development Center will host From the Desk of a Hacker: 5 Ways Businesses Could Stop Me on Wednesday, July 20, from 8 to 9:30 a.m. at the center, 892 Main St. in Pewaukee. Jason Lang, senior information assurance consultant at SynerComm Inc., will discuss the most common ways businesses are compromised and what can be done to stop or slow down cybersecurity threats. Cost is $15 and includes a continental breakfast. For more information or to register, visit www.biztimes.com/events/#all-events. The Waukesha County Business Alliance will host One-on-One with Public Officials on Friday, July 22, from 7:30 to 8:30 a.m. at its offices, 2717 N. Grandview Blvd., Suite 300, Waukesha. The program, which is free to members, is an informal meeting between Waukesha County elected officials and professionals over coffee. Mark Hogan, chief executive See the complete calendar of officer of the Wisconsin Economic Development Corp., upcoming events & meetings. will be among the attendees. For more information, visit www.waukesha.org/events. www.biztimes.com
BIZ NO T ES S.C. Johnson & Son and Kohler Co. Racine-based S.C. Johnson & Son and Kohlerbased Kohler Co. have been named among Fortune magazine’s 25 Most Important Private Companies. The list recognizes the contributions of corporations that choose to remain private, ranked by revenues or assets, social currency, connection to our daily lives and disruptive impact. It was released in conjunction with the Fortune 500, which recognizes the country’s largest public companies. S.C. Johnson (No. 18) makes household products like Windex, Off! and Ziploc bags. It was recognized for its astute marketing and ethical moves, such as its calls for stricter chemical regulations and its efforts to combat Zika. Kohler came in at No. 22, with a nod to its massive sales and its influence on home design, as well as its growing market share in China.
General Mitchell International Airport Milwaukee’s General Mitchell International Airport has earned a Recognition Award from the Wisconsin Partners for Clean Air for its continuous air quality improvement efforts across airport operations. Among the factors listed were its electric vehicle charging stations, fuelefficient parking shuttles, LED lighting in the terminal, better monitoring of energy usage and ongoing HVAC upgrades. Its recently renovated
baggage claim area also has a green roof, energy conservation technologies and automatic lighting controls with occupancy sensors.
Bradley Corp. Milwaukee-based The Good Jobs has named Menomonee Falls-based Bradley Corp. a Good Jobs Company. Bradley manufactures commercial plumbing and industrial safety products. The Good Jobs, which aims to help companies attract and retain talent based on culture, awards culture badges to companies to highlight amenities to potential employees. Bradley earned seven culture badges, for corporate responsibility, career development, inclusion, green DNA, extreme perks, flextime and fun.
WEC Energy Group Gale Klappa, outgoing chief executive officer at Milwaukee-based WEC Energy Group, has been named CEO of the Year 2016-Electricity and Natural Gas Industry by Business Worldwide Magazine. Klappa has led WEC and its predecessor, Wisconsin Energy Corp., for more than 10 years and oversaw the $9 billion acquisition of Integrys Energy Group in 2015. He retired in May. One of the factors mentioned in the award was Klappa’s managerial style, in which staff were reviewed regularly to ensure they were espousing WEC’s core values each day, particularly good customer service.
To have your business briefs published in a future issue of BizTimes Milwaukee send announcements to briefs@biztimes.com.
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Impact100 Greater Milwaukee
P.O. Box 1061, Brookfield WI 53008 262-719-3694 | impact100mke.org Facebook: www.facebook.com/Impact100GreaterMilwaukee Year founded: 2015 (first granting year – 2016) Mission statement: Impact100 Greater Milwaukee is an organization of women who collectively award transformative grants that make a lasting impact on the community. Primary focus of your nonprofit organization: Impact100 Greater Milwaukee is the 28th Impact100 program in the United States and Australia and the first in Wisconsin. Wendy Steele founded the original organization in 2001 in Cincinnati, Ohio, because she believed “philanthropy should be a party with an open invitation for all to attend.” Collectively, more than $29 million has been donated to local charities by Impact100 organizations. The primary focus of Impact100 Greater Milwaukee is to support nonprofits in Greater Milwaukee (Milwaukee, Ozaukee, Washington and Waukesha counties) that have annual operating budgets between $300,000 and $5 million and are undertaking transformative programs or projects. As a collective philanthropy organization, each of Impact100 Greater Milwaukee’s 100 (or more) female members donates $1,100 and receives one vote to determine the winners of transformative $100,000 grants at the end of a competitive grant process. The number of members determines the number of $100,000 grants that can be awarded each year. Other focuses of your nonprofit organization: Educate members about the work being done by mid-size nonprofits in the Greater Milwaukee area; empower women to become philanthropic decisionmakers; ensure that 100 percent of membership dollars go directly into grants. Number of employees at this location: None – Impact100 Greater Milwaukee is an all- volunteer organization run by the board of directors. Key donors: Johnson Bank, presenting
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sponsor of the 2016 Annual Awards Celebration and Majic Productions, catalyst sponsor of the 2016 Annual Awards Celebration, as well as our 2015-’16 annual partners: Reinhart Boerner Van Deuren, Schenck and MPI Impact. Executive leadership: None. Board of directors: »» Co-presidents: Anne Trunzo and Cynthia Harris »» Vice president: Jamy Malatesta »» Secretary: Mary Therese Breger »» Treasurer: Sue Connor »» Governance: Amy Barnes »» Grants directors: Ann Homstad and Robin Martin »» Financial review director: Karin Gale »» Membership directors: Monica Hanley and Ann Pierson »» Communications directors: Brigid Miller, Lynn Sheka and Sarah Smith Pancheri »» Friends of Impact director: Ritika Bhatia Is your organization actively seeking board members? Yes. What roles are you looking to fill? Communication director, education and training director, committee chairs. Ways the business community can help your nonprofit: Become a partner of Impact100 Greater Milwaukee or sponsor the Annual Awards Celebration; refer female employees for membership. Matching grants from employers are accepted for membership and other donations. Key fundraising events: Membership recruitment events held every fall. Membership closes December 1, and the number of members determines the number of $100,000 grants that can be awarded. Impact100 Greater Milwaukee will host a Membership Kickoff event on September 29 featuring Wendy Steele, the founder of the Impact100 model. Visit our website for more information and to RSVP: http://impact100mke.org.
biz connections PER SO NNE L F I L E
Submit new hire and promotion announcements to www.biztimes.com/submit/the-bubbler
manufactures and installs premium grade architectural millwork and related interior finishes for corporate interiors, institutional, judicial, health care facilities, hotels, restaurants and casinos in the U.S. and Caribbean.
■ Architecture
Roepke Debrauske Korb + Associates, Milwaukee, has added Cody Roepke to its team of architectural designers, and Mark Debrauske, AIA, to its team of architects. Debrauske has worked for several years in the architecture industry. Roepke will support the mixed-use and multi-family studios.
■ Banking & Finance Ed Schaefer has been named president and chief executive officer of First Federal Bank. First Federal Bank of Wisconsin is a five-office financial institution headquartered in Waukesha with offices in Waukesha, Bay View and Brookfield and approximately $250 million in assets. For the past six-plus years, Schaefer has served as president and chief executive officer at Citizens Community Bancorp in Eau Claire. First Bank Financial Centre has promoted Laura Edwards to assistant vice president, commercial loan operations manager. Edwards began working at FBFC in 1993. She has held many positions over the past 23 years. It is her role as commercial loan operations manager that earned her promotion to AVP. BMO Harris Bank has hired Peter Burgelis as mortgage banker at the downtown North Water Street branch.
North Shore Bank, Brookfield, has named
Rebecca Reinhardt
assistant vice president of retirement program services. Reinhardt has more than 14 years of experience at North Shore Bank and has held a range of positions, including personal banker, branch manager and business relationship manager.
Ott Lambrecht Port Washington State Bank has promoted Michael Ott to the new position of business relationship banker in the bank’s commercial loan department. Additionally, Kelly Lambrecht was hired as the new residential mortgage loan originator at the bank. She joins the PWSB family with 12 years of experience, primarily at the former Ozaukee Bank and later, BMO Harris Bank. First Bank Financial Centre, Oconomowoc, has promoted Aaron Pearson to AVP, commercial lender. His specialty is owneroccupied commercial real estate, manufacturing, veterinarians and funeral homes.
Brooke Napiwocki has joined Grafton-based Crescendo Wealth Management as a Wealth Management Advisor. She brings 15 years of work experience in financial services, during which she has advised individuals, small businesses and institutions.
■ Building & Construction Greenfire Management Services LLC, Milwaukee has hired Jim Coats as senior project manager. Coats has more than two decades of experience in the construction industry. He spent six years working internationally as a project superintendent in Guam and founded his own construction company in 2009. Glenn Rieder Inc., Milwaukee, has promoted Colin Brown to project manager. Brown is currently managing three major projects for the company in Sheboygan; Boca Raton, Florida; and Biloxi, Mississippi. Glenn Rieder engineers,
Kastner
Wertz
Niemoeller The Sigma Group Inc., Milwaukee, has added several employees to its team. Combined, the group has nearly 70 years of industry experience. New hires include: John Kastner, Schwingle project manager; Jeffrey Wertz, survey technician; Philip Beuscher, field construction inspector; and Richard Niemoeller and Shannon Schwingle, project engineers.
code, business formations, loan workouts and commercial leasing.
■ Manufacturing Grafton-based Kapco Inc. has hired a new sales leader for its customer-facing organization. Mike Kenny has joined the company and will oversee a team managing Kapco’s diverse customer base of 200+ companies. Kenny and his team will focus on new business development, identifying new customer relationships, strengthening existing customer relationships and creating win-win solutions to customers’ business problems.
Beuscher
■ Insurance Cathy Large joined Robertson Ryan & Associates, Milwaukee, as a commercial customer service representative in the firm’s Mequon office. She previously worked at Ansay & Associates as an account executive.
Briese
Gaydos Powerbrace Corp., Kenosha, has promoted several of its employees. They include: Eric Briese, director of operations; Christopher Gaydos, director of engineering; and Senn Brian Senn, director of business development.
■ Nonprofit
M. Thomas
C. Thomas
■ Legal Services Justin Mertz has joined Michael Best & Friedrich LLP, Milwaukee, as an attorney in the firm’s transactional practice group. Prior to joining Michael Best, Mertz practiced in the Milwaukee-area offices of two business law firms. His specialty of Chapter 11 work also included a focus on real estate matters, including 363 sales under the bankruptcy
Copeland-Gonsalves Wysocki Girl Scouts of Wisconsin Southeast has named several area professionals to its board of directors. They include: Mark Thomas, ............ PERSONNEL FILE continued on page 50
biz connections SB A L O AN S The U.S. Small Business Administration approved the following loan guarantees in May:
Jefferson County A-1 Creative Acquisition LLC, 400 Industrial Blvd., Palmyra, $350,000; A-1 Creative Acquisition LLC, 400 Industrial Boulevard, Palmyra, $2.5 million; Lakeside Construction LLC, N8190 Highway 89, Waterloo, $50,000; Lakeside Construction LLC, N8190 Highway 89, Waterloo, $125,000;
Kenosha County Buttons & Bolts Fabric & Quilting Supply, 75th St., Salem, $68,000; Can Am Imports Inc., 11506 Ridgewood Lane, Kenosha, $225,000; Custom Carpentry Inc., 11601 Bristol Road, Bristol, $27,000; Pro-Tech Sales Inc., 6201 Seventh St, Kenosha, $58,000; R’Noggin Brewing LLC, 120th Ave., Kenosha, $120,000; The Retro Cafe LLC, 75th St., Kenosha, $21,000; The Waves Bar & Grill LLC, 60th St., Kenosha, $50,000;
Milwaukee County Bharat Enterprise Inc., 1556 N. Farwell Ave., Milwaukee, $120,000;
Bloom Companies LLC, 10501 W. Research Drive, Milwaukee, $500,000; Bloom Companies LLC, 10501 W. Research Drive, Milwaukee, $2.5 million; Confluence Graphics Inc., 265 E. Hampton Ave., Milwaukee, $30,000; Custom Print & Stitch LLC, 2025 E. Norse Ave., Cudahy, $412,000; George Watts & Son, 761 N. Jefferson St., Milwaukee, $40,000; GeoTest Inc., 2135 S. 116th St., West Allis, $42,800; Karam Soft LLC, 210 E. Oak Street, Oak Creek, $45,000; Lake Effect Sports LLC, 1916-1926 E. Capitol Drive, Shorewood, $90,000; Lake Effect Sports LLC, 1916-1926 E. Capitol Drive, Shorewood, $10,000; Luna Acupuncture and Birth Services LLC, 2120 E. Rusk Ave., Milwaukee, $61,000; Lupton Consulting LLC, 6015 W. Forest Home Ave., Milwaukee, $76,000; Mor Foods LLC, West State St., Milwaukee, $50,000; Piedmont Property Corp., 2461-2463 S. St. Clair St., Milwaukee, $456,000; PowerCycle LLC, Harwood Avenue, Wauwatosa, $150,000.00; Salima Petro Inc., West National Avenue, Milwaukee, $1.75 million;
Sonflower LLC, East Silver Spring Drive, Whitefish Bay, $150,000; Temple Control Systems Inc., 3466 S. 13th St., Milwaukee, $285,000; Yangzi LLC, 2428 Murray Ave., Milwaukee, $30,000;
Ozaukee County Vertz Marketing LLC, 10505 N. Port Washington Road, Mequon, $150,000;
Racine County HR Value Partners LLC, 422 Main St., Suite 202, Racine, $100,000; J Harris Trucking LLC, 2040 5 1/2 Mile Road, Racine, $240,000; NorthSouth Miracles Inc., West Loomis Road, Waterford, $512,000; Satguru LLC, 9725 Northwestern Ave., Hwy K, Franksville, $655,000; Underground Power Corp., 4451 Hwy 41, Franksville, $100,000;
Sheboygan County Ballistic Performance Components LLC, 1404 Pilgrim Road, Plymouth, $3.14 million; Ballistic Performance Components LLC, 1404 Pilgrim Road, Plymouth, $1.35 million; In-N-Out Storage LLC, 423 E. Clifford St., Plymouth, $463,800; Semicolon Inc., 2829 Eastern Ave., Plymouth, $75,000;
PER SO NNE L F I L E PERSONNEL FILE........................ from page 49 vice president and chief operating officer at Sojourner Family Peace Center; Cynthia Thomas, co-founder and chief executive officer at Translator;
Deirdra Copeland-
Krehbiel Gonsalves, global head of enterprise resource group at BMO Financial Group; Sandy Wysocki, chief development officer at the United Performing Arts Fund; and Karla Krehbiel, regional president at Johnson Bank.
Public Relations ■ & Marketing Milwaukee-based Ascedia has added
Cortney Heimerl to its marketing services team. As an interactive marketing specialist, Heimerl develops and
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executes high-level digital marketing strategy for clients in tourism, manufacturing, education and health care. With an emphasis on data analysis and reporting, she provides insight and guidance to drive results. Advertising veteran Dan Fietsam has joined Milwaukeebased Laughlin Constable as its chief creative officer. He will lead creative across all of LC’s offices. Most recently, Fietsam has led his own creative consultancy, The Fietsam Group, while also teaching in the graduate program at Northwestern University’s Medill School of Journalism, Media and Integrated Communications.
■ Technology CCB Technology, Racine, has named Jacob Turowski its new director of services to help expand the delivery of CCB’s professional IT services. He joined the CCB IT services team B i zT i m e s M i l w a u k e e
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in 2014 as a systems engineer. He has more than seven years of experience in IT, an extensive background in virtualization and holds technical Turowski certifications with Microsoft, VMWare, Cisco, WatchGuard and other industry-leading companies.
■ Wireless U.S. Cellular has named John Heimsch director of sales for its corporateowned channel in Wisconsin and northern Illinois. In this role, he will oversee sales at the wireless carrier’s 49 corporate-owned locations throughout Wisconsin and northern Illinois. He will be based at U.S. Cellular’s Customer Care Center in Waukesha.
June 27 - July 10, 2016
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Urbane Hospitality LLC, 1231 N. Eighth St., Sheboygan, $280,000; Ziaja Maching Corp., 1700 Sunset Drive, Plymouth, $1.34 million;
Walworth County GL Healthcare LLC, W6302 Bluff Road, Whitewater, $150,000;
Washington County A&N Contracting LLC, 637 Morgan Drive, Hartford, $30,000; Clearshot Manufacturing LLC, 3212 Squire Lane, West Bend, $280,000; Spaulding Clinical Research LLC, 525 S. Silverbrook Drive, West Bend, $3.85 million; Wedal Wellness Group Inc., N108 W14818 Bel Aire Lane, Germantown, $150,000;
Waukesha County Anna’s Rockers LLC, 2798 Heritage Drive, Delafield, $65,000; Forever Lazy LLC, 2316 S. Commerce Drive, New Berlin, $175,000; Genco Industries Inc., 209 Wilmont Drive, Waukesha, $205,000; Good To Go Quick Mart Inc., N88 W15167 Main St., Menomonee Falls, $95,000; H2D Motorcycle Ventures LLC, 1925 S. Moorland Road, New Berlin, $2.04 million; Into3D LLC, W233 N7768, Sussex, $25,000; Loft Financial Advisory Group, 20855 Watertown Road, Suite 210, Waukesha, $350,000; Miller Pharmacy Inc., North Rochester St., Mukwonago, $390,000; MJ Acquisitions LLC, 38322 Delafield Road, Oconomowoc, $700,000; MJ Acquisitions LLC, 38322 Delafield Road, Oconomowoc, $30,000; Ocreative Design Studio LLC, 301 Pawling Ave., Hartland, $301,500; Papa Bear Pizza Co., 1220 S. Prairie Ave., Waukesha, $285,000; Paul’s Carpet & Furniture Cleaning LLC, W379 N7458 State Road 67, Oconomowoc, $50,000; Remedy Now LLC, 4305 N. Brookfield Road, Brookfield, $225,000; Rosati’s Partners LLC, N81 W15066-N80 W14910 Applet, Menomonee Falls, $270,000; Secure Information Destruction LLC, S84 W19762 Loveland Court, Muskego, $285,500; SKMLS Properties LLC, 1035 Cecelia Drive, Pewaukee, $819,000; Starz Dance Academy LLC, W195 S6610 Racine Ave., Muskego, $1.46 million; The Specific Chiropractor Center, 557 Cottonwood Ave., Hartland, $32,900; Trifecta Access Controls LLC, 330 Zion St., Hartland, $40,000; Xcel Manufacturing LLC, W226 N781 Eastmound Drive, Waukesha, $150,000
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n GLANCE AT YESTERYEAR VOLUME 22, NUMBER 7 JUNE 27 - JULY 10, 2016 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 DIRECTOR OF STRATEGIC INITIATIVES
Jon Anne Willow jonanne.willow@biztimes.com ADMINISTRATIVE ASSISTANT
Sarah Sinsky sarah.sinsky@biztimes.com
EDITORIAL EDITOR
Andrew Weiland andrew.weiland@biztimes.com MANAGING EDITOR
Molly Dill molly.dill@biztimes.com REPORTER
Corrinne Hess corri.hess@biztimes.com REPORTER
Arthur Thomas arthur.thomas@biztimes.com REPORTER
Ben Stanley ben.stanley@biztimes.com
SALES & MARKETING DIRECTOR OF SALES
Linda Crawford linda.crawford@biztimes.com BUSINESS DEVELOPMENT EXECUTIVE
Maribeth Lynch mb.lynch@biztimes.com SENIOR ACCOUNT EXECUTIVE
Amber Stancer amber.stancer@biztimes.com ACCOUNT EXECUTIVE
Kevin Gaschk kevin.gaschk@biztimes.com ACCOUNT EXECUTIVE
Maggie Pinnt maggie.pinnt@biztimes.com ACCOUNT EXECUTIVE
Christie Ubl christie.ubl@biztimes.com
PRODUCTION & DESIGN GRAPHIC DESIGNER
Alex Schneider alex.schneider@biztimes.com ART DIRECTOR
Shelly Tabor shelly.tabor@biztimes.com
INTERN REPORTER
Street sprinkler
Maredithe Meyer maredithe.meyer@biztimes.com
This photo, taken Sept. 8, 1937, shows a street sprinkler from the Milwaukee Department of Public Works spraying the street and some children as part of the Milwaukee Government Service League’s Health Week. In the background is automotive battery manufacturer Globe-Union Inc., which merged with Johnson Controls Inc. in 1978. — This photo is from the Milwaukee Public Museum’s Photo Archives collection. Additional images can be viewed online at www.mpm.edu.
Independent & Locally Owned — Founded 1995 —
COMME NTA R Y
Another big building project for Milwaukee
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TROY FREUND PHOTOGRAPHY
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ith cranes towering over numerous construction sites in the Milwaukee area, it is hard to believe yet another major project is being planned in the city. But Summerfest chief executive officer and president Don Smiley recently told BizTimes Milwaukee reporter Ben Stanley that Milwaukee World Festival Inc. is working on plans to replace the Marcus Amphitheater at Henry Maier Festival Park. “That’s definitely in the future of this festival, to have a new amphitheater,” Smiley said. “It needs to be rebuilt.” Read more of the inside story on the business of Summerfest in the cover story of this issue of BizTimes Milwaukee. Although Smiley did not disclose any details about the plans to replace the Marcus Amphitheater, the fact that Summerfest leaders are considering this project is big news. The Marcus Amphitheater is the largest stage on the festival grounds and
The Marcus Amphitheater
seats 23,000, making it one of the largest venues in the state. It opened in 1987 and cost $12 million to build. That price tag is worth about $25 million in 2016 dollars, based on the U.S. Bureau of Labor Statistics inflation calculator. It’s a safe bet that a replacement for the Marcus Amphitheater would cost at least that much, and probably more for an improved facility with additional amenities. Milwaukee World Festival Inc., which B i zT i m e s M i l w a u k e e
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runs Summerfest, has done a great job of enhancing the festival grounds over the years and has proven it can get big projects done. A two-phase, $35 million construction project from 2010 to 2012 created a new South Gate, rebuilt the Briggs & Stratton Big Backyard Stage and built the BMO Harris Pavilion stage. A corporate sponsorship will be key to rebuilding the Amphitheater. This project is a huge opportunity
June 27 - July 10, 2016
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ANDREW WEILAND Editor BizTimes Milwaukee
to add another major new landmark to Milwaukee. Whenever it decides to move forward with the project, Milwaukee World Festival needs to replace the Amphitheater with a similar-sized venue that enhances the spectator experience with more amenities and upgrades to the concessions and bathroom facilities. The project will be a grand slam if it also provides an enhanced view of the downtown skyline and becomes a signature piece of lakefront architecture. Milwaukee-based Eppstein Uhen Architects designed the recent improvements to the festival grounds, so it’s a good bet it will design the new Amphitheater. Whichever design firm is selected, hopefully it brings its A game and creates something special for the community. n
biz connections
BIZTIMES AROUND TOWN n
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Catch a Drink happy hour Gorman & Co. hosted a Catch a Drink happy hour event with Wisconsin Commercial Real Estate Women to showcase Gorman’s new Fredrick Lofts in the historic Pabst Brewery complex. Event attendees enjoyed refreshments while networking and taking guided tours of the building’s features. 1
Laura Narduzzi and Lori Simonson, both of Gorman & Co.
2 Heather Nelson of Spring Bank, Connie Roethel of GIBB Building Maintenance and Lisa Braun of Zilber Property Group.
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3 Renee Dickerson of Gorman & Co., Shari Engstrom of Sid Grinker Restoration and Kelly Brophy of Gorman & Co.
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4 Stacy Oszuscik of The Sigma Group, Dave Taylor of Wisconsin Title and Beth Rummel, president of WCREW. 5 Alexandra Goldman of Sattell Johnson and Appel & Co., Sherry Saiki of Securant Bank, Nicole Allard of RFP Commercial and Chris Felton of Sattell Johnson and Appel & Co. 6-8 A look inside one of the building’s “live-work lofts,” 696-square-foot units with both work and living space. 9 Networking at Catch a Drink. Photos by Maredithe Meyer
You can see these photos and other business people in the news by clicking Multimedia on the navigation bar at …
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June 27 - July 10, 2016
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B i zT i m e s M i l w a u k e e
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ERICH SCHROEDER PHOTOGRAPHY
the last word
Surround yourself with great people Bryan Mullett Bryan Mullett is president and chief executive officer of Menomonee Falls-based Bradley Corp., a manufacturer of commercial washroom and safety products. Creating a family culture is as important as other benefits of investing in people, he says. “As I reflect on Bradley Corp.’s 95 years as a familyowned business, there’s a common thread that tightly weaves all of our years together: our employees. Every employee is a family member. “My philosophy on creating a family atmosphere stems from hiring good people and then trusting them to execute. It’s nearly impossible to successfully lead a company on your own, regardless of IQ or age. A company with the best products, services or technology will not 54
thrive if its employees are disengaged from the mission, vision and values of the leadership. It’s essential to enlist smart, committed problem solvers who share the company’s vision and then trust them to do their jobs. “The three key ingredients to look for in employees are: personality/character; strengths appropriate for the position; and culture fit. Nothing outweighs personality. While having the right skillset is important, the fact is skills can be acquired but personalities cannot. “A diverse mix of personalities, skills and backgrounds will season – and solidify – a company’s culture, innovation and growth. The cumulative effect of different perspectives and unforeseen ideas will strengthen the business and drive it into unchartered territory. Work hard at being a good listener. Listen to their counsel.
B i zT i m e s M i l w a u k e e
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President and chief executive officer Bradley Corp. W142 N9101 Fountain Blvd., Menomonee Falls Industry: Commercial plumbing manufacturer Employees: 550 (majority in Wisconsin) www.bradleycorp.com
This will make your company great. “As Lee Iacocca once said: ‘I hire people brighter than me and I get out of their way.’ “While the ultimate payback of empowering employees is increased performance, productivity, morale, engagement and retention, creating an everlasting family bond is just as meaningful to me.” n
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SPONSORED REPORT
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From From technical la c i n h c et m o rF .w orr om ot r of ecr of kr o w workforce for tomorrow. technical Incorporate a succession strategy development plan artskills sand nofundamentals iand ssefundamentals ccus a to etleadership arotopleadership rocnI development nalp plan tnempoleved ygetskills p i h sIncorporate r e d a e l ot s l atn eamsuccession adnuf dn a s l l i kstrategy s edevelopment ht dndevelopment oyeb sdnand etxeexecutive gninexecutive nalp coaching, noisscoaching, eccuS - l e v e dGreat e eGreat y oorganizations l p morganizations e w e i v s n oview i t a zview iemployee n a g remployee o t a e rdevelG devel, gSuccession n iSuccession h c a o c e v iplanning tucplanning ex e dnextends a extends tn embeyond p o lbeyond ev edthethe and level of the C-suite. Include any member of opment as an integral part of the stratewe provide solutions to your company’s fo rebmewe m yprovide na edulcsolutions nI .etius-Cto eyour ht fo company’s level - eoft a r t s opment e h t f o t ras a p an l a r gintegral e t n i n a part s a t nof e mthe p o strates’ y n a plevel m o c ofr uthe o y oC-suite. t sn o itu lInclude os ed i voany rp emember w development organization noitunique utitsunique ni ychallenges ek schallenges dloh ohinwtalent noinitatalent zmanagement. inagrmanagement. o ruoy g n i rgic u d gic splan n i gplan eand b t nand e m pdevelopment o l e v e d d nbegins a nbegins a l pduring c i g during . t nemyour e gyour a norganization am t n e l at n iwho s ewho gnholds e lholds l ahkey c ekey uinstitution q ininstitution u
optimizing , m a e tFor rFor u omore y more f o einformation c ninformation a m r o f r e pon e hon t goptimizing n i z i m i t pthe o nthe operformance n operformance i t a m r o f n iofe ryour oof m your rteam, o F team, contact CBPS at 262-695-7828 or cbps.info@wctc.edu. . u d e . c t ccontact w @ o f n iCBPS . s p b c at r o262-695-7828 8 2 8 7 - 5 9 6 - 2 6 2or t a cbps.info@wctc.edu. SPBC tcatnoc
PUBLICATION DATE
AUGUST 22, 2016
P R O U D LY P R E S E N T S
RESERVATION DEADLINE
JULY 15, 2016
FamilyBIZ WISCONSIN
A N N U A L
P U B L I C A T I O N
FOCUSING ON WISCONSIN’S FAMILY & CLOSELY HELD BUSINESSES There are more than 10 million family and closely held businesses in the U.S., from “mom and pop” shops to Fortune 500 companies. Their economic influence is enormous, producing an estimated 50 percent of the nation’s GDP and paying 65 percent of all wages. Wisconsin FamilyBiz will cover the issues facing those businesses, offering advice and strategies, along with “been there, done that” stories from business owners throughout the state. Organized into chapters focusing on Family Dynamics, Leadership, Legacy, Succession and Estate Planning, Wisconsin FamilyBiz delves into five key aspects of every family business. With distribution in metro Milwaukee, Green Bay, the Fox Valley and Madison, make this publication an important part of your marketing strategy and reach the decision-makers in the companies that are driving our state’s economy forward.
For advertising and sponsorship opportunities contact Linda Crawford at (414) 336-7112 or advertise@biztimes.com