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Congratulation to the 2022 Future 50 Winners. The Future 50 program recognizes fast growing privately-owned companies in southeastern Wisconsin that have been in business for at least three years and have shown significant revenue and employment growth.

2022 Future 50 Winners: Abby Windows & Exteriors American Construction Services, Inc. Approyo Inc. Best Version Media Bevco Engineering Company Biocut Systems Bliffert Lumber & Hardware Business Development Pros Central Office Systems Central Standard Craft Distillery Communications, Cabling & Networking - CC&N Doral Corporation Duffek Construction Eggers Imprints Empower Electric Fusion Recruiters, LLC Golden Path Home Care, Inc. Husco International InCheck James Imaging Systems Johnson and Sons Paving Kahler Slater Krueger Communications Inc. Lakeland Supply Inc. Lauber Business Partners, Inc.

LePoidevin Marketing Luther Group LLC M.E. Dey & Co., Inc. Macromatic Industrial Controls MARS Solutions Group Midwest Precision Molding MilwaukeeWarehouse Moore Construction Services, LLC Munson, Inc. PartsBadger Pattyn North America Peabody's Interiors QPS Employment Group Riverwater Partners Robertson Ryan & Associates Rocket Clicks Royal Basket Trucks, Inc. SRH The Kriete Group UBUNTU Research & Evaluation Vizance Vyron Wixon, Inc. Wolter, Inc. Z.T. Distribution, Inc.

Future 50 Awards Luncheon Thursday, September 29, 2022 11:30 AM - 1:30 PM Italian Community Center

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2022 MID-YEAR ECONOMIC REPORT

INFLATION RAI$ES RECES$ION FEARS AN INTERVIEW WITH MILWAUKEE’S LATEST JAMES BEARD AWARD-WINNING CHEF 8 MEET THE NOTABLE CFOS 42

COMMENTARY: KOHL’S STORE OFFERS CHANCE TO REVITALIZE DOWNTOWN RETAIL 52

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5 Leading Edge

5 NOW

BY THE NUMBERS

6 IN FOCUS – Storm the Bastille 7 BIZ LUNCH – Lupi & Iris

8 Biz News 8 T HE INTERVIEW – Dane Baldwin

of The Diplomat

10 JUMP START – PrintFoam

12 Real Estate

COVER STORY

14

42 Notable CFOs

Inflation raises recession fears MID -Y E A R E C O N O MI C RE P O R T

48 Strategies 48 ECONOMY Joe Galvin

Special Reports

52 Biz Connections 52 GLANCE AT YESTERYEAR

14 Mid-Year Economic Report

A comprehensive look at the local and national economy at mid-year, including an interview with economist Michael Knetter and reports on interest rates, supply chain issues, consumer behavior and the office real estate market.

COMMENTARY

53 NONPROFIT 54 5 MINUTES WITH… Jim Sajdak

of Stan’s Fit For Your Feet

28 Data Security & Technology

Coverage includes a report about the need for business to have cyber security measures in place in order to have cyber security insurance coverage.

36 Diversity in Business

Coverage includes reports about measuring diversity and inclusion progress; a Wisconsin LGBT Chamber job search program; and efforts to provide venture capital funding for minority-owned businesses, and to award more government construction projects to minority-owned contractors.

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BizTimes Milwaukee (ISSN 1095-936X & USPS # 017813) Volume 28, Number 7, July 25, 2022 – August 21, 2022. BizTimes Milwaukee is published bi-weekly, except monthly in January, February, March, July, August and December by BizTimes Media LLC at 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120, USA. Basic annual subscription rate is $96. Single copy price is $5. Back issues are $8 each. Periodicals postage paid at Milwaukee, WI and additional mailing offices. POSTMASTER: Send all UAA to CFS. NON-POSTAL AND MILITARY FACILITIES: Send address corrections to BizTimes Milwaukee, 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120. Entire contents copyright 2022 by BizTimes Media LLC. All rights reserved.

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» JUL 25 - AUG 21, 2022

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Contents

Leading Edge

BIZTIMES DAILY – The day’s most significant news → biztimes.com/subscribe

NOW

KOHL’S/ENGBERG ANDERSON ARCHITECTS

Rendering of Kohl’s groundfloor storefront in the Hub640 building.

Kohl’s to open store in downtown Milwaukee

By Maredithe Meyer, staff writer Kohl’s Corp. recently announced plans to open a new retail location in the former Boston Store space on West Wisconsin Avenue in downtown Milwaukee.

Opening in fall 2023 on the ground floor of the HUB640 building, the 40,000-square-foot store will feature a “highly localized” product assortment – think Milwaukee Bucks and Brewers

gear – and a “Sephora at Kohl’s” beauty shop.

It’s the first step into downtown Milwaukee for the Menomonee Falls-based national department store chain, which operates nearly 1,200 stores across the country, largely in suburban markets. The planned Milwaukee store, however, is one of 100 small-format locations Kohl’s is

BY THE NUMBERS Calypso, owned by Milwaukee-based King Juice Co., recently added

3,000

new outlets to its distribution network, including Walmart, Publix, Sheetz, H-E-B and Kroger locations.

rolling out over the next four to five years, in markets considered too small to support the typical 80,000-square-foot full-size Kohl’s store.

In announcing the move, Kohl’s chief executive officer Michelle Gass expressed confidence in the ongoing revitalization of West Wisconsin Avenue and the Westown neighborhood and explained why now is the time for the retailer to establish a downtown Milwaukee presence.

“I think it’s the perfect marriage of the efforts underway in the city of Milwaukee,” Gass said.

“The fact that we’re going to be here, and there’s a (planned) concert venue, and there’s a (planned) soccer field and all the great food and entertainment happening. …

This store is an example of what we’re going to be doing across the country, and I think it’s phenomenal.”

Gass said the company taps into data analytics to design the product mix for its small-format stores, focusing on “what’s available and what makes sense for a local community.” A new pilot store opening later this year in Tacoma, Washington will target the active lifestyle customer with an assortment of outdoor gear.

The plans for these smaller stores are part of Kohl’s current turnaround strategy, which company leadership has continued to defend amid activist investor

pressure earlier this year and a near sale of the company last month – all on top of ongoing retail industry disruption, especially in the wake of the pandemic.

The strategy includes growing its partnership with Sephora to a $2 billion line of business. Since fall, Sephora’s shop-in-shops have opened at 200 Kohl’s locations, with 400 more opening this year, for a total of 850 stores by 2023.

The Milwaukee location will be the 15th Milwaukee-area Kohl’s store to include a Sephora. That’s out of a total 20 store locations in southeastern Wisconsin.

HUB640 is the brand name for the former downtown Milwaukee Boston Store and Bon-Ton corporate headquarters building. The five-story, 298,000-square-foot building at 640 Vel R. Phillips Ave. was acquired by Chicago-based North Wells Capital in 2017 for $25 million. North Wells Capital has since made a number of improvements to the building.

Kohl’s downtown location is the latest development contributing to a resurgence of Milwaukee’s Westown neighborhood. Other notable Westown developments – recently completed or in the works – include Fiserv Forum and the Deer District, the Bradley Symphony Center, the expansion of the Wisconsin Center, The Avenue development, which includes 3rd Street Market Hall, and Milwaukee Tool’s new downtown office. n biztimes.com / 5

Leading Edge

@BIZTIMESMEDIA – Real-time news

inf cus

AS THE SUN SET ON JULY 14, the streets of downtown Milwaukee were abuzz with the sound of feet on pavement. On this night each year, thousands of people lace up their running shoes and jog through East Town and the Third Ward, in celebration of the Parisian revolutionaries who stormed the Bastille prison in 1789, sparking the French Revolution.

After a two-year hiatus amid the COVID-19 pandemic, Milwaukee’s Storm the Bastille 5K Run/Walk was back in-person this year, bringing an estimated 2,500 to 3,500 runners to kick off the city’s annual Bastille Days festival in Cathedral Square Park.

“We are beyond thrilled to have Bastille Days and Storm the Bastille back after two years of absence,” said Eddie Sturkey, interim executive director of the East Town Association.

With live entertainment, French cuisine and an international marketplace, this year’s four-day festival drew about 150,000 visitors to downtown Milwaukee. n — Maredithe Meyer 6 / BizTimes Milwaukee JULY 25, 2022

MAREDITHE MEYER

Storm the Bastille

1

BIZ LUNCH

Lunch

Biz

LUPI & IRIS WEBSITE: lupiandiris.com

CONTRIBUTED

2

A D D R E S S: 777 N. Van Buren St.

CUISINE: Mediterranean C H E F: Adam Siegel M O O D: Sophisticated and inviting PRICING: Lunch appetizers and salads, $15-18; Lunch entrees, $20-40 Downtown Milwaukee’s newest fine dining establishment Lupi & Iris debuted its weekday lunch menu earlier this month.

The concept by James Beard Award-winning chef Adam Siegel and local real estate developer Michael DeMichele opened in mid-May, bringing a Mediterranean-inspired, locally sourced menu, aesthetic design, and a must-try destination to the downtown dining scene.

Siegel’s approach to lunch is similar to dinner, with a pared-down menu and addition of a few entrée salads and sandwiches. With more business professionals returning to the office, requests for lunch service have been streaming in since before Lupi & Iris opened its doors, but staffing up to full operations has been a slow, challenging process.

“We know that there is a demand for more lunch spots in the downtown area,” said Seigel. “Staffing for lunch was and has not been easy. … That said, we have hired some incredible people and have a staff of about 100 employees in total. That is something we are very proud of.”

3

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The 84-seat dining room features a chef’s counter facing the expansive open-concept kitchen. Not pictured is the 18-seat horseshoe-shaped front bar and central walk-in wine vault that holds 2,000 bottles.

Grilled Lamb Chops pairs marinated Strauss Brands lamb with ratatouille, olive oil potatoes, and black olive and herb puree.

French String and Wax Bean Salad features steamed beans with prosciutto frisee, Niçoise olives, shallots, ricotta salata cheese and red wine vinaigrette. biztimes.com / 7

MAREDITHE MEYER

BizNews

the

Interview

LAST MONTH, Dane Baldwin became one of only five Milwaukee chefs to earn

what’s considered among the most prestigious national recognitions of culinary talent: a James Beard Award. The 40-year-old chef and owner of The Diplomat, a neighborhood restaurant serving modern-American cuisine on East Brady Street in Milwaukee, was named “Best Chef: Midwest,” putting him in a category with the likes of notable local chefs Sanford D’Amato, Adam Siegel, Paul Bartolotta and Justin Aprahamian, who was Milwaukee’s most recent Best Chef: Midwest awardee in 2014. BizTimes associate editor Maredithe Meyer caught up with Baldwin to discuss his latest achievement.

What does winning a James Beard Award mean to you and for The Diplomat?

“It means a great deal to me, and I know, (my wife) Anna, it means a great deal to her. My kids are walking around tall these days, as they usually do, but as to say they’re very proud. So, it’s fantastic to know – not in an effort to toot my own horn at all – that a lot of people who I’ve worked with have said, ‘You are one of the hardest-working guys that I’ve worked with.’ I do have a certain drive to just keep pushing forward, and 8 / BizTimes Milwaukee JULY 25, 2022

Dane Baldwin Chef and owner The Diplomat 815 E. Brady St., Milwaukee thediplomatmke.com

it makes you realize that to be recognized for something like this is such an honor, and you know how much work goes into it, there have been early mornings and late nights. And I don’t want that to be confused for a sense of burden at all because we’re entrepreneurs, so it takes a little bit of extra gumption to do anything we do anyway. But to know that it’s being recognized and well received by so many is such a great feeling, it really is.

“We’re seeing a lot of new faces in the restaurant – it’s so nice to have that kind of exposure. Obviously, we’re in the business of return visits,

so hopefully people will learn something new or find a new spot – that’s something we’ve experienced over time anyway, but maybe just a little bit more these days.”

How do you expect the James Beard title to impact business long term?

“There’s no doubt that it’s going to open doors to other opportunities, whether that means collaborations within the city or outside the city. What it means for The Diplomat is it shines a light on the things that obviously got us to this point, and we’ll look to continue to do those things. We’ve been improving since we opened the doors, and I suppose that this (award) would be a sign of that.

“I don’t necessarily set an expectation on ‘what does this mean?’ or ‘how can I use it to achieve X, Y or Z,’ but I think honestly, we’re just going to appreciate it and try to do our best to do it justice. It’s definitely something that is going to carry with us our whole career long. That’s how it works. It is such an honor, and we’ll see where the spotlight takes us.”

What’s kept you in Milwaukee your whole career?

“Well, at one point I had a plan to move to Chicago. But I had gotten a promotion at Carnevor, and it seemed like the right thing to do to stick it out. It was an opportunity for me to kind of see what I got, so to speak.

You know, my family is here. Chicago is not that far, but it felt right to stick around. I’ve really been able to be immersed in a career here in a city that has changed tremendously from the hospitality environment to the art world. I’m very happy that I made the decision to stay. I think I still got the curriculum that I needed here in the city, and everyone always says you get out of it what you put into it, and I think that’s true no matter where you are. Seattle, Chicago, San Fransisco or New York – those places are still there. We can go visit, we can still appreciate what they have to offer, but there’s something to be said for staying at home.”

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How have you seen Milwaukee’s dining scene evolve?

“There are more owner-operated restaurants now, and I think that the personality of a space is felt a bit more through that. … I think that that’s a big thing: the personality that a diner feels when they walk into the space is more aligned with the owner-operator. … I feel like there’s such a drive for concept, you know, ‘What’s your concept?’ That’s important because you want to be able to clearly express who you are. … I think that the personality behind the plate or what’s in the glass, people have more access to, it’s more closely related now than it was when I first started (my career).”

Tell me more about the concept behind The Diplomat and how it’s reflected in the menu.

“When we’re putting together dishes, first and foremost, it has to be something that we enjoy. There’s this thought that you cook what you like to eat, and I think that’s naturally true, but there have been times where I’ve had an idea, we’re going through the process and we put it on the plate, and we’re just like, ‘That’s not right.’ I think it’s really important to draw that line and say, ‘You know what? This is still in the works. We should definitely continue to work on this before we put it on the menu.’

“There’s a lot of wood shedding that goes on before you would see (the dish), and I think it’s really important that that be one of your (business) tenants – that what you’re presenting you’re very proud of.

And that’s being honest with oneself and saying, ‘I didn’t hit a home run this time, and I should probably wait.’ And by doing that, by having that check point, what makes it through is represented as good, honest cooking. And that’s really what we do well.” n Check out the full conversation at biztimes.com/danebaldwin

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*Among the UnitedHealthcare Level Funded plan sponsors who were MMAC members, 28.7% received a surplus refund in 2021, the average of which was $9,300. UnitedHealthcare internal reconciliation analysis, Jan. 1, 2021 through Dec. 31, 2021. Please consult a tax and/or legal advisor to determine if, by receiving this refund, there are any restrictions or obligations. Surplus refund available only where allowed by law.

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JAKE HILL PHOTOGRAPHY

BizNews

PRINTFOAM LOCATION: Wales FOUNDER: Matthew Pearlson FOUNDED: 2016 SERVICE: 3D printing resins for foam parts WEBSITE: printfoam.com EMPLOYEES: 8 GOAL: Increase number of customers EXPERIENCE: Background in chemical engineering and software development

Matthew Pearlson

PrintFoam’s 3D printing resins aim to disrupt the world of manufacturing

By Ashley Smart, staff writer

10 / BizTimes Milwaukee JULY 25, 2022

ONE OF THE BEST WAYS to reduce the amount of energy something uses is by making it lighter. That’s the idea that spurred the creation of Wales-based startup PrintFoam.

The company, founded by chemical engineer Matthew Pearlson, specializes in 3D printing resins that make foam parts.

Pearlson first came up with the idea while researching alternative jet fuel production at the Massachusetts Institute of Technology’s Laboratory for Aviation and the Environment.

He realized the best way for the aviation industry to become more eco-friendly was not by changing the fuel used but by making the parts of a plane lighter. He decided to pursue the creation of a 3D printing system using foam.

“The idea was to print things that were lightweight but still really strong,” Pearlson said. “Nobody was (3D) printing with foam, and I thought it was a really good idea to do that.”

As a side hustle while working at MIT, Pearlson began creating his 3D printing resin formulations. When the COVID-19 pandemic hit, Pearlson and his family relocated to the village of Wales in Waukesha County. With the help of a National Science Foundation grant, Pearlson set up a mini lab in Lake Country. He also started building a team of junior engineers from area universities.

By speeding up 3D printing times from

hours to minutes, PrintFoam is able to serve previously inaccessible markets with large, architecturally sized panels. One application the company is pursuing is acoustic dampening material that can be used in the building and construction space.

“When you look at the pink stuff in your house, it’s really thick because it’s just random fibers trying to catch the sound. If you were to go from a random assortment of fibers to an engineered product, you can do 10 times better at absorbing sound and like a fifth of the normal thickness,” Pearlson said.

PrintFoam offers customers the freedom to design new kinds of printed parts that help streamline processes, often through consolidation. Pearlson pointed to the example of GE’s 3D printed airplane engine that took hundreds of parts and boiled that amount down to a dozen.

“The form follows the function, as opposed to the other way around,” Pearlson said.

In the next few years, he hopes the company will be able to increase its number of production customers. Right now, PrintFoam is doing research and development for several companies and has completed six pilots. The company has brought in $500,000 in revenue and has received approximately $300,000 in grant funding. Pearlson has two patents pending related to his 3D printing resins. n

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AUGUST 25, 2022 8:00AM - REGISTRATION 8:30-NOON - BREAKFAST & PROGRAM BROOKFIELD CONFERENCE CENTER

ONWARD: MOVING FORWARD AND TAKING ACTION IN A TIME OF DISRUPTION Join us on August 25th at BizTimes Media’s Women In Business Symposium.

Attendees will gain tangible insights and actionable ideas to move forward in their own lives and as leaders in their company. After two-plus years of constant change, uncertainty and stress, this year’s Women in Business event will focus on women shaping their path forward, whatever it might be.

From breaking into the c-suite to starting a business to taking on tough technical projects or finding work-life balance, there are plenty of choices for anyone navigating the world of work. With a panel discussion featuring women leaders and focused breakout sessions, the Women in Business Symposium will focus on making and acting on the choice to take control and proactively seize opportunities rather than waiting for change to disrupt your life.

Panel: » Nina Johnson, Wisconsin Consumer and Business Banking Market Leader, U.S. Bank (1) » Xia Liu, CFO, WEC Energy Corp. (2) » Gretchen Jameson, Chief Learning Officer, Kacmarcik Enterprises (3) » Nubian Simmons, Owner and President, The Pink Bakery (4) Moderator: Kathy Thornton-Bias, President & CEO, Boys & Girls Clubs of Greater Milwaukee (5)

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Following the panel discussion, you’ll meet and hear from our Woman Executive of the Year and have a chance to attend some of the multiple breakout session for deeper discussions on topics like: Are you future fit? Increase your self-awareness | 21st Century essential skills, Making it in Milwaukee: Succeeding in your chosen field, Becoming and employer of choice, Adding to your mental health toolbox, Making sure everyone’s voice is heard in the workplace. Attendees will walk away with fresh ideas on how they can move forward in their careers and as leaders.

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Real Estate

REAL ESTATE WEEKLY – The week’s most significant real estate news → biztimes.com/subscribe

A ‘for sale’ sign sits outside a home on East Broadway in Waukesha.

Prices probably won’t drop, but offers may slow as hot housing market stabilizes

FOR A MILLENNIAL or Gen Z-er searching for their first home, the price and low availability of houses is something they’ve had to contend with for several years.

Now, with the Federal Reserve trying to put the brakes on inflation, a sudden increase in mortgage rates from the historic lows of the 2010s and early 2020s could deliver another financial hit to would-be buyers entering the housing market for the first time.

Speaking this month, Mike Ruzicka, president of the Great Milwaukee Association of Realtors, said that while the recent spike – from a low of around 2.75% earlier this year to a high of around 6% last month – may have startled would-be buyers, it’s actually a pretty normal rate, even if younger buyers are having trouble seeing it.

That’s because the last time mortgage rates topped 5% was close to 15 years ago – before the Great Recession in 2008 and before many millennial-aged buyers had even thought about owning a house, and when Gen Z-aged

WHO REALLY OWNS IT: N E H E M I A H P R O J E C T BUILDING If you have ever been on West Vilet Street in Milwaukee and noticed a monument-like structure with stone columns, it was probably the former Paul Jung Funeral Home building. Currently home to the Nehemiah Project – a nonprofit that helps young male offenders – the property has served the city’s Midtown neighborhood for more than a century.

Constructed in 1904 as a two-family flat, the building was purchased by Louis Jung in 1918, who added the columns and other Neoclassical Revival-style embellishments as part of his undertaker business. Those additions were designed by Milwaukee architect Henry C. Hensel. The building remained a funeral home until 1969 when it was taken over by the St. Vincent De Paul Society. Other owners have included M&I Bank and the TransCenter for Youth.

ADDRESS: 2506 W. Vliet St., Milwaukee OWNER: Nehemiah Project Inc. ASSESMENT: $33,000 12 / BizTimes Milwaukee JULY 25, 2022

buyers were still in grade school or daycare.

“We knew this time was coming, but we didn’t think it would take more than 10 years to get here,” Ruzicka said. “I’m going to guess that the last 10 years of low rates was a historical anomaly and that we’re getting back to more ‘normal’ rates in the years to come.”

HOME VALUES WILL LIKELY HOLD While the increasing rates might be throwing buyers for a loop and further slowing the breakneck pace of 2021’s whitehot home sellers’ market, the longterm impact of higher rates should only mean a return to fewer, more judicious offers on available homes, not a marked dip in prices, Ruzicka added.

That’s mostly due to a lack of supply.

“We are at two or three offers in a week for the average house. … Some sellers are getting a little nervous, but a normal market is really a couple offers over the course of a couple months,” he said. “Despite fewer people in the market because of the interest rates, prices are just going to sit at an equilibrium point. We just don’t have enough properties for people to purchase.”

While a slowing market should not have an impact on the price of most homes – especially those in the entry-level market – there could be a slight impact to homes in the $500,000 range as well as those above $1 million.

“At the upper end of the market, we saw a slowdown before interest rates went up due to fluctuations in the stock market,” Ruzicka said, noting higher-end purchases are mostly cash offers that often see buyers selling stocks to provide the money they need.

EXPECT MORE SPIKES Alex Leykin, chief executive officer of A+ Mortgage Services Inc., who has spent an entire career studying mortgage rates, agrees that the rates we’ve seen the last 14 years have been historically,

almost abnormally low.

But he isn’t so sure that we can expect rates to stay at the still-comfortable levels of 5% or 6%. That’s largely due to the Federal Reserve’s efforts to slow the economy, including its decision in May to begin reducing its holdings of mortgage-backed securities, Leykin said.

“It is the continuation of the tightening cycle, which isn’t a bad thing. Now we have to see how good the markets really are now that they have to stand on their own,” he said. “We just saw mortgage rates max out at 6.4% for a highly qualified buyer. Now it’s backing down into the low to mid-5s. It is very likely we will see that go back up again. It is not a guarantee. It is just how the market functions. It will just continue as the market adjusts.”

If the Fed continues to push too far in its efforts to slow the economy, Leykin said, it could easily lead to mortgage rates climbing as high as 10%, something not seen since the early 1990s.

“Long story short, the market, being the market, will absolutely overreact,” Leykin said. “The bigger question is: What happens to housing in the interim?” n

BIRD’S EYE VIEW: WISCONSIN CENTER EXPANSION After months of site prep work and the erection of two looming tower cranes, construction work at the $420 million expansion of the Wisconsin Center in downtown Milwaukee is moving forward.

Construction workers with Gilbane Building Co. and C.D. Smith are now assembling the structural concrete decks, representing the first stage of elevated structure and floor plate of the addition. The concrete decks will support levels two to four of the facility, including the parking garage.

Once complete, the expansion project will double the size of the convention center, in the hopes of making Milwaukee more competitive in attracting conventions and large events. The project broke ground in late October and remains on track for an early 2024 completion. A spike in construction costs could impact the final price tag for the project, however.

WELCOME TO THE MYPATH BOARD OF DIRECTORS Vincent Lyles We are honored to welcome you as the newest member of our Board of Directors.

Your leadership experience will support MyPath employee-owners, as they work to transform the lives of individuals with disabilities and mental health challenges.

CARA SPOTO

Welcome to the Board!

Reporter

P / 414-336-7116 E / cara.spoto@biztimes.com T / @CaraSpoto

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biztimes.com / 13

STORY COVER MID-Y 2022

EAR E

MIC CONO

REPO

RT

INFLATION RAI$ES RECES$ION FEARS 14 / BizTimes Milwaukee JULY 25, 2022

MIDWAY THROUGH 2022, THE LATEST VARIANTS OF COVID-19 ARE LEADING TO A GLOBAL SURGE OF CASES, A REMINDER THAT THE PANDEMIC STILL ISN’T OVER. Meanwhile, it’s clear that efforts to fight the pandemic have created major problems for the economy. Shutdowns during the early stages of the pandemic, followed by a huge increase of demand when the economy later reopened, threw supply chains out of whack, and they have been slow to ramp back up. Stimulus packages to prop up the economy during the pandemic, including $900 billion approved by President Donald Trump in December of 2020 and a $1.9 trillion package approved by President Joe Biden in March of 2021, plus similar stimulus programs done by other countries, have driven a major increase in inflation.

In June, the Consumer Price Index rose 9.1% year-over-year, the highest rate of inflation in the U.S. since November of 1981.

Consumers have been particularly stung by rising gas prices. Gas prices in the Milwaukee area in mid-July averaged $4.51 per gallon, up from $2.99 a year ago, according to AAA. Plus, wages haven’t kept up with inflation.

Inflation-adjusted earnings are down 3.6% from a year ago, according to the Bureau of Labor Statistics.

The Federal Reserve has promised to be aggressive in fighting inflation. In June, the Fed raised interest rates by 0.75 percent and more increases are expected as long as inflation remains high.

The rising interest rates should cool the economy down. Some fear too much. The stock market has suffered significant losses this year with the Dow Jones Industrial Average down 16%, the Nasdaq index down 29% and the S&P 500 down 21% year-to-date.

U.S. GDP grew 5.7% in 2021 after decreasing 3.4% in 2020. But in the first quarter of 2022, U.S. GDP fell 1.6% and the Federal Reserve Bank of Atlanta’s GDPNow forecasting model projects that second quarter GDP fell 1.6%.

Many consider two consecutive quarters of declining GDP a recession, although the National Bureau of Economic Research takes a more nuanced approach that accounts for the depth, spread and duration of a decline in economic activity.

MICHAEL KNETTER But perhaps the strong labor market will be the economy’s saving grace and might soften any recession. Employment rose 372,000 in June in the U.S. and the nation’s unemployment rate remains at a low 3.6%. Wisconsin’s unemployment rate was even lower at 2.9% in June.

Indeed, many employers are struggling to fill open positions. The U.S. labor force participation rate of 62.2% is still below the pre-pandemic level 63.4% in February of 2020. More labor force participation would help employers fill their open positions.

With concerns abounding about inflation and so many signs pointing toward recession, BizTimes Milwaukee once again turns to economist Michael Knetter for insight on the macro economy. A regular speaker at the annual BizTimes Media Economic Trends Event, Knetter is the president and chief executive officer of the University of Wisconsin Foundation. Earlier in his career, he served as a White House economic advisor for the George H.W. Bush and Bill Clinton administrations.

BizTimes Milwaukee editor Andrew Weiland recently interviewed Knetter to get his thoughts on the 2022 economy at the mid-year point.

Following are the questions and responses.

BIZTIMES: Inflation is occurring at levels not seen in decades and it’s obviously a major concern for consumers and businesses. How much longer do you biztimes.com / 15

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think we are going to have elevated levels of inflation?

KNETTER: “If elevated is above 2% - 2.5% core inflation, I expect it to be elevated for a few years but to come down substantially from current levels.

The 5-year TIPS (Treasury Inflation-Protected Securities) breakeven rate for inflation is about 2.75%.

That is the market’s guess at the average over that period, and I would have no reason to think my instincts are better than that. To reach that average, we would need inflation to come back to something like 4% by year end.”

BIZTIMES: The Fed is fighting back against inflation, including its recent 0.75-point interest rate increase. Is that too little, too much or just right? What impact will it have? What do you anticipate from the Fed for the rest of the year?

KNETTER: “I think they moved a bit late, but so far, they have been about right. They have cooled demand for mortgages and credit broadly and asset price declines will curb spending in ways that will offset the excess demand created by pandemic stimulus. I don’t think the Fed should go much further now. I continue to believe most of our inflation problem is due to adverse supply shocks associated with the pandemic. Interest rate hikes don’t fix that and arguably reduce incentives for supply to recover.”

BIZTIMES: One of the biggest price concerns for consumers is gas. Are we going to get any relief at the pump, or do you think gas prices will continue to rise, and if so, how high?

KNETTER: “I think gas prices will be largely stable from current levels unless we reduce gas taxes.”

BIZTIMES: Are we headed for a recession or already in one? If so, how long will it last?

KNETTER: “I don’t think we are in one at present, but demand is slowing considerably. That’s why I think the Fed will lighten up on rate hikes and hopefully the economy continues to grow at moderate rates as supply recovers. It is a delicate balance to strike.”

BIZTIMES: The labor market remains very healthy with an extremely low unemployment rate. Do you expect that to continue? Will the strong labor market keep us out of a recession or reduce the severity of a recession?

KNETTER: “Low unemployment and rising wages are two big reasons we might avoid a recession.”

BIZTIMES: “What impact is the tight labor market and inflation having on wages?”

KNETTER: “Wage growth is healthy, although not completely keeping up with short term inflation.

That is to be expected. Fiscal and monetary policy

16 / BizTimes Milwaukee JULY 25, 2022

pushed demand beyond our supply capacity. We are paying for that with some inflation now.”

BIZTIMES: Do you see any improvement with supply chains? It seems like we are still having some significant problems with some products, especially baby formula.

KNETTER: “Supply chains will slowly improve as pandemic concerns abate and we adjust to the disruption caused by Putin’s invasion of Ukraine.”

BIZTIMES: The stock market has lost a tremendous amount of value this year. Does that indicate a rough economy for the coming months? Do you anticipate a market rebound in the second half of the year or more pain on Wall Street?

KNETTER: “The stock market fell sharply in the first half of this year, but people forget that the S&P index was at about 3,300 before the pandemic hit in 2020. So, we sit here today (with the S&P 500 at 3,800 at press time) about 15% above where the market was pre-pandemic. That’s hardly a disaster. In fact, it is close to long-run average growth of the index.”

BIZTIMES: Does the crypto crash mean it will become a passing fad, or will cryptocurrency rebound as the wave of the future?

KNETTER: “Crypto in my opinion remains an asset class rooted in blind faith or the greater fool theory. It is not very useful for payments relative to other options unless you are a criminal. As an asset it has no earnings. It has a following, and it may hang around and maybe gain traction, but that’s not my expectation.”

BIZTIMES: The red-hot housing market has shown some signs of cooling recently. How do you think the housing market will fare in the coming months?

KNETTER: “It will level out due to higher interest rates and improving supply chains.”

BIZTIMES: With so many people still working from home, is the office real estate market facing a significant decline?

KNETTER: “It’s hard to say. Only a small fraction of people will work fully remote. The biggest impact will be in markets dominated by the tech sector, which will embrace remote.”

BIZTIMES: What impact has Russia’s invasion of Ukraine had on the economy, and is that going to remain a significant headwind?

KNETTER: “It’s significant as an increase to the negative COVID supply (chain) shock. It could topple Europe into recession. That might have some ripple effect and cause big divergence in currency values (resulting in a much stronger dollar).” n

CEO Q&A

SPONSORED CONTENT

ERIC SCHMIDT President, CG Schmidt BIZTIMES MILWAUKEE: What is your corporate philosophy? What sets it apart?

ERIC SCHMIDT: CG Schmidt can be defined by our mission to create exceptional facilities that improve the lives of others. We have been in business for over 100 years and this commitment continues to drive our core values today. Our founder, and my great-grandfather, Charles Schmidt, instilled the values of integrity, caring, and a passion for excellence into his work when he started the company in 1920. While many organizations prioritize profitability, CG Schmidt continues to impart our commitment to fundamental values to every employee. Coupling strong values with exceptional quality work, CG has built a reputation throughout Wisconsin as the trusted building partner to Wisconsin’s most notable businesses.

BIZTIMES: Where do you see your company in 1 year, 5 years?

SCHMIDT: In the next year, CG Schmidt will continue to expand in the Milwaukee market. We have worked in this community for over a century, and it is exciting to see vibrancy return to many parts of the city as it expands and changes like never before. Our team sees incredible opportunity to reengage in the city we know best as the need for quality healthcare, housing, community programs and education grow to serve its residents.

In the next five years, CG Schmidt plans to continue our expansion throughout the state of Wisconsin and beyond. Our clients continually ask us to support their expansion efforts across the country. Therefore, our geographic footprint is evolving as we construct quality buildings in new markets. As we grow, our assurance to the highest quality construction management service will never waiver.

BIZTIMES: What opportunities/challenges do you see on the horizon for your industry?

SCHMIDT: Like many businesses across all sectors, the construction industry has been challenged with labor shortages and creating a pipeline of skilled tradespeople. Now more than ever, individuals who demonstrate an aptitude for field and office positions in the construction industry are in high demand.

CG Schmidt partners with area high and post-graduation schools to create training and education programming as well as curriculum development, preparing our youth for apprenticeship programs. Working with school districts and community-based organizations, we can introduce individuals to careers in construction post-graduation and ensure they have the training and tactical experience to secure well-paying jobs and a life-long career.

BIZTIMES: What do you see as your most important responsibility to your customers?

SCHMIDT: At CG Schmidt, our most important responsibility to clients is to deliver building solutions that meet their immediate goals and deliver lifetime value. By embracing the missions of our clients at the onset, we can offer solutions and mitigate challenges that stand in the way of success.

Eric Schmidt

CG Schmidt offers our clients a premier service – both the quality of our construction and the investment in time we make in ensuring success.

BIZTIMES: What do you see as your most important responsibility to your employees?

SCHMIDT: Construction is a dangerous field. Our most important responsibility to our employees is their safety. CG Schmidt implemented the SafeStart Program to improve safety at the workplace and beyond. SafeStart is a program that protects our teams by training individuals to assess and anticipate before an accident occurs. This program, coupled by robust construction safety standards, ensures that our employees, or staff, residents or visitors, are protected from harm.

11777 West Lake Park Drive • Milwaukee, WI 53224 (414) 577-1177 • cgschmidt.com

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A moving target Wisconsin business owners still having difficulties navigating supply chain issues

BY ASHLEY SMART, staff writer THE FIRST HALF of 2022 hasn’t provided much relief to Wisconsin businessowners who are still navigating supply chain and logistics challenges.

Looking at the second half of the year, there may be even more issues to address.

Of course, the spike in gas prices is one of the issues at the forefront of business owners’ minds.

Neal Kedzie, president of the Wisconsin Motor Carriers Association, explained most semi-trailer trucks on the road use diesel fuel and it’s costing almost 40% more than a year ago to fill them up. On average, that’s about $1,200 per fill-up. Even before a new truck hits the road, the cost of getting the appropriate permitting and licenses is approximately $17,000.

To help address fuel prices, WMCA members are focusing on truck maintenance to make sure each vehicle is getting the greatest fuel efficiency each trip. Several carriers are also running shorter, more regional routes to avoid states with higher fuel prices. Reducing idling time is another way to save money.

The WMCA has seen some smaller companies shut down part of their fleet because it’s no longer cost effective. Others are putting off buying new trucks to minimize costs. At the same time, for companies looking to purchase a truck, it can be incredibly difficult to do so.

Kedzie predicts that some smaller operators will not be able to survive current operating cost 18 / BizTimes Milwaukee JULY 25, 2022

increases and that there will be an increase in trucking company mergers and buyouts.

“It’s going to be a rough additional six months here,” Kedzie said.

While rising fuel costs have been a drag for a good portion of southeastern Wisconsin businesses, some have remained almost immune to the problem – at least for now. Such is the case for Waukesha-based Z.T. Distribution, a full-service, direct store distribution company for the grocery trade.

“Historically, we’ve been relatively recession-proof, and now we’re pandemic-proof,” said Scot Trojanowski, president of Z.T. Distribution.

The company is seeing organic growth and, with costs of goods on the rise, an increase in revenues.

“The increase in units is sort of exaggerated a little bit because of the price increases on top of that, so we benefit from that,” Trojanowski said.

That doesn’t mean there haven’t been challenges elsewhere. The company had to wait over a year to welcome a new semitruck to its fleet. Prices on trucks are also increasing rapidly. One truck Trojanowski looked at last November saw a price increase of more than $17,000 in a four-month period.

“The type of investments we have to make in overhead – labor, fuel, those sorts of things – those are all up double digits. It’s sort of relative.

Because those costs are going up, so are the costs

of goods, which increases our revenue supply,” Trojanowski said. “If those were out of sync, we’d be in big trouble.”

However, Z.T. Distribution can’t stay on this route forever. Company leadership is constantly monitoring what their margins need to be moving forward. It’s not feasible for the company to continue absorbing costs in the long run.

“You can’t keep taking on higher wage rates, higher fuel, higher costs of machinery and not increase your margin at some point, but the increased sale dollars helped us soften that blow,” Trojanowski said.

Long-term strategies Z.T. Distribution has used to tackle some of these issues include investing in inventory to help prevent delayed product arrivals.

The company has increased its inventory by 50%.

MOVING FREIGHT ALONG One of the most common supply chain issues companies continue to face is simply moving freight along. Sandi Siegel, president and managing partner at Milwaukee-based logistics services firm M.E. Dey & Co., said it is a little easier to find space for your goods now than it was at the start of the year.

Spot rates – the rate you get if you ask for space without a contract – have gone down significantly.

Freight carriers are still seeing record-breaking profits because of recent contract rate negotiations. They’ve been able to lock in more contracts at higher rates, making up for the drop in price for spot rates.

“Importers were really anxious to sign contracts this year to try to lock in a rate with such a volatile market. You also get a better likelihood of getting space,” Siegel said.

CEO Q&A

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TOM POLICELLI CEO, PayMedix BIZTIMES: Why is the health care payment system so complicated?

TOM POLICELLI: Providers are terrified that they will not get paid. They do not cover their costs with Medicare and Medicaid, so getting every possible dollar from commercial plan members is critical. As each provider organization tries to optimize its collections, consumers become more confused and disengaged. Patients are absolutely buried in a blizzard of paper, with the average American family expecting to receive 125 pieces of mail each year related to healthcare billing. After a routine surgery, a patient may receive a bill from the hospital, the surgeon, the anesthesiologist, the radiologist ...

The sheer number of participants—doctors, hospitals, insurance companies, patients, and clinics—only add to the complexity of the healthcare payment system.

BIZTIMES: How can we simplify medical billing for all stakeholders?

POLICELLI: The answer to fixing a broken system is not to add more complexity but to simplify. In order to do that, we need to focus not on transactions and payments but on the consumer.

We can focus on getting people what they need by stripping out the complexity. Instead of receiving countless pieces of paperwork, patients can receive a simple monthly statement that they can pay via their preferred payment method. Most importantly, built-in financing means they can get the care they need while becoming more savvy shoppers since they now understand what is going on with their benefits.

BIZTIMES: How do out-of-pocket healthcare payments impact patient access and care?

POLICELLI: The trend in healthcare has been to shift the cost burden to patients as employers increasingly move to higher deductible health plans.

With out-of-pocket costs skyrocketing for consumers, the risk of avoiding care due to cost reasons is significant. For many people, they would rather avoid getting the care they need than risk the negative impact medical debt can have on their lives. The disturbing trend is that people not only avoid seeking care, but they also cut back on medications to treat chronic conditions like diabetes or put off critical life-saving screenings like colonoscopies or mammograms. Our company was founded to help patients get the care they need when they need it and to find manageable ways to pay their bills. We will cover their medical bills up to their full out-of-pocket maximum and then work out a low to no interest repayment plan that is flexible and fits their budget. We want people to have access to the care they need.

BIZTIMES: What is the PayMedix “SuperEOB” and why is it important?

POLICELLI: The “SuperEOB” is a simple consolidated statement that gives a patient the essential information they need to determine how much they owe. In today’s world, patients are confused by a flurry of multiple ‘explanation of benefits’ (which don’t explain much), bills that don’t line

Tom Policelli

up with EOB, and collection notices about unpaid items and other notices.

By putting everything in one place, consumers can feel more comfortable knowing what they owe and are more likely to pay it. Since we started using the “SuperEOB”, we’ve reduced the amount of paper going into patients’ homes by six-fold. And our satisfaction levels are three times higher than the industry average. People love simplicity, and that is what we provide.

1000 N. Water St, Suite 1100 • Milwaukee, WI 53202-3197 (844) 392-1652 • paymedix.com

biztimes.com / 19

Kedzie

The biggest unknown now is whether the union representing West Coast longshoremen will decide to strike. Their normal contract includes a no strike clause, but that contract has expired. Siegel said not too many people in the industry are expecting a strike, but a slowdown is still a possibility.

“They keep working, but you can’t force how fast they load containers or move goods around,” Siegel said. “Any kind of disruption or slowdown, which has been a previous tactic, would be really challenging to the already congested volumes.”

The union is still in negotiations and a sticking point continues to be automation. While port operators see increased automation as a way to address congestion and help with the ongoing worker shortage, longshoremen see it as a threat to their employment.

Siegel said automation would allow containers to be stacked higher and more densely, and workers would have a better way to track what’s inside each container.

To help combat the effects of a possible slowdown, importers can split up their freight so a portion of goods avoids West Coast ports.

“The whole rhythm of supply chains was disrupted, and it’s still disrupted,” Siegel said.

20 / BizTimes Milwaukee JULY 25, 2022

Trojanowski

She predicts congestion at ports will start to ease up by the end of the year and said there’s already indication of more available space on the market, however, getting back to pre-pandemic levels of moving freight and costs might never happen.

Infrastructure issues will continue to be a longterm issue to resolve.

“We need some more investments in automation to be able to handle our cargo more efficiently,” Siegel said. “We need to build more infrastructure, and that includes our terminals, our highways, … the ability for truckers to move around and deliver freight more efficiently. It’s still a really fragile supply chain.”

PEOPLE AT THE FOREFRONT Brian Sprinkman, chief executive officer of Port Washington-based Molded Dimensions, said the company wasn’t having the same supply chain issues other manufacturers were seeing until the past six months. What has hit the company hardest is hiring challenges.

“If anyone thinks in five years we’re going to solve this labor problem, it’s actually going to be worse,” Sprinkman said.

To address the worker shortage, Molded Di-

Siegel

Sprinkman

mensions brought on a full-time recruiter. Boosting marketing efforts have also helped attract talent.

In 2021, the company had approximately 85 employees. Then, they hired another 85 people, with 40 staying on. The company has also welcomed a full-time logistics coordinator.

While Molded Dimensions has been investing in recruitment efforts, the company is also looking at introducing more automation to make things more efficient and cheaper, Sprinkman said. Since Molded Dimensions also does business overseas, the company produces 30% of its goods in other countries to keep prices competitive.

Employee wages have increased by 15% over the past year, and the company has just sent out its second price increase notification of the year.

Still, Molded Dimensions is on track to beat its record-setting 2021 by 20% this year.

Right now, the company is just trying to make its deliveries on time in a world where lead times are longer than ever and often difficult to pinpoint accurately.

“When we ask our suppliers about contracts, rebates, guarantees, … there are very few of them that are interested in that conversation right now,” Sprinkman said. “I don’t think things are going to change much in the next six months.” n

CEO Q&A

SPONSORED CONTENT

JIM POPP President & CEO, Johnson Financial Group BIZTIMES MILWAUKEE: What is your favorite success story?

JIM POPP: I know it’s biased, but I love the Johnson Financial Group success story. In 1970, Sam Johnson saw the banking landscape consolidating and felt that communities were being left behind. He believed there was a need for a truly local bank that could be bigger and more capable than the smallest banks were able to be, while also being more local and community-centric than the largest banks were willing to be. With that vision, Johnson Bank started in a double-wide trailer on a corner in Racine, WI. We still believe in that philosophy today and that story is a big reason I’m here!

BIZTIMES: What failure have you learned the most from?

POPP: I’m not sure I can pinpoint just one. Trial and error – with a few failures along the way – is a natural part of the evolution and progression of any business. The financial services industry is evolving at an incredible pace, pushing all of us to grow, adapt and change the way we do things.

At JFG, we accept that we’ll fail from time to time as we make changes to improve our customer and associate experience. The expectation is that we course-correct, learn from the experience and not make the same mistakes again.

BIZTIMES: What do you see as your most important responsibility to your employees?

POPP: Our associates are truly the “secret sauce” that drives our success. We have a responsibility to make JFG an exceptional place to have a career – not just a job. That means fostering a culture that is safe, productive, energetic, and inclusive. It means investing in our associates through training and development, coaching and mentoring, while providing opportunities for career advancement and mobility. Happy, engaged associates are the life blood of good companies.

BIZTIMES: What do you see as your most important responsibility to your customers?

POPP: We have a responsibility to be solution providers, not salespeople, for our customers. That means probing and listening to understand their unique stories and needs. Once we know their story, we do our best to deliver the advice, counsel, and capabilities to make their lives easier and meet their personal goals. At JFG, we also talk a lot about providing a banking experience that is Simple, Safe, Competent and Personal. If we can do that, we have a great chance of delighting our customers and developing lasting relationships.

BIZTIMES: What is your corporate philosophy? What sets it apart?

POPP: JFG was built on the idea of making life better for the people, companies, and communities we serve. That means being a great place to work; delivering an exceptional customer experience; and being laser

Jim Popp

focused on engaging in the communities we serve. We’re privately held, family owned, and truly local. We’ve built a business that is diversified and well capitalized, with all the capabilities of the bigger national organizations.

Most importantly, our shareholders expect us to make decisions and invest in our company with an eye toward the next quarter century, not just the next quarter. We think that sets us apart.

555 E. Wells • Milwaukee, WI 53202 (888) 769-3796 • johnsonfinancialgroup.com

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Facing inflation, consumers turn to value-conscious purchases

BY MAREDITHE MEYER, staff writer WITH INFLATION on the rise, many consumers are adjusting their spending behavior.

Food was among the main drivers of a 9.1% jump in the annual inflation rate last month, with “food at home” prices increasing 12.2% yearover-year.

A June report by Madison-based grocery tech startup Fetch Rewards paints a picture of how rising grocery prices are taking hold. While average grocery spend per household remains elevated over 2021 levels, shoppers are purchasing fewer items overall. In June, average units per household dropped 3.5% year-over-year, following a 6.7% decrease in May. But even as shoppers are cutting back on the amount of groceries they put into their cart, they still saw a 6.6% increase in spending per trip to the store last month.

The Fetch report also highlights a shift in shoppers’ purchase mix, as private label brands increased significantly for the first time in June by 12.4%.

“The long-term effects of brand loyalty remain to be seen,” according to the report. “However, a long-term flight to economy may turn into permanent purchasing patterns. Consumers may not return to branded products when purchasing power returns.”

22 / BizTimes Milwaukee JULY 25, 2022

In the way of discretionary spending, consumers in recent months have shifted from goods to services. The latest data from the Bureau of Labor Statistics shows an increase of $76.2 billion in monthly spending on services in May, offset by a decrease of $43.5 billion in monthly spending on goods.

Brian Spaid, chair of the Department of Marketing at Marquette University, attributes the trend to the continued return to pre-pandemic normalcy. As more people get comfortable leaving their homes, they’re no longer investing in new furniture to spruce up the living room but rather on dining out at restaurants or booking a vacation.

For Destination Kohler, which is the hospitality arm of Kohler Co., bookings at its resort hotels, restaurants, Kohler Waters Spa and golf courses are strong well into next year, a company spokesperson said.

As a result of shifting consumer preferences – on top of ongoing supply-side challenges – major retailers like Target and Kohl’s have adjusted their expectations for the second half of the year.

In June, Target announced several updates to its 2022 operating plan, including revising its sales forecast for “discretionary categories like home, where trends have changed rapidly since the be-

ginning of the year,” according to a news release.

Driven by “a softening in consumer spending,” Menomonee Falls-based Kohl’s Corp in early July said it now expects sales to be down high-single digits for the second quarter as compared to previously projected low-single digit decrease.

Of course, consumer spending will never move 100% to services, said Spaid, but for a lot of the goods people are purchasing these days, “value-conscious behavior” is driving the decision.

“Those sorts of behaviors where you’re switching brands, seeing if you can get more life out of what you have, that’s the sort of stuff that I think we’re going to see quite a bit of going forward,” he said.

Value consciousness is playing out across multiple sectors, from grocery – as indicated by the Fetch Rewards report – to fashion, which could help explain why Milwaukee Boot Co. has seen sales and average ticket size almost double in recent weeks. The brand and its affiliate Moral Code – both private labels produced by Milwaukee-based parent company Well Dressed Men Footwear and Accessories – are known for handcrafted, high-quality leather products.

It’s worth noting that the sale uptick at Milwaukee Boot Co. has followed the opening of a new retail space in the lobby of Milwaukee’s Iron Horse Hotel, where foot traffic is heavier than the brand’s previous storefront. But chief executive officer Mark Kohlenberg sees larger factors at play.

“For years, Americans have been buying disposable fashion. … Ultimately, from a sustainability factor, it’s the worst thing you can do,” said Kohlenberg. “Generally, consumers are getting smarter. They’d rather have a handful of legacy products in their closet that can last years instead of months, and they’re willing to spend a little bit more to invest in them.”

A pair of Milwaukee Boot Co. leather boots range from $150 to $200 – hardly “Gucci-level prices,” as Kohlenberg points out.

“All of our brands are still very value-focused and attainable, but I think our position in the market – particularly since we own our own factories, we’re vertically integrated – has provided us a really strong advantage in the current situation, both with inflation and supply chain issues,” he said.

Speaking to BizTimes Milwaukee in January for an economic forecast story, Kohlenberg predicted a retail markup of $5 to $10 on his products if supply chain disruption and shipping costs did not improve soon. Sure enough, a “modest price increase” went into effect several weeks ago.

“Honestly, it was mainly to cover increased freight costs,” he said. “That’s something that is out of our control and something that’s been dramatically affecting margins over the past six to 12 months, and we really didn’t have a choice.” n

CEO Q&A

SPONSORED CONTENT

JEFF MORIN President, Milwaukee Institute of Art & Design

BIZTIMES MILWAUKEE: What did you learn from the pandemic crisis? How is MIAD stronger?

JEFF MORIN: After 35 years in higher education, I have hundreds of inspirational stories from students who have persevered, failed and bounced back, or created a path where there wasn’t one for them. The pandemic created so much hardship and occasional moments of inspiration. When David Gabriel, 2020 MIAD Industrial Design alumnus, left for spring break in 2020, he was in the process of building a lunar habitat module for his senior thesis project in our 3D Lab. During the break, MIAD was forced to close the campus because of the pandemic, making it impossible for David to complete his life-sized structure. He pivoted the project to a virtual reality experience for the lunar habitat module. David Gabriel is now a Virtual Reality Developer and Space Division Project Engineer at Dynetics, Inc. Every student faced a version of this challenge and had to summon the problem-solving skills they had been developing. As faculty and staff, we quickly learned how to support experiential learning from afar and the examples of individuals going the extra mile are plentiful and affirm our institutional values. We added resources for mental health and wellness initiatives because the pandemic has been more traumatic than we wish to acknowledge. And we know that the need for these resources will be there for the foreseeable future. MIAD will be stronger from what we have learned about education during the pandemic, but we will have to take the time to reestablish our very pronounced sense of community.

BIZTIMES: What do you see as your most important responsibility to students?

MORIN: I wholeheartedly believe that a college education is an economic way up and out for some and transformative for most. It was both for me.

Consequently, it is our duty within higher education to do anything and everything to help students cross the stage to collect that diploma. We must commit to decision making that does not impede student progress.

If students leave college without the diploma, they leave with debt and no credential to help clear that debt.

BIZTIMES: Who was your hero when you began your career? Who is it now?

MORIN: In the beginning, it was teachers like Martha Keezer, my high school art teacher, who spent two years working with me on my portfolio to get into college. One’s portfolio often plays an important role in college scholarship awards. Marty also drove me the eight hours to my first campus tour. Even with a full tuition scholarship, grants and loans, it was a financial struggle to put myself through college. Today, my heroes are philanthropists who support students, not because they know them personally, but because they value the students’ potential as individuals, to community, for society.

Jeff Morin

273 E. Erie St. • Milwaukee, WI 53202 (888) 749-MIAD • miad.edu

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The Huron Building has signed major leases with companies like Husch Blackwell and Old National Bank since opening in 2020 at 511 N. Broadway.

Both companies relocated there from older buildings.

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With abundance of available office space, companies seek smaller, higher-quality locations

BY CARA SPOTO, staff writer TRYING TO GET a clear sense of Milwaukee’s office market can be a bit confounding these days — especially if you’re listening to the chorus of conflicting perspectives.

Speak to a broker or city booster, and they’re liable to paint a rosy picture of workers eager to leave the cocoons of their home offices and head back out among the high rises.

Speak to someone who’s been out walking around downtown on a Tuesday or Wednesday afternoon, and you might hear them exclaim, “It’s dead out there.”

Gard Pecor, a senior market analyst with CoStar Group, said the condition of Milwaukee’s office market is neither dandy nor dire. It’s just different.

Data from CoStar shows that the Milwaukee market, which encompasses all of Milwaukee, Waukesha, Washington and Ozaukee counties, ended the second quarter with more than 12 million square feet in available office space. That’s the highest number since the first quarter of 2021. Prior to that, the last time the region even came close to seeing that amount of available space was in the first quarter of 2011, when available square footage rose to about 10.3 million.

Most of that available space is in the suburbs, 24 / BizTimes Milwaukee JULY 25, 2022

said Pecor, but 4 million square feet is on the market in the city of Milwaukee.

“Basically, downtown Milwaukee has the most available space in both direct available space and sublease space since 2006,” Pecor said.

DIFFERENT TIMES, DIFFERENT NEEDS On the flip side, leasing activity is rebounding. In the second quarter of 2021, brokers originated or renewed office leases in Milwaukee totaling just over 400,000 square feet, according to CoStar. In the second quarter of this year, that number was closer to 500,000 square feet.

In June 2021, brokers signed around 35 leases. In June of this year, that number is close to 44.

But the real story is where the increase in leasing activity is meeting a desire for smaller spaces.

Although there have been some recent announcements of larger leases, including Old National Bank’s decision to lease 34,000 square feet at the city’s newest office building – the 11-story Huron Building at 511 N. Broadway – overall lease sizes have been trending downward.

The 12-month trailing average for lease sizes prior to the COVID-19 pandemic was about 4,000

square feet. So far this year, that number has been hovering at around 3,000 square feet.

“The pandemic accelerated trends we were already seeing,” Pecor said. “Companies have been downsizing their space for a while now.”

While there are a lot of people who do not want to come back to the office – mainly commuters – there are still plenty of workers who do, Pecor said. And that will continue to impact the sizes of leases as well as the quality of offices employers are seeking for whatever balance they can strike with their workers.

Jim Cavanaugh, principal at Cushman & Wakefield | Boerke, is seeing the desire for higher-quality spaces when he talks to clients.

“If you are going to hire someone and justify the need for them to come into the office, then the space needs to be high quality,” Cavanaugh said. “We’re seeing less cube farms, and more spaces that are specifically designed to allow for collaboration.”

How that shift has played out with existing leases, he said, is that landlords are providing tenants with a greater allowance for space improvements and build outs. That’s especially true now that rental rates have begun to increase again.

“Certainly, we are not going to be adding new product, but I don’t think we are going to see a huge jump in vacancy,” Cavanaugh said.

SUBURBAN EXODUS? For all the talk of “the urban exodus” during the pandemic, Pecor notes that in Milwaukee’s case, the opposite has been true. Although Milwaukee has a lot of available space on the market – mostly in older office buildings – the market also added 750,000 square feet of speculative office space since 2019.

And more than half of that is currently leased.

The real exodus seems to be occurring in the suburbs.

While the greater metro area has added about 2.42 million square feet in office space since 2019, it has also ended up with an additional 2.23 million square feet of available office space from tenants downsizing, closing or moving out of the suburbs.

“There’s been a strong movement from the suburbs to downtown Milwaukee,” Pecor said.

And, unlike the city of Milwaukee, which can lean on its population density and vibrant entertainment and retail districts to repurpose some obsolete office buildings into hotels and apartment buildings – the 100 East building, which is in foreclosure is one such candidate – suburban communities may face a tougher battle in finding ways to repurpose buildings in suburban office parks.

Even still, some Milwaukee buildings may end up facing the wrecking ball, if only so the land itself can someday be reused – maybe for a more modern office development.

“I don’t think the office market is distressed,” Pecor said. “There is still going to be a need to collaborate.” n

CEO Q&A

SPONSORED CONTENT

JASON BERTHELSEN Owner/President, Newport Network Solutions BIZTIMES MILWAUKEE: What sets Newport Network Solutions apart from others in the industry?

JASON BERTHELSEN: As a company devoted to both quality and integrity, one of our main philosophies is to surround ourselves with others who are likewise committed to excellence in their work. Not only are our employees some of the best in the “biz,” but we are also fortunate to collaborate with partners and vendors who truly want to see us grow and succeed. These relationships are incredibly important to us, and we’re humbled by the opportunities our partnerships have brought to us over the years. We always aim to reciprocate the support we’ve been given by applying the golden rule to everything we do and we believe this mindset both sets us apart and sets us up to be a go-to resource in southeastern Wisconsin for decades to come.

BIZTIMES: Do you have any new products or services to announce?

BERTHELSEN: Yes! We’re excited to announce that we’ve recently added a Fire Alarm division at NNS, which includes full design, installation and monitoring to protect your business from fire hazards. We believe that by adding this division to our company, we have an opportunity to offer a more comprehensive service to our customers and partners. The Fire Alarm division will complement our existing Network Infrastructure and Security divisions and give our partners and customers the peace of mind they need to focus on their business. While expanding, we’ll continue to maintain the same model of success we follow in our other divisions to provide more quality solutions to the area.

BIZTIMES: What do you see as your most important responsibility to your employees?

BERTHELSEN: Our biggest responsibility is to create more opportunities for our employees to grow and succeed. We achieve this in many ways. First, we share our vision with our employees. It’s important to us that they’re fully aware of the big picture, they’re included in our decision making, and they understand where we’re headed within every division. This requires transparency and trust, which contributes to a real family dynamic here at NNS. We have an open-door policy with all our employees and managers.

This drives efficiency and gives everyone a seat at the table. Finally, we simply let our employees do their jobs. We believe in support and facilitation rather than micromanagement and dictation. We’re confident in our employees’ abilities to work autonomously and make the right decisions.

BIZTIMES: Where do you see your company in 1 year? 5 years?

BERTHELSEN: In the next year, we hope to see significant growth in our new Fire Alarm division. We have the right people in place. Our product partnerships have been formed. Now comes the fun part. We love to create, build and execute a new project, and this process encompasses all aspects of

Jason Berthelsen

true entrepreneurialism—something we’re passionate about. Additionally, we aim to double in size over the next five years, which is in line with our past growth. One of the ways we can accomplish this is through acquisition.

We’re always open to the possibility of purchasing other companies. In the meantime, we’ll continue to focus on building up all our divisions by working together and fostering a company community of progress and mentorship.

17685 W. Lincoln Ave. • New Berlin, WI 53146 (414) 453-8099 • newportnetworksolutions.com

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Taming inflation through rising rates ripples through economy

BY ARTHUR THOMAS, staff writer AT A HIGH LEVEL, it is easy to understand what the Federal Reserve is attempting to do by raising interest rates. Inflation has skyrocketed and the Fed’s decision to raise interest rates should cool demand from consumers, ideally bringing inflation under control without pulling the economy into a recession.

But there is a lot that happens in the economy in between the decision to hike rates – by 0.25% in March, 0.5% in May, 0.75% in June and potentially even more in July and beyond – and the actual outcome the Fed is trying to achieve.

While the housing market may be the most obvious place where higher rates shape economic activity, there are plenty of other areas, from credit cards and car loans to lines of credit and equipment financing.

Take We Energies, for example, which had to update its rate increase request with regulators to account for nearly $12 million in additional borrowing costs brought on by rising interest rates since it initially filed the case in April.

Gus Faucher, chief economist at PNC Financial Services, said higher rates do make some business projects less feasible, but there is still reason to expect that companies will continue to invest.

“Businesses are still facing strong demand, and they’re still having difficulty in hiring, so they can still undertake investments that make their existing workforces more productive,” Faucher said, adding while PNC’s base case does not call for a recession, if there is a downturn, it would likely be short and mild.

Still, he expects businesses would be more likely to invest in things with a quicker return on investment.

“It’s one thing to invest in an information technology project, it’s another thing to buy big pieces of machinery,” Faucher said.

Rose Oswald Poels, president and chief executive officer of the Wisconsin Bankers Association, said that increasing rates will translate to higher costs for lines of credit and operating loans.

“I think most businesses have operating lines of credit frankly as a prudent measure of managing their cash flow, and then it just is a matter of how dependent is the business on the loan versus being able to manage some of that through their 26 / BizTimes Milwaukee JULY 25, 2022

own cash flow,” Oswald Poels said.

Some businesses may have come through the pandemic in good shape and can manage, others may have been hit by supply chain issues and have been forced to tie up cash by holding more inventory than normal, she said.

FAUCHER

“You’ve got a higher debt service ratio and if you’re a company that may have cyclicality in their earnings or if you may have earnings challenges and your earnings slow down, you could definitely start to see cash flow tighten, and I think that’s often the KELLER concern when rates go up,” said Andy Keller, Wisconsin market manager at J.P. Morgan Private Bank.

Around 70% of Keller’s private bank clients are current or former business owners and, combined with conversations with colleagues in commercial banking, he said there doesn’t seem to be a drop in loan demand.

“If rates continue to surge the way they have, you might expect to see a decline in demand for longer-term loans like real estate … and then maybe large capital raises for M&A-type activity,” Keller said.

The expectation that the Fed will continue to raise rates might be helping fuel continued loan demand. If borrowing is going to be more

expensive in the future, it might be prudent to do it now.

“I do think you’re seeing business owners in particular borrowing money now and they’re trying to do so ahead of further interest rate increases,” Oswald Poels said.

For banks themselves, rising rates do have some benefit as net interest margin – the difference between revenue generated from interest on loans and money paid out for deposits – grows.

Oswald Poels said banks are seeing improved profitability, but many are also putting more money into loan loss reserves, not because they are seeing higher defaults now, but because they’re anticipating a downturn in the future.

Jay McKenna, president of North Shore Bank, said community banks in particular have been squeezed by the low interest rate environment in recent years. Refinancing mortgages helped offset the pressure, but that business has slowed with rising rates.

On the deposit side, banks have plenty of liquidity, so even with rising rates there isn’t as much of a need to increase what they pay out, but Oswald Poels noted banks are hearing from customers OSWALD POELS

MCKENNA

who want a better return or they will take deposits elsewhere.

“There’s some market competition that is always obviously in play,” she said.

McKenna said he tries not to get too excited one way or another when it comes to interest rate movements, knowing they swing both ways at any time. Still, he is expecting the Fed to continue making fighting inflation a priority. The central bank has a dual mandate to control inflation and maximize employment and the latter is under control with low unemployment rates.

“I think that gives them a lot of freedom to work on the other side of their dual mandate, which is price stability,” McKenna said. n

CEO Q&A

SPONSORED CONTENT

RANDY MUELLER CEO, Potawatomi Business Development Corporation POTAWATOMI SEES OPPORTUNITY AND RESPONSIBILITY IN ELECTRIC VEHICLE MARKET BIZTIMES MILWAUKEE: What is Potawatomi Business Development Corporation all about?

RANDY MUELLER: The Potawatomi Business Development Corporation was established in 2002 as the economic development arm of the Forest County Potawatomi Community. The Corporation exists to diversify the Tribe’s business interests beyond gaming to secure the future of the Tribe for the next seven generations and beyond. Our business holdings include PBDC Federal operations, Greenfire Management Services, Data Holdings, PBDC Travel Centers, PBDC Real Estate Group, PBDC Electric Vehicle Group and Wgema Leasing. We employ more than 1,000 people across the United States. In our efforts to build an economic engine for the Tribe, we are also acutely aware of the importance of supporting the communities in which we live, work and play.

BIZTIMES: What opportunity do you see on the horizon?

MUELLER: The Forest County Potawatomi Community has at its core an enduring commitment to the environment and building a sustainable and healthy world. As such, we recently created a new business unit focused exclusively on researching and deploying offerings in the emerging electric vehicle technology (EV) space. PBDC is actively establishing a set of commercially viable products and services that will include partnerships, joint ventures, and acquisitions. We believe strategic investing in the EV ecosystem will build a long term and profitable high growth business for the Tribe while expanding their footprint and commitment to sustainability. We look forward to collaborating with multiple strategic partners in the academic, industry, governmental and research sectors to build its platform of EV offerings.

BIZTIMES: Why are you pursuing this now?

MUELLER: Electric vehicle sales in the United States have grown at an average annual rate of more than 40 percent since 2016. By 2035, some of the world’s largest automotive markets will have transitioned to selling only electric vehicles - providing both a glimpse of a greener future and significant economic opportunity. We’ve also observed a growing need for EV technologies across our subsidiaries and will position the new business unit to develop innovative solutions to meet these needs. We own, operate, and service a diverse group of businesses and expect to provide significant synergies pertaining to efforts in the EV market to our subsidiaries.

BIZTIMES: What will the EV business unit deliver?

MUELLER: The company will take a broad approach to its evaluation of market opportunities, including segments beyond charging and batteries.

We are looking at enabling technologies such as merchandising applications,

Randy Mueller

integration applications, software OEMs, and POS integration applications and integrators. This approach aligns well with other EV efforts the Forest County Potawatomi Community has already established.

BIZTIMES: What is the most important lesson you’ve learned as a business leader?

MUELLER: The best advice I can share as a business leader is the importance of appreciating and valuing your team. They are your most important asset. Establishing a strong culture of inclusion, diversity, equity, personal development, and a sense of community is a critical success factor in business. It’s a challenging hiring market for every business sector right now and I am grateful we’ve worked hard to create a culture that helps us attract and retain talent.

3215 W State Street, Suite 300 • Milwaukee, WI 53208 (414) 290-9490 • potawatomibdc.com • info@potawatomibdc.com

biztimes.com / 27

Special Report

Companies on the hook for stronger cybersecurity as demand for cyber liability insurance skyrockets

BY KATHERINE BECK, for BizTimes COMPANIES WHOSE CYBER LIABILITY insurance plans are up for renewal may be faced with some big IT challenges: Make your operations more secure or don’t be renewed.

“I am seeing a definite trend from business customers. They are being held accountable by their insurance carriers to make meaningful improvement to their cybersecurity,” said Michael Senkbeil, partner with Chortek LLP. “The insurance carriers are insisting multi-factor authentication must be used everywhere.”

Multi-factor authentication can make systems, email accounts and websites more secure against outside threats. And with cyberattacks increasing in frequency as well as severity, security is on the minds of many business owners, said Jason Navarro, director of the cyber crime insurance and risk management for R&R Insurance Services.

“It’s all about the ransoms. They are incredibly lucrative, and people will pay to get their businesses back,” he said.

Navarro said to make no mistake about it: Cyber criminals operate like businesspeople. For them, attacking a company is a business transaction, he said.

“You have to be prepared for this, you have to train … as a business owner, you as an individual, this impacts all of us. You have to be prepared for cyber risks like any other known exposure in life,” Navarro said.

INSURANCE AGAINST OUTSIDE THREATS Navarro said R&R Insurance established its cyber crime insurance division about five years ago and it remains one of only a few insurance companies in Wisconsin with a dedicated cyber division.

When the division was started, it was “an evolving segment of claims for the business customers that we were representing,” Navarro said.

The intent was to protect existing R&R Insurance customers while trying to attract new ones. In the past few years, the demand for cyber security in-

surance has grown substantially, Navarro said.

Navarro compared a cyberattack on a business to a specialty physician. He said that an IT employee is like a primary care doctor, but then when something more severe happens, such as a heart attack, you go to a specialist. Such is also the case with a cyberattack, he said, explaining that insurance companies help their policy holders bring in the specialists to deal with the attack because of the severity and urgency of the issue.

Having insurance will pay for the costs to react and recover, said Kevin Bong, a director on Sikich LLP’s cybersecurity team. The insurance carrier will provide a lot of resources, such as a breach coach who will help a company understand what the next steps are and how to manage the breach. Legal counsel may also be used so a company can understand their legal exposure and how they must notify others.

“An insurance policy allows you to do it thoroughly and do it right,” Bong said.

Proud Partner in Our Wisconsin Communities We couldn’t be prouder of the legacy we’re building. Proud of our longstanding commitment to our communities. Proud to be a workplace of choice. And proud to foster a diverse, equitable and inclusive environment for our dedicated associates.

If you’re looking to continue your career with a trustworthy partner who is truly invested in your long-term success, read the Q&A with CEO Jim Popp, or visit us at JohnsonFinancialGroup.com/careers to learn more.

Recognized as a Top Workplace by USA Today in 2020, 2021 and 2022; Best Place to Work for LGBTQ+ Equality by Human Rights Campaign Foundations 2022 Corporate Equality Index; and 2021 and 2022 Best Place to Work for Disability Inclusion by Disability:IN and The American Association of People with Disabilities (AAPD).

28 / BizTimes Milwaukee JULY 25, 2022

CEO Q&A

SPONSORED CONTENT

JOSH KOZINSKI CEO, Sky High Marketing BIZTIMES: What did you learn from the pandemic crisis? How is your company stronger?

JOSH KOZINSKI: Like a lot of other companies, Sky High Marketing learned what expenses were truly needs and what were wants. Our business dipped 80 percent so some very hard decisions needed to be made to keep our doors open. Thankfully, the staff we were able to maintain worked extremely hard and were very creative in continuing to find merchandise solutions for our clients. This included a large shift in the short term to branded PPE. We were able to make some amazing staff hires as our business bounced back and our current staff is hands down stronger, more skilled, and has much more expertise than we have had in the 25 years that we have been in business. I’m thankful for every team member every day.

BIZTIMES: What do you see as your most important responsibility to your employees?

KOZINSKI: I see my responsibility to my team members as my greatest business responsibility. Our amazing team of people works so hard every day and has helped take Sky High Marketing to levels I couldn’t have ever imagined. It is ultimately on me to make sure that we treat those people as good as we possibly can. We do this by giving them the tools they need to be successful and compensating them in as many ways as possible. We are currently preparing for a full company trip to celebrate our 25th Anniversary.

This is a major investment, but one that will be worth every single penny.

BIZTIMES: What are a few of your corporate philosophies? What is the culture at Sky High Marketing?

KOZINSKI: We find great people, give them the resources they need, and let them perform. It’s very important that expectations are set, and ours are high, but then once the team member understands what those expectations are that we get out of the way and let them get their jobs done. We like to work and play hard and we invest a lot into team building events, happy hours, grill outs, birthday parties, and more. It is our goal daily to create a family atmosphere. I’m a huge believer in an in-office environment with some flexibility. This may not be a popular belief in today’s business climate, but I will put our team and our philosophies up against our competition any day of the week.

BIZTIMES: Does your company have any new products and service to announce?

KOZINSKI: Our newest service is in-house digital printing. We added this service in Q4 of 2021 to help us take over more control of our supply chain which is extremely important given the state of current supply chains. We also have made investments in our creative department and embroidery

Josh Kozinski

shops. We will continue to respond to what our clients need by making additional investments as necessary. We will also be looking to move to a much larger facility in the next 12-18 months to accommodate our growth.

259 W. Broadway • Waukesha, WI 53186 (262) 542-8286 • skyhighmarketing.com

biztimes.com / 29

PROTECTING AGAINST THE CRIMINALS As Senkbeil puts it, “The bad guys only need to be right one time; the good guys have to be right all of the time.”

Often a company can be crippled by a cyber criminal who forces it to shut down until they pay a ransom, commonly in the form of cryptocurrency.

“An attacker will break into a 30-employee manufacturer, and they are using very sophisticated tools and techniques against these little manufacturers. It can feel like you are overwhelmed because the attackers are using these sophisticated techniques and (the company doesn’t) even have a full-time IT person,” Bong said.

With the drop in Bitcoin values, cyber criminals are left with a choice: Increase the amount of the ransom or increase the frequency of the attacks.

Bong, who leads Sikich’s forensics response team and works with insurance companies to respond to incidents, said no one is immune. In fact, he said small manufacturers are a significant target because they typically have not invested as much into protecting their network, but should a cybercriminal get a hold of it, the company may have to pay $100,000 or more to be able to be back up and running within a few days.

Ransoms may be willingly paid, he said, because the attackers have encrypted the company’s data, so it needs to buy the password to get its data back. Or, before the criminals encrypted the data, they also stole it. In the case of stealing, they may put a small portion of it on a “shaming website,” Bong said, and will threaten to post more if the ransom isn’t paid. Having a system backup also doesn’t guarantee you are out of danger, Bong said, explaining that attackers can even ac-

cess and then destroy the backup.

However, “the scourge of ransomware seems to be diminishing because of preventative measures,” Senkbeil said.

The trend is now moving toward phishing, allowing the attacker into the system to do more lateral movement and digging in the company’s systems.

The FBI defines ransomware as malicious software that prevents users from accessing their

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CEO Q&A

SPONSORED CONTENT

AMY LINDNER President & CEO, United Way of Greater Milwaukee & Waukesha County

BIZTIMES: United Way is such a recognizable name, but for those who may not know much about your organization, tell us about your work.

AMY LINDNER: In simple terms, United Way has one goal and that is to help people live better lives. Every year, thousands of generous organizations and individuals donate to our community campaign, and these donations fund 200+ programs at 100+ local nonprofits. These programs support the health, education, and financial stability of people in our local community. All of the programs that United Way invests in are measurable and held to high standards.

BIZTIMES: We know that philanthropy is an important part of any local business.

How does the work of United Way fit into the work of the business community?

LINDNER: We know that younger generations are seeking out communityminded companies not only to buy from, but also to work for. They have made this a clear generational priority. Our data show us that 79% of the workforce prefer to work for a socially responsible company. Companies that run a United Way campaign elevate themselves in the community and have employees who feel part of something bigger. In addition to having a way to give, employees have a chance to learn more about services that are offered to those in need and to get directly involved by volunteering throughout the year.

BIZTIMES: Recently you expanded the focus of your work by elevating key community initiatives. Why is this important?

LINDNER: For anyone who knows our United Way, they know that we are not afraid of big challenges. We don’t shy away from problems that many people think are impossible to solve. We know that these issues are important to our community, and we know that we have the ability to bring the right people together to do something about them. For example, we are going to end family homelessness by the end of 2023. We are also focused on reducing barriers to finding a good job, as well as focusing on racial equity and social justice, just to name a few.

BIZTIMES: As the President & CEO of United Way, what are some of the things you are proud of?

LINDNER: I’m extremely proud that people trust our United Way. Donors expect us to be good stewards of their money, and we take that responsibility very seriously. We work very hard to earn their trust. I’m proud of the work we do every day, and I’m extremely proud of the way we respond to immediate needs in our community. This was evident with the onset of the pandemic. When local nonprofits were in need, we delivered supplies and support for services so they could continue their work. When the Waukesha

Amy Lindner

Christmas Parade tragedy occurred, we quickly mobilized and co-created the United for Waukesha Community Fund. We saw over $6 million in donations from all 50 states and countries all over the world. There is so much that I am proud of.

225 W. Vine Street • Milwaukee, WI 53212 (414) 263-8100 • UnitedWayGMWC.org

biztimes.com / 31

computer files, systems or networks and then demands a ransom payment for their return. Phishing, on the other hand, involves “spoofing techniques to lure you in and get you to take the bait,” according to the FBI. Criminals conduct phishing scams to get information from their target.

Recently, there have been more cases where people’s emails were taken over by a criminal who tricks a person into making a money transfer to the wrong account, Bong said. For example, they will get into an email account and contact a customer to say they need to pay a bill and provide a “new” bank account to send the money.

WORKING TO PREVENT THE ATTACK Before a loss can occur, Navarro says, R&R Insurance will assist with pre-loss mitigation so that if a loss should occur, it would help to lower the impact. Companies of all sizes need cyber insurance, Navarro said. Realistically, every business that has network access, or has information on customers, employees, products and vendors.

Navarro said it’s important to take into consideration what you would do if an attacker forced you to shut down your business. “All the work you have done to grow your business, and you have your business crippled likely by a foreign entity who is trying to scam you and shut

Bong

Navarro

you down,” Navarro said.

The cost for cyber insurance varies on the business and how many records it keeps. For smaller companies, it can range from $2,000 to $5,000 for an annual premium and up to hundreds of thousands of dollars per year for a large company, Navarro said.

However, requiring a company to implement multi-factor authentication and other measures to shore up its technology isn’t always an easy sell.

“The concern is that the cost of being cyber prepared is going to be high, and they are concerned that they will lose efficiency and productivity,” Senkbeil said. “I have found that in the

Senkbeil

last several years, business owners know that the risks are serious and need to do more. I have been pleasantly surprised that they have been more receptive in most recent years.”

Chortek has been an outsourced IT department for many companies and encourages its clients to be patient with their employees who may need a little more time for work with multi-factor authentication installed.

In the future, Senkbeil wants to see companies who have implemented robust protective measures to get a better rate from insurance companies.

“I think they deserve to have lower premiums. I think it’s coming,” he said. n

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CEO Q&A

SPONSORED CONTENT

SHARI BLACK CEO, Wisconsin State Fair Park BIZTIMES MILWAUKEE: How have your past experiences prepared you for this role?

SHARI BLACK: Most of my career has prepared me for this role, as well as my education and experiences I had growing up within the fair and the agriculture industry. I began showing cattle when I was 9 years old at the Waukesha County Fair. At a very young age, I became the Executive Director Waukesha County Fair and held that position for 15 years before moving to Wisconsin State Fair in 2016 as Director of Event Services. Throughout my career I served as Chief Programs Officer and now CEO. My experience with Wisconsin Association of Fairs and the International Association of Fairs and Exhibitions has helped me understand all facets of this industry.

BIZTIMES: What opportunities/challenges for you see on the horizon for your industry?

BLACK: Safety is always our top priority. This includes personal safety, ride safety and cleanliness. We learned a lot during the pandemic which allowed us to implement a number of safety measures that we have now adopted as standard protocol. The International Association of Fairs and Expos (IAFE) allows us to network with fairs from all over the world. It provides a great support network where we discuss numerous challenges that we face and the best way to approach them. Some discussions at our last convention included food sustainability, land conservation, security and keeping our staff engaged, among others. Some of ongoing challenges include staffing, increased cost of goods, supply chain issues and security concerns. But challenges always bring opportunity, and we are using these challenges to become more innovative and are looking forward to investing in new technology to help us overcome these challenges.

BIZTIMES: How has the pandemic strengthened your organization?

BLACK: In 2021 we were able to plan a fair even though we didn’t announce we were having the fair until May and everyone didn’t come back to the office fulltime until after Memorial Day. We found that our staff worked very well remotely and gave us the confidence to continue allowing hybrid work schedule if the position could support it. By cutting out commute times staff had time to complete projects more quickly. It has also helped us with staff retention as many of our employees appreciate the flexibility.

BIZTIMES: What do you see as the most important responsibility to your customers/fairgoers?

BLACK: Fairs began as a way for people to come together socially and celebrate agriculture, along with music, food and friendly competition. Our goal is to provide that same experience to our fairgoers. As more and more generations move away from farms and understanding agriculture, we have an obligation to teach them about where their food comes from and why it is so important to understand what they are putting in their bodies. Ultimately, the goals is to provide a safe, affordable and fun experience for all.

Shari Black

BIZTIMES: What will a Fair Day look like for you this year?

BLACK: We will see! I don’t know exactly what to expect as it is my first year in this role, but I am excited to take on whatever each day brings. I know each day will be different, as that is the nature of the Fair business. I look forward to seeing our staff in action, as they truly are some of the best in the business. We all work so hard to put on the best Fair possible each year, and I can’t wait to share it with everyone who walks through our gates.

640 South 84th Street • West Allis, WI 53214 (414) 266-7000 • wistatefair.com

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BUSINESS CARES:

DIVERSITY

&

INCLUSION

WELCOME TO BIZTIMES MEDIA’S BUSINESS CARES SERIES, where we bring to you a focus on Diversity & Inclusion. Diverse workplaces and work teams are more innovative, creative and better for the bottom line. We thank the 44 companies and organizations listed below for their sponsorship of this important section. Their investment reflects the level of engagement and intention these organizations are placing in diversity and inclusion. Their support also funds a D&I awareness campaign for the next month via print, digital and e-newsletter platforms. We hope you’ll support them as they join all of us in working toward a more diverse and inclusive Milwaukee and southeastern Wisconsin region.

DAN MEYER, owner, publisher, BizTimes Media KATE MEYER, owner, community engagement, BizTimes Media

34 / BizTimes Milwaukee JULY 25, 2022

Creating a better way Since our founding more than 50 years ago, Quad has been on a journey to create a better way for our employees, our clients, our communities and our world—a world in which we can do more together than we can do as individuals apart.

We are committed to creating an environment where all employees are seen, heard and valued for their ideas. At our foundation, this requires us to work together, listen to understand, learn from each other, and treat each person fairly, with dignity and respect.

Learn more about Quad’s DEI commitments in our Environmental, Social & Governance Report on Quad.com

N61 W23044 Harry’s Way Sussex, Wisconsin 53089-3995 (414) 566-6000 Quad.com

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Cristy Garcia-Thomas

Digging deeper into D&I How companies are using metrics to advance strategy

BY MAREDITHE MEYER, staff writer FOLLOWING THE SUMMER of racial reckoning in 2020, companies across the nation jumped at the opportunity to publicly condemn racism and announce new or ongoing strategies to increase representation and cultivate a culture of inclusion.

But what’s a strategy without a way to measure its progress and hold leaders accountable?

You may have heard the saying, “What gets measured gets done.”

For Oconomowoc-based Rogers Behavioral Health, it was the morning before a video went public showing the murder of George Floyd in 2020 that leaders had made a formal commitment to improve culture and explore the role of equity at the organization.

“Our plan was to take a year and really look at how best to approach this as a mental health organization, but of course, we (then) kicked into high gear and did what we could. It was more of a reactive, yet very appropriate mode for the time,” said Sue McKenzie Dicks, vice president of healthy culture at Rogers.

Over the past year, the organization has been able to move out of reaction mode to focus on its plan, defining “what it is we’re trying to do and why we’re trying to do it” and, of course, how it will be done, said Dicks.

One key D&I goal Rogers set out to achieve was to diversify executive-level leadership. Within the past two years, race and LBGTQ representation of its top 30 leaders has increased from 6% to 26%.

From a qualitative standpoint, Rogers uses an an36 / BizTimes Milwaukee JULY 25, 2022

nual employee satisfaction survey and feedback from employee resource groups to better understand the experiences and needs of employees of different backgrounds and positions of power.

But for at least one group of employees, getting an accurate read on representation and workplace engagement – and even apply-to-hire rate – has not been easy. Dicks said members of the LGBTQ population often do not disclose their identity to the company.

“I think part of that is give and take of trust … that when we ask identity questions, it’s not going to harm them it’s actually going to help,” she said.

“The notion of trust is so important to understand that we may not have the perfect measurement now because we don’t have the trust to get the information, and so giving ourselves grace to measure what we can and build trust along the way so we can measure more (in the future).”

Milwaukee-based Aurora Health Care began devising its D&I strategy about seven years ago, but it wasn’t until the merger with Advocate Healthcare in 2017 that Advocate Aurora Health established goals and metrics tied to leadership performance.

“Over the course of the last three years, we’ve seen really good progress in this particular area. But I can tell you it’s not easy,” said Cristy Garcia-Thomas, chief external affairs officer. “I can say myself, as a person of color, we’re getting recruited away from companies at a very high level especially in the last 18 months because there’s a heightened lev-

Sue McKenzie Dicks

el of commitment (to D&I) from all companies. It’s something that you have to constantly be working on day in and day out to see the type of movement that you’re trying to make.”

Advocate Aurora’s internal D&I strategy is measured across its talent pipeline, from recruitment – with a metric around interviewing diverse slates of candidates for open positions and unconscious bias training for recruiters – to retention and, ideally, promotion.

“Ultimately, we know that at our entry level workforce, we have a higher level of people of color, and we want to matriculate and have those numbers be reflected in our management numbers as well,” she said.

The disproportion of diverse entry-level and managerial employees is true on a much larger scope. A recent workforce report from asset management firm Mercer – based on data and survey responses from 52 companies across the U.S. representing more than half a million employees in total – found total exits for Black employees at the manager level was 20% compared to 12% for non-Black employees.

Mercer’s advanced statistical modeling digs deeper into other relevant factors that drive turnover, which is one significant metric that companies have largely overlooked in their efforts to close equity gaps, said Haig Nalbantain, senior partner and a founder/leader of Mercer Workforce Sciences Institute.

“Companies are really focused on hiring – they’re over-indexing, if anything, on hiring … but when we look at the other dynamics, it’s very clear that the challenge is turnover,” said Nalbantain. “You’re losing a lot of those people you’re bringing in at critical career levels and part of it is because your internal pipeline – what’s happening to those employees once they’re in the organization is not favorable enough to encourage them to stay.”

He said the message to Mercer’s global clients as well as to smaller-size businesses who are just starting on their D&I metrics journeys: “Use your data to get a wholistic vision of hiring, promotion, retention and performance rewards, and then find out if and to what extent you’re positioning your diverse talent to be successful.” n

COMMITTED TO OUR COMMUNITY We deliver value by encouraging diversity of thought, innovative approaches, purposeful collaboration, and true partnership because diverse, equitable, and inclusive practices are at the core of our company values. We believe it is our responsibility to create opportunities for entire populations to participate through supporting workforce, economic, and individual development in every community we serve.

MILWAUKEE // MADISON // CGSCHMIDT.COM

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A screenshot from the Wisconsin IRIS courses.

& IN SITY

Wisconsin LGBT Chamber’s new program aims to ease the job search

BY ARTHUR THOMAS, staff writer EVEN IN A TIGHT JOB MARKET, finding the right job at the right company can be difficult. For members of the LGBTQ community, the job search is only made more difficult by trying to find a company with a welcoming and inclusive culture where they can bring their authentic self to work.

Jason Rae, president and chief executive officer of the Wisconsin LGBT Chamber of Commerce, pointed to research from the Human Rights Campaign in 2018 that found 46% of LGBTQ workers in the U.S. are closeted at work.

He said it is a reality that also shows up in the chamber’s mentorship program for college students when mentees seem to inevitably turn to their mentor and say: “I assume when I enter the work world I have to go back in the closet.”

It may not solve all the problems that lead to someone feeling like they cannot be themselves, but the chamber’s new Wisconsin IRIS program seeks to address some of the barriers. Short for inclusive refinement of individual skills, the IRIS program is an entirely online course with five learning modules. It addresses topics like resume creation, interview preparation, soft skills, digital professionalism and searching for a job.

“What it does different than other programs is it keeps the target audience in mind,” said Momo Dahlke, AmeriCorps VISTA and IRIS program manager at the Wisconsin LGBT Chamber.

“So, we have stuff in the resume section, like, ‘Do you want to include identity experiences like volunteering with an LGBT center or working at your campus' LGBT center?’ We have a little 38 / BizTimes Milwaukee JULY 25, 2022

blurb on researching the company you're going to be interviewing to see if it’s going to be LGBT friendly and affirming towards the youth, and then we have things like the job search, how to look for jobs that are going to be LGBT affirming, how to look at job postings on Indeed and LinkedIn and kind of translate technical wording into wording that the youth understand.”

Supported by funding from Meijer and Enterprise Holdings Foundation, Rae said the ultimate goal of the program is to help get more LGBTQ workers employed at chamber members who are actively trying to recruit and retain diverse talent.

To do that, Dahlke looked into where LGBTQ youth were underserved by similar workforce development programs and then developed materials and best practices for the course, including by reaching out to chamber members and recording videos with LGBTQ professionals.

“We really wanted to showcase that there are out professionals in the world and here are some role models,” they said. “Here are some people like you that are able to be out and able to be their authentic self at the workplace.”

The IRIS program launched in June. Rae said the chamber wanted to do a soft launch of sorts during Pride Month and plans to ramp up use of it by partnering with LGBTQ centers at universities and colleges in the state as students return to campus in the fall.

While the initial course focuses on applying for a job, Dahlke wants to see future courses

addressing how to deal with workplace conflict or how to move on from a job professionally.

They had already developed a video on dealing with insensitive workplaces that was cut from the course.

“As we were working through this, I think the hardest part we discovered was trying to not have too much in there where everyone would be spending days upon days in the program, so we kind of cut it down saying, ‘Let’s start with the basics of applying for jobs and get through that part,’ and then handle a part two that is much more (focused on) that inclusive workplace,” Rae said.

He also noted there are a number of simple steps companies can take to help make their business more welcoming, starting with incorporating more gender-neutral language in job descriptions, employee handbooks and policies.

As an example, Rae said a company could use “the employee” or “the role” instead of writing “he or she.” Another example he pointed to was describing bereavement leave as for the death of a parent or child instead of mother, father, son or daughter.

“We hear from … members of the community across the board who are paying a very close eye to what companies are doing and how they're engaging,” he said. “It isn't just about changing the logo during Pride Month to a rainbow color; it’s can they see themselves reflected, can they see the values that they’re living reflected by a company.”

“While many of them may seem like quite subtle changes folks can make, when members of the LGBTQ community see those, they recognize those and can quickly see that this is a company that's living the values that we're looking for,” said Rae. n

Leadership from Northwestern Mutual’s Black Founder Accelerator and gener8tor recently welcomed this year’s cohort of Black entrepreneurs.

Fostering meaningful connections How local organizations are linking founders of color to venture capital

BY ASHLEY SMART, staff writer IT’S NO SECRET that Wisconsin continually falls behind peer states when it comes to attracting venture capital. When it comes to getting founders of color connected to VC opportunities, the stats are even more dismal. Only about 1.2% of all VC funding in the U.S. went to Black entrepreneurs in 2021, according to Crunchbase.

That’s the problem Northwestern Mutual’s Black Founder Accelerator seeks to address.

Launched in 2021 with the help of Milwaukee-based gener8tor, the 12-week program helps Black entrepreneurs in the areas of fintech, digital health, insurtech or data analytics by providing them the opportunity to pitch their business to over 70 different potential investors.

Each startup also gets a $100,000 cash investment and mentorship from a Northwestern Mutual executive mentor.

During the summer of 2020, following the murder of George Floyd, Milwaukee-based Northwestern Mutual began to look at the different ways it could further racial equality. One obvious way the company could do that was through entrepreneurship, said Craig Schedler, managing director at Northwestern Mutual Future Funds.

“Black entrepreneurs are frequently left out of this viable and most vibrant source of funding, which is venture capital,” Schedler said.

The team at Northwestern Mutual prioritized having a more intentional accelerator focused within the industries the company already invests in. That way, they could also provide the mentorship often needed by new entrepreneurs.

“We felt good about the fact that we decided to focus on the areas we know best. That’s been a

huge success for us in that regard because we really can provide specialized expertise,” Schedler said.

This year’s Northwestern Mutual Black Founder Accelerator cohort includes: Pagedip of Boulder, Colorado; Pruuvn of Atlanta; SnapRefund and Stimulus of Philadelphia; and Xcellent Life of Lexington, Tennessee. Milwaukee startup Tip a ScRxipt is a past participant.

Northwestern Mutual uses a variety of metrics to monitor the success of the accelerator, including how much follow-up funding a startup has raised, how much their teams have grown and how close they are to going to market.

“We monitor very closely how much venture capital each of the companies is able to raise. We’ve had great success in the number of companies that have been able to raise over $500,000,” Schedler said. “It’s pretty close to two-thirds. For us to have that success in the first year, we view as a real proof point of the program.”

In the future, he hopes the accelerator can become the premier program for Black entrepreneurs in the Midwest.

The Northwestern Mutual Black Founder Accelerator is not the only way founders of color can find VC opportunities. A newly launched organization, VC MKE, is serving as a connector between entrepreneurs and VC funds from across the country.

Tarik Moody, director of digital strategy and innovation at 88Nine Radio Milwaukee, serves as one of VC MKE’s five founders.

Rounding out the rest of the organization’s leadership team is Dana Guthrie, managing part-

ner at Gateway Capital; Ed Javier, entrepreneurship program director for the Wisconsin Economic Development Corp.; Maggie Fernandes, software engineer at MacGregor Partners; and Que ElAmin, co-founder of Young Enterprising Society.

The group first began discussions at the start of the year surrounding venture capital in the Midwest and how opportunities for founders of color are lacking.

“The Midwest is kind of flyover country for every type of founder, and when you add in BIPOC, people of color and women, it’s even worse.

We realized cities like Nashville, Pittsburgh and Atlanta were really trying to change the narrative and change the investments in their respective cities,” said Moody.

The group thought Milwaukee was behind the curve, leading to the creation of VC MKE. The organization provides opportunities for founders to network and meet one-on-one with national VC funds. VC MKE’s first event was held this past June during Summerfest Tech. Approximately 30 founders and 20 investors from across the country came to the inaugural event, which included an investment dinner and one-on-one interviews.

“It surprised me. It exceeded my expectations,” Moody said of the event. “The initial feedback we got was positive on both the investors’ side and the founders’ side. Just to have this in Milwaukee was a huge step forward.”

Moving forward, VC Milwaukee will continue to operate as a yearly event. The metrics VC Milwaukee is keeping track of include how many out-of-state investors come to the event and what segment of the market each startup covers.

“These founders are in business just like any other founders. This is not for charity. This is for investment,” Moody said. “They have good ideas, they have a good target market and all the same pieces that a white founder has. I don’t want these efforts to be looked at as charity.” n biztimes.com / 39

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More inclusive playing field needed for contractors of color, business leader and activist says State, county and city officials say they are working hard to improve diversity numbers

BY CARA SPOTO, staff writer WHEN THE U.S. Department of Transportation began asking federal, state and local governments to meet goals under its Disadvantaged Business Enterprise program, the idea was to increase the number of women and minority-owned businesses competing for federally funded transportation contracts.

While the federal government has largely been meeting its own DBE goals since implementing the program in 1983 – spreading its contract dollars almost evenly to an assortment of minority and women-owned firms – the Wisconsin Department of Transportation is failing to meet its DBE goals in a truly inclusive manner, according to Ugo Nwagbaraocha, president and owner of Milwaukee-based Diamond Discs International and head of the National Association of Minority Contractors Wisconsin chapter.

Although WisDOT is mostly meeting its overall DBE goals, Nwagbaraocha points to data from the past four-and-a-half years that shows the lion’s share of that money has gone to businesses owned by white or “non-minority” woman-owned firms: about 61%, or $80.2 million, of DBE dollars paid out in 2021 alone.

Of the total $132 million in DBE contracts paid out to woman and minority-owned firms last year, about 9%, or $11.5 million, went to 40 / BizTimes Milwaukee JULY 25, 2022

Black-owned businesses; Hispanic-owned firms netted $22.6 million, or 17%, of those contract dollars. Firms owned by Asian-Pacific Americans, Native Americans and Subcontinent Asian Americans received the remaining 13.5%, or $17.8 million, in commitments of the total DBE spending for the year.

“I think we can all say that was not the intent of these programs,” Nwagbaraocha said, calling the disparity in funding between non-minority women-owned firms and minority-owned firms “glaring.”

In the first half of 2022, firms owned by white women received just more than $46 million in DBE commitments, while Black-owned firms have received about $9.7 million and Hispanic-owned firms just over $2.2 million.

An activist for contractors of color, Nwagbaraocha has long lobbied to get the state to take a more active role in helping minority-owned firms better compete as both prime and subcontractors for federally funded projects.

Advocacy is especially important now, he said, as WisDOT begins to sort out how it will spend an additional $1 billion in federal formula funding as well as millions more in additional federal grant dollars as part of the $1 trillion bipartisan infrastructure deal, officially called the

Infrastructure Investment and Jobs Act. Nwagbaraocha wants to see WisDOT put a greater focus on ensuring minority-owned contractors and subcontractors have the awareness and time to effectively enter bids.

“The (data) shows me that the state of Wisconsin not only needs to be more purposeful and more intentional in its efforts, but that NAMC needs to be more involved in the planning stages,” he said.

Specifically, Nwagbaraocha would like to see more opportunities for strategic unbundling, which would give smaller contractors the ability to know about the subcontracting opportunities on prospective jobs. He also thinks more state and federal grant funding should be allocated to help ethnic chambers of commerce hire full-time staff who can stay abreast of all the contracts available to their members.

“All these people who are on the NMAC board already have full-time jobs running businesses, so it becomes crucially important to have someone in-house who knows the construction industry and can help our members compete,” Nwagbaraocha said. “Every week there are probably dozens of (public works and other committee) meetings that we are not at that we should be at.”

MAKING AN EFFORT

As for what it’s doing to increase the amount of federal contract funds flowing to non-woman, minority-owned businesses as part of its DBE goals, WisDOT’s office of public affairs noted a variety of programs aimed at increasing minority-owned firm participation in the program.

Those initiatives include mentor-protégé pairings; one-on-one business coaching; a mobilization loan guarantee program to aid DBE firms in

obtaining capital; and efforts to help DBE firms prepare the necessary reports for obtaining loans.

Agency staff pointed to partnerships with Scale Up Milwaukee to offer business development course scholarships to DBE firms and with UW-Whitewater’s Small Business Development Center to offer business development and financial reporting services to help DBE firms obtain loans. WisDOT also organizes networking opportunities for DBE firms to meet prime contractors, staff said.

Additionally, the Wisconsin Department of Administration highlighted its Supplier Diversity Program, where it employs a Minority Business Enterprise certification. According to a 2021 fiscal year report, of the $344.9 million spent in the DOT State Highway Program, $27.9 million or 8% was spent with MBEs. “In May, we announced a 6.34% total spend with MBEs and disabled veteran-owned businesses, the highest recorded share of overall state spending since the program began in 1983,” a DOA staffer wrote.

LOCAL EFFORTS

At the City of Milwaukee and Milwaukee County, where individual departments exist to

help small businesses benefit from federal, state and locally funded contracts, officials say they are always working to engage and help minority contractors.

Although it has to meet DBE goals on federally funded contracts, the city also has Small Business Enterprise goals to meet on city-funded projects, said Nikki Purvis, chief equity officer of the city’s Office of Equity and Inclusion. The city’s SBE goals are race and gender neutral.

“On an annual basis, we look to award 25% of our construction contracts, 25% of our business service contracts and 18% of our professional service contracts to SBE firms that certify with the city,” Purvis said. “That also translates to city-funded private development projects like Northwestern Mutual Tower and Commons and Fiserv Forum.”

In addition to reaching out to ethnic chambers of commerce to ensure that they know about contract availabilities, the city is wrapping up a disparity study that could lead to implementing a race- and gender-specific program. The results of the study are expected in September, Purvis said.

Lamont Robinson, director of Milwaukee County’s Community Business Development Partners, said county departments have a charge from County Executive David Crowley

to increase spending with minority- and women-owned businesses.

The group has established an equitable contracting committee that has been looking at what obstacles can be removed “to create a more diverse and inclusive bidding process” for minority contractors, said Robinson.

There has been talk of extending the deadline for requests for proposal, in order to allow firms more time to put together competitive bids for prime subcontracting opportunities.

“We know that insurance can be a barrier, so we are also considering implementing a supplemental insurance program,” Robinson said.

“We’re also working to engage with chambers, the communities, the businesses to say, ‘Let’s start fresh. We want to introduce you to all the contract opportunities that we have at the county, availabilities everywhere from the airport to the zoo.’”

Robinson also noted that WisDOT has been holding monthly meetings with stakeholders for about a year that are focused on improving minority firm involvement.

“I deem it to be a very sincere effort,” he said.

“There has been really good discussion. We know this won’t be fixed in a day. But we also want to be very transparent.” n

EVERYBODY KNOWS MATC, BUT DO YOU REALLY KNOW MATC?

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are students of color

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NOTABLE CFOs

BizTimes Milwaukee is proud to present its inaugural showcase of Notable Chief Financial Officers, spotlighting top-notch CFOs at companies and nonprofit organizations in southeastern Wisconsin. The individuals profiled here were nominated by their peers and showcase the diversity of talent in this market.

METHODOLOGY: The honorees do not pay to be included. Their profiles were drawn from nomination materials. This list features only individuals for whom nominations were submitted and accepted after a review by our editorial team. To qualify for the list, nominees must be based in southeastern Wisconsin. They must be currently employed as a chief financial officer or similar role for their company or nonprofit organization and must have impacted the region in significant ways through their professional, civic and philanthropic involvement.

BRENT ADAM

CHIEF FINANCIAL OFFICER

CHIEF FINANCIAL OFFICER

KEDER SOLUTIONS LLC & FRONTLINE COMMERCIAL REAL ESTATE LLC

BORGMAN CAPITAL

Eric Tischer, chief financial officer for both Oak Creek-based Keder Solutions and Frontline Commercial Real Estate, has succeeded in managing multiple challenging positions, according to Tom Wolff, national sales manager at Keder Solutions.

“He has streamlined the financial operations of both Keder Solutions and Frontline CRE, while both organizations have seen tremendous growth,” Wolff said. “Keder Solutions has expanded internationally and grown nearly threefold in the time he has been on board.”

During the same period, Tischer managed Frontline CRE’s 350,000-square-foot building project. The firm has added multiple locations to its stable of properties during Tischer’s tenure.

“His ability to perform his duties in two extremely divergent organizations is a testament to his tenacity and training. Very few CPAs can wear multiple hats in two very different industries and do so as well as he has done,” Wolff said.

ADVANCING INTO NEW MARKETS & DRIVING GROWTH Eric Tischer of Keder Solutions and Frontline CRE gets nominated as a 2022 CFO of The Year

42 / BizTimes Milwaukee JULY 25, 2022

ERIC TISCHER

Since joining Borgman Capital in April 2020, Brent Adam has been an integral member of the firm, a resource to junior team members and partner to his peers, says Marit Harm, fund administrator and marketing manager at Borgman.

“With Brent’s experience in mergers and acquisitions at a big four accounting firm, a venture capital fund and CFO positions at two start-ups, he brings a wealth of knowledge,” Harm said.

Joining the firm at the height of COVID-19, Adams was responsible for supervising each of the firm’s portfolio company CFOs – six at that time – helping them navigate supply chain disruptions, labor shortages and inflation.

“Most recently, Brent was instrumental in leading the financing and structuring of the largest add-on acquisition in the firm’s five-year history, with his efforts leading to the successful closing of Dairyfood,” said Sequoya Borgman, founder and managing director of the firm.

Adams has assisted with nearly 100 corporate and private equity transactions over the course of his career.

Congratulations to the BizTimes Media 2022 Notable CFOs, including our very own Brent Adam.

Thanks for all you do!

JOEL KNUDSON

JOHN HOOYMAN

JOHN LAUBER

CHIEF FINANCIAL OFFICER

CHIEF FINANCIAL OFFICER

FOUNDER

A.L. SCHUTZMAN CO.

KESSLERS DIAMOND CENTER INC.

For the past 13 years, Joel Knudson has managed the financial reporting, cost accounting, auditing, financial analysis, treasury management, business strategy and SEC financial reporting for Waukesha-based A.L. Schutzman Co. “Despite Joel’s busy schedule, he has managed to continuously invest into the local community,” said Gordon Liebl, chief executive officer of A.L. Schutzman Co. Over the years, Knudson has coached soccer and little league baseball as well as volunteered with Prevent Blindness Wisconsin, The New Berlin YMCA Wellness Center and has organized fundraisers for the Richfield Sportsman Club.

“Joel is not only reliable, he is also extremely generous with his time - something he doesn’t have much of,” Liebl said. “He has proven to be an incredible asset to our company and a true, loyal friend.”

Prior to A.L. Schutzman, Knudson served as CFO at Criticare Systems Inc. and controller at S.K. Williams Co. and Anguil Environmental Systems Inc.

As chief financial officer, John Hooyman has helped professionalize Germantown-based Kesslers Diamond Center Inc. from both a financial and an administration standpoint, says company chief executive officer Joe Gehrke.

“John is our first ever full-time CFO, so there was quite a bit of adjustment for an entrepreneurial-led organization to evolve the finance function. He took the time to get to know the culture of the company and now, four years later, is a lead driver and advocate for the culture,” Gehrke said.

“In addition, John has taken real leadership in understanding the nuances of being an ESOP and has also taken initiative within the broader ESOP community by establishing a group of local ESOP CFOs for a regular meeting to discuss business challenges,” he added.

“As an ESOP, having a strong financial leader at our company allows us to balance the growth of the company while maintaining financial flexibility to handle our obligations to our former shareholders.”

LAUBER BUSINESS PARTNERS John Lauber has served as contract chief financial officer to Milwaukee-based Northwest Side Community Development Corp. for five years through Lauber Business Partners, which he launched as LauberCFOs in 1986. At NWSCDC, Lauber has managed a portfolio of highly technical federal grants.

“Nonprofit accounting is not for the faint of heart,” said Andrew Haug, senior development manager at NWSCDC. “For five years, John has guided NWSCDC with strategic financial counsel as we have grown significantly. From restricted federal grants to revolving loan funds to program investments from banks and financial institutions, John has helped NWSCDC expertly manage our accounts and consistently achieve clean audits.”

“John’s financial expertise has helped launch NWSCDC into a new level, as we leverage our assets to grow our revolving loan portfolio,” said Willie Smith, executive director at NWSCDC. “His diligent work allows us to expand our impact in Milwaukee’ northwest side, promoting investments and growing jobs.”

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NOTABLE CFOs

JACKIE CARTER

MICHAEL GRIFFIN

MARK GERKE

FINANCE & ADMINISTRATION OFFICER

CHIEF FINANCIAL OFFICER

CHIEF FINANCIAL OFFICER

JP CULLEN

WATERSTONE BANK

PORT MILWAUKEE For the past four years, Jackie Carter, finance and administration officer of Port Milwaukee, has been a member of the port’s senior management team, offering guidance on policy, oversight and administration across the port’s work portfolio.

“Ms. Carter brings a dynamic personality, moral character, intellect, organizational and strategic skill and passion for community service into the chief finance officer role,” said Adam Tindall-Schlicht, director of Port Milwaukee.

“At Port Milwaukee, Ms. Carter’s contributions have been invaluable.

Ms. Carter has assumed new and more multifaceted responsibilities with abandon, becoming the definitive financial, budgetary and personnel expert relied upon by me and the Board of Harbor Commissioners, the governance body which oversees the Port’s work,” Tindall-Schlicht added.

He often describes Carter as the organization’s “right hand woman,” helping to grow the port into a more modern, strategic and internationally facing economic entity of the Great Lakes region.

Michael Griffin has been the chief financial officer for JP Cullen since 2017. He is responsible for all finance and accounting along with risk management, information technology and human resources.

“Mike is a critical member of the executive team, helping JP Cullen shape key policies,” said George Cullen, co-president of JP Cullen.

Griffin is a member of the strategic planning team and a leader of the COVID-19 Task Force Team, helping JP Cullen develop protocols to keep employees safe along with keeping the company moving forward on critical construction projects.

“Mike joined JP Cullen after over a decade in the public accounting realm and what impresses me the most about him is his willingness to learn the critical aspects of success for a construction business,” said Cullen. “In his close to five years here, he has not only demonstrated his deep understanding of these areas but is also a crucial leader in helping our company achieve success.”

Mark Gerke, chief financial officer at WaterStone Bank, has led numerous efficiency measures by incorporating new technologies where they can benefit the customer and assist the organization, according to colleagues.

“He continues to focus on future financial objectives and reviews multiple scenarios for management to collaborate and develop growth plans,” said Emily Gillingham, community relations coordinator at WaterStone Bank. “Mark is known to take time to listen to any employee no matter their role in the company. He works hard to get to know the individuals on his team and understand their needs both inside and outside of work.”

“He has helped lead the company to record profits the last two years.

He does so by providing balance in his interactions with employees, customers, and investors. Mark exhibits the utmost in moral integrity,” said Doug Gordon, chief executive officer at WaterStone Bank.

Gerke also serves on the advisory board for Best Buddies Wisconsin and is on the FHLB Chicago Depository Member Advisory Committee.

“Ms. Carter is simultaneously ambitious and focused at work as well as in the greater Milwaukee African American community,” said Tindall-Schlicht.

OUR CONGRATULATIONS TO JACKIE Q. CARTER, FINANCE AND ADMINISTRATION OFFICER

Port Milwaukee proudly celebrates your recognition as a BizTimes Notable CFO. Thank you for your dedication, leadership and many invaluable contributions to the Port and to international commerce!

VISIT PORTMILWAUKEE.COM PORT@MILWAUKEE.GOV

44 / BizTimes Milwaukee JULY 25, 2022

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JUAN RUIZ

KATIE DILLOW

LIZ PALAZZARI

DEPUTY DIRECTOR / CHIEF FINANCIAL OFFICER

VICE PRESIDENT OF FINANCE AND ADMINISTRATION

CONTROLLER

UNITED COMMUNITY CENTER

MARCUS PERFORMING ARTS CENTER

Juan Ruiz has served as the deputy director and chief financial officer of United Community Center in Milwaukee for nearly 30 years.

According to UCC executive director, Laura Gutierrez, Ruiz has been instrumental in budgeting and financial management for the organization.

“In the last 10 years, UCC’s budget has almost doubled and the varied funding sources from local, federal, state, county, corporation, and foundations creates a complex funding stream,” Gutierrez said.

“Juan takes this in stride and along with the UCC leadership team ensures compliance and financial responsibility in all aspects of the agency.”

In addition to his role as CFO, ensuring UCC consistently has a balanced budget and clean audit, Ruiz oversees UCC administration including facilities, security and technology.

“He helps to ensure UCC remains financially stable while maintaining safety and employee productivity. Throughout his tenure, Juan has also participated in the design and expansion of more than $75 million in building facilities,” Gutierrez said.

SOMMERS AUTOMOTIVE

In the short time she has been with the Marcus Performing Arts Center, Katie Dillow has been a true change agent, according to Ken Harris, the center’s vice president of venue operations.

“Her vast knowledge of the not-for-profit business world has been a great asset to the center as we are working to transition our business model to become one of the premiere arts and cultural venues in southeastern Wisconsin,” said Harris.

Dillow has helped translate work models that have been used during the past 53 years to a new methodology based in finances and staff management.

“Katie leads the charge on many levels including finance, strategy, human resources and process mapping,” Harris said.

Before she began her role with the Marcus Center in December of 2021, Dillow was CFO and vice president for finance and administration at Alverno College, where she focused on maturing financial operations and building internal collaboration.

Liz Palazzari, controller at Sommers Automotive, has long demonstrated what it takes to be a great CFO, colleagues say.

“Her dedication through the pandemic was amazing. Despite all the demands on her time, she was willing to assist anyone who needed her expertise. I have a ton of respect for Liz,” said Timothy Itzin, CPA and shareholder at Vrakas CPAs + Advisors.

Prior to joining Sommers Automotive, Palazzari was chief financial officer at Reliable of Milwaukee. According to company CEO Mark Blutstein, she was a leader both to her department and the company as a whole.

“She provided encouragement, continuous support, and inspiration to all while maintaining integrity. Liz is always open to listening to a perceived challenge and reframing it so others can see it from a different angle,” said Blutstein.

Palazzari is a member of Executive Agenda in Brookfield and has served as treasurer for the Whitman Middle School PTA and the Wauwatosa PTA Council.

Dillow also currently serves as the vice president of programs for Professional Dimensions.

S

SHELDON OPPERMANN CHIEF FINANCIAL OFFICER AND GENERAL COUNSEL

NEW LAND ENTERPRISES When Sheldon Oppermann joined New Land Enterprises, he was instrumental in streamlining the financial, accounting and reporting processes.

In the subsequent two years, the chief financial officer and general counsel elevated property management by significantly improving quality and customer feedback within the maintenance department, standardizing the budgeting and financial reporting structures, and elevating occupancy and online reviews to record highs, says Tim Gokhman, managing director at New Land.

“With those successes came the best financial performance for the company,” Gokhman said. “This past year, he has also created a separate asset management department, improving investor reporting and management. He recently finished strategic planning for the next five years, envisioning a world-class scaled, supportive and sustainable organizational structure.”

“Sheldon has been the most transformative individual for us,” he added. “His impact is visible through literally every department in the company, bringing structure, focus, and energy. What amazes me is that along with discipline and work ethic, he also has such compassion and support for every employee.”

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Sheldon Oppermann Notable CFO Trusted leader Badass attorney Radish eater Extraordinary manager Architecture savant Champion for Milwaukee Highly effective facilitator The glue that holds it all together Is there anything he can’t do?

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biztimes.com / 45

NOTABLE CFOs

MICHELLE PALMQUIST CHIEF FINANCIAL OFFICER

HYDRO-THERMAL CORP. Colleagues at Waukesha-based Hydro-Thermal Corp. say that chief financial officer Michelle Palmquist is a hands-on and holistic leader that balances short-term goals with long-term vision.

“She sets the pace for the executive team by demonstrating best practices herself and modeling that to her accounting, HR and IT team and teams she supports. When we are strategic planning, she helps to organize, plan, set priorities, communicate and take feedback, and think outside the box with complex needs,” said Jim Zaiser, president and CEO of Hydro-Thermal.

“Michelle is probably the most organized person I know. But she is most effective because she knows when to push and when to lend a helping hand,” said Zaiser. “Michelle has taken it upon herself to model the culture of our company and demonstrate behavior that is most effective in corporate detail, ethics, and a sense of continuous improvement.

“She refuses to accept good enough or procedures because that’s the way we ‘always have done them.’ Instead, she revolutionizes business methods and then finds more gain through always diving deeper into detail,” he said.

STEVE MARSH

SUSAN LANDRY

SENIOR VICE PRESIDENT OF FINANCE AND CHIEF FINANCIAL OFFICER

VICE PRESIDENT AND CHIEF FINANCIAL OFFICER

WISCONSIN CENTER DISTRICT

MILWAUKEE WORLD FESTIVAL INC.

Steve Marsh was one of the first hires Marty Brooks made to the leadership team when he began his role as president and chief executive officer in 2018.

Marsh assessed the district’s financial review processes and procedures and turned the reporting and development of departmental information into relevant analytics. As part of the WCD leadership team, Marsh participated in executive leadership training, corporate culture redefinition and building brand ambassadorship.

On April 2, 2020, despite COVID-19, the WCD Board authorized WCD to move forward with a $420 million convention center expansion.

Marsh led a project financing team that included representation from Baird, Morgan Stanley and the state of Wisconsin.

WCD broke ground on the expansion on Oct. 28, 2021. The project will double the convention center’s square footage.

“In four short years, Steve has performed exceptional work in not just creating internal processes that allow our work to be trusted and transparent, but also in allowing me and the WCD to take strategic risks,” Brooks said.

“I had the pleasure of meeting Sue when I was the treasurer of one of the ethnic festivals,” said Charlotte Cannon-Sain, executive director of COA Youth & Family Centers. “I had never run a festival before, and I asked for help expecting to get maybe an accounting intern or assistant but the help I received came directly from the CFO, Sue Landry.”

“She started from scratch and walked me through every component of running a successful festival, and I can still tell you everything you need to know about rain insurance. She has been a valued friend ever since,” said Cannon-Sain. “I can only imagine what she had to do to help navigate the team financially during COVID. Summerfest still rules because Sue is providing the over-the-top financial leadership.”

H O W S H E LEADS

Congratulations to Michelle Palmquist on being recognized as a Notable CFO Michelle’s finance knowledge, leadership, and strategic direction has set a new path for Hydro-Thermal. We are so thankful for your commitment and professionalism.

While Susan Landry, vice president and chief financial officer, works primarily in the background of Milwaukee World Festival Inc. and Summerfest, she has been crucial to the festival’s success, according to colleagues.

Celebrate your She-Roes HOW SHE LEADS

Sponsored Content

Becky Alsup, Kamela Goodwyn & Kelly J. Dries Manufacturing, Construction and Transportation Pathway Dean; STEM Pathway Dean; Healthcare Pathway Dean; Milwaukee Area Technical College

THE PATHWAY TO LEADERSHIP THREE DYNAMIC WOMEN are leading the way at Milwaukee Area Technical College as deans of the school’s Academic and Career Pathways, which offer students a dedicated team, resources and guidance tailored to their future profession.

Each dean leads the Pathway, which can include over 100 staff and faculty as well as hundreds or thousands of students.

Kamela Goodwyn, Ph.D., MATC dean of the STEM Pathway, guides through the humility of a learner. In her words, every day is an opportunity for growth. Her democratic and strategic leadership style incorporates the expertise of her faculty and staff teams to advance STEM initiatives, including greater representation of women and people of color in the industry.

Hydro-Thermal is the thought leader in fluid processing and manufacturer of steam injection heating systems that make food, beverage, and industrial manufacturing companies more effective and efficient. We harness the power of steam to expand what is possible for our customers – delivering innovation that empowers them with more control, more value, and more confidence.

“To lead tomorrow, we must learn today,” said Dr. Goodwyn. “Learning in my position is multifaceted.

Every day I am learning from my team, my industry’s trends and myself.”

Kelly J. Dries, Ph.D., MATC dean of the Healthcare Pathway, understands that it takes consistent energy and charisma to lead. Her consistency as a leader helped the faculty, staff and students in the Healthcare Pathway get through the demands of the pandemic.

“I draw energy from my team,” Dr. Dries said. “I look to them for inspiration. To be that transformational leader, you must find your team’s passions and gifts. There is energy to that.”

Becky Alsup has been in her role as dean of the Manufacturing, Construction and Transportation Pathway for nearly two years, and has an extensive background in manufacturing, a traditionally male-dominant industry.

Showcase your company’s commitment to leadership diversity in this special advertising section.

“At MATC, I feel supported for who I am and what I contribute, not based on my gender,” Alsup said. “Having been in manufacturing, I’m often the minority. I’ve found that you have to be strong and be your authentic self.”

Through intention, the leaders at MATC are transforming their community. n

Deans Alsup, Goodwyn and Dries guide MATC’s work to transform the community through high-quality, affordable education.

Milwaukee Area Technical College matc.edu | (414) 297-6282

SPACE: August 3, 2022

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46 / BizTimes Milwaukee JULY 25, 2022

MATERIALS: August 5, 2022

Reach out for more information or to reserve your space today: contact Linda Crawford at (414) 336-7112 or advertise@biztimes.com

CONGRATULATIONS!

Sue Landry

2022 BizTimes Milwaukee Notable CFOs

Thank you for your leadership and commitment to Summerfest, Milwaukee’s ethnic and cultural festivals and Henry Maier Festival Park From your family at Milwaukee World Festival, Inc.

Cut through the noise.

Helping CEOs survive and thrive in challenging times

Vistage is the one source you can trust for the latest, most helpful resources for leading in challenging times.

Learn more at: vistage.com

Right now, it must feel like your leadership is being tested in ways you couldn’t have imagined. We understand. For 60+ years we’ve been coaching CEOs and business owners through the best and worst of times. And through it all, our proven-approach to decision-making has helped leaders excel.

It’s the same time-honored approach that our members used during the Great Recession to grow their companies while other small and midsize businesses struggled to stay afloat.

Consider what it would mean to you to have this kind of support right now.

*Vistage CEO member companies who joined in 2006-2008 and were active members in Feb, 2010. CAGR for Vistage member companies calculated for period covering year prior to joining Vistage through 2009. CAGR for D&B U.S. companies based on 2005-2009 revenues, weighted to match Vistage company distribution per year during same period. All companies had >=$1M annual revenue, >=5 employees.

Vistage: 1,265 companies. D&B: approximately 1M U.S. companies.

biztimes.com / 47

Strategies ECONOMY

Stimulus hangover crashes CEO confidence IT’S HARD TO THINK of the COVID-19 pandemic as “the good old days.”

But from a purely economic standpoint, once the lockdowns passed and vaccines kicked in, it was. Now, however, the accelerated disruption of the pandemic has led to compressed volatility in the economy. A hangover effect has hit CEOs. Vistage’s Q2 2022 CEO Confidence Index fell to 69.0, a 15-point drop from Q1 2022 and a whopping 39.8-point drop below Q1 2021 (the index’s highest reading since 2005).

When asked to describe their biggest business challenges, hiring/retention, inflation and supply chain topped the lists of the more than 1,500 small and midsized business CEOs that Vistage surveyed from across the U.S. HIRING/RETENTION THE BIGGEST CHALLENGE Despite gloomy economic data and widespread recession fears, hiring and retention remain the top business challenge. Of the 86 Wisconsin CEOs surveyed in the Q2 2022 Vistage CEO Confidence Index, 43% expect to hire more employees in the year ahead, and 48% noted they’ve already hired more workers in the first half of this year. 52% expect the number of employees to remain the same, as leaders work to keep their hard-earned talent on staff.

The talent wars are persisting, just a little less fiercely. 65% of Wisconsin CEOs say hiring challenges are impacting their ability to operate at full capacity. As a result, 79% have boosted wages, 80% 48 / BizTimes Milwaukee JULY 25, 2022

are investing in employee development and 67% are allowing remote work options.

Regardless of how the economy swings, hiring and retention will remain a top concern. The “Great Resignation” has become the “Big Upgrade” as workers across the board seek an improved work experience. While the feverish pace of hiring will slow, the significance of employee retention will only grow because the workforce has options.

INFLATION EATS AWAY AT CEOS’ CONFIDENCE Inflation has steadily risen from zero in June of 2020 to today’s 9.1%. Once again, the accelerated disruption of the pandemic results in compressed volatility. Of Wisconsin CEOs surveyed, 93% cited increased wages and compensation as the top driver of rising costs. Close behind: higher prices from vendors (86%), higher energy prices (74%) and higher cost for goods and materials (81%). The result is the rising cost of everything, from an “added fuel surcharge” on bills to skyrocketing prices at the grocery store. 85% of Wisconsin CEOs surveyed will raise prices again in the year ahead.

The hangover from the massive stimulus of money pumped into the economy during the pandemic has not yet run its full course. But over time, demand will slow just as supply catches up.

Increased costs to attract and retain talent and volatility of crude oil supply and price will continue to stoke inflation.

SUPPLY CHAIN ISSUES PERSIST Availability of components/raw materials, slow deliveries and transportation issues are the key drivers behind supply chain business challenges, all of which contribute to inflation as costs rise across the supply chain. While far from the rhythm of a predictable pre-pandemic world, the supply chain is slowly healing, according to 51% of Wisconsin CEOs. But 28% still see it getting worse.

The improving supply chain still has a lot of work to re-establish consistency and confidence.

Recent lockdowns in China and the disruption of manufacturing and transportation will send more ripples of volatility through the system. Slowing demand will relieve some of the pressure as global demand steadies and global economies slow. Continued improvement will reduce some of the inflationary pressure driven by the supply/demand continuum.

The disruption accelerated by the pandemic has taken us from the good old days to a rapidly shifting, unpredictable, post-pandemic environment. We’ve entered a new reality where the bar for expected economic activity must be reset.

The business classic “Who Moved My Cheese?” tells the story of two mice. One keeps looking for the cheese in its usual spot. The other realizes the cheese is gone and looks elsewhere.

In today’s business world, the cheese has moved. CEOs would do well to follow the core message of the book: Adapt quickly or be left behind. n

JOE GALVIN Joe Galvin is chief research officer for Vistage Worldwide and can be reached at research@vistage.com. For more reports and insights, or to connect with a Vistage chair, visit vistage.com/research-center.

Marketplace

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GET THE WORD OUT! News? Press Releases? Awards?

Show them off in BizTimes’ new BizUpdates section.

Submit your company news at biztimes.com/bizconnect

SHARE YOUR PRODUCT/SERVICE OR ADD YOUR BUSINESS CARD

ADVERTISE IN THE MARKETPLACE SECTION TODAY! Contact Advertising Sales for rates and specs. advertise@biztimes.com or 414-336-7112

biztimes.com / 49

Marketplace BIZ PEOPLE

Advertising Section: New Hires, Promotions and Board Appointments

BANKING

BANKING

Chase names new Executive Director, Treasury Sales Management Officer

Chase is pleased to announce the hiring of Heather Miller who has joined the Midwest Treasury Sales team as Executive Director, Treasury Management Sales Officer covering the Wisconsin market. She will work with clients and prospects across the state, including Southeast Wisconsin/ Milwaukee, Fox Valley and Madison areas.

Heather has 19 years of banking experience with roles in credit and banking before moving into treasury for the last 14 years. She holds a BSBA in Accounting from Central Michigan University.

EDUCATION

HUMAN RESOURCES Greenwoods State Bank announces addition of Senior Vice President Wendy Sowinski

Wendy Sowinski recently joined Greenwoods State Bank and will serve as Senior Vice President, Director of Commercial and Industrial Lending. With over twenty years of banking experience, Wendy is looking forward to leading efforts to provide Southeastern Wisconsin companies with access to capital through a full suite of commercial loan products and related treasury services.

Contact Wendy for your commercial lending needs today by calling 262-719-5231.

NONPROFIT Vincent Lyles Brings Expertise to MyPath Board of Directors

MyPath, a provider of specialized education and support services for high-need individuals, announced that Vincent Lyles has been named to its Board of Directors. Vincent Lyles is currently System Vice President of Community Relations at Advocate Aurora Health. He previously served as the President and CEO of Boys & Girls Clubs of Greater Milwaukee. Lyles received a certificate in nonprofit management & leadership from Harvard Business School and served on the boards of organizations including Marquette University, BMO Funds, Badger Mutual Insurance, Near West Side Partners and more.

Siebert Lutheran Foundation names Sarah Gilday as Director of Philanthropy

Sarah Gilday will lead the Siebert Serves initiative launched in 2019 to help Christians maximize their life’s impact through customized philanthropy management services.

Gilday has worked in the nonprofit sector for over 20 years. Most recently, as Executive Director of the Adult Literacy Center of Ozaukee County and Chief Development Officer at Sojourner Family Peace Center. “We are excited to welcome Sarah to Siebert,” said Charlotte John-Gomez, President.

“Sarah is the ideal person to help Siebert and donors maximize our collective philanthropic impact in the Lutheran community.”

Jay D. Rosencrantz named Chief Strategy Officer for Pappas DeLaney

HUMAN RESOURCES

Heather Forston Alberti Named CEO of Pappas DeLaney

Rosencrantz has been named Chief Strategy Officer for Pappas DeLaney, an executive search, talent development and coaching firm based in the Milwaukee area. Rosencrantz has more than 30 years of experience and joined the firm in 2013. He was previously Managing Director at Pappas DeLaney. Prior to joining Pappas DeLaney, he held senior leadership positions with M Group Holdings and Right Management. Pappas DeLaney works nationally with medium to large businesses and corporations in virtually every market segment, including food and beverage, professional services, manufacturing and healthcare.

Heather Forston Alberti has been named CEO of Pappas DeLaney, an executive search, talent development and coaching firm. The past few years, Pappas DeLaney has been on an accelerated growth trajectory, expanding into new markets and industry segments. Working with the executive team, Alberti will manage the implementation of a bold vision to propel the firm into its next growth phase. Alberti has more than 25 years of industry experience and has been with Pappas DeLaney since 1999.

BANKING

FINANCIAL SERVICES

North Shore Bank names Michael Murphy as new VP of Consumer Lending

North Shore Bank today announced the promotion of Michael Murphy to VP of consumer lending. Murphy has been in the banking industry for over 25 years, serving most recently as assistant vice president, regional sales manager at North Shore Bank.

NONPROFIT

Pappas DeLaney works nationally with medium to large businesses and corporations in virtually every market segment.

Waukesha State Bank hires Commercial Banking Officer

Waukesha State Bank has hired Erik Doucette as commercial banking officer. In this role, Erik will be responsible for prospecting, developing and managing commercial loan portfolios. He has 30 years of broad financial experience.

NONPROFIT Siebert Lutheran Foundation promotes Kalyani Grasso to Director of Communications

Along with serving as Program Officer, Kalyani Grasso now leads the foundation’s communication strategies while promoting Siebert Serves— an initiative that maximizes donor impact through customized philanthropy services and innovative strategies.

Siebert Lutheran Foundation promotes Michelle Burmeister to Program Director

In this new role, Michelle Burmeister will lead the Siebert Lutheran Foundation’s grantmaking strategies, goals, and activities.

She will also foster collaborations & facilitate knowledge sharing to bring more resources to Siebert’s grantee partners.

To place your listing, or for more information, please visit biztimes.com/bizconnect

50 / BizTimes Milwaukee JULY 25, 2022

BIZ UPDATE LEGAL SERVICES

LEGAL SERVICES

Ryan T. Duffy joins von Briesen & Roper, s.c.

Ryan T. Duffy joined the Milwaukee office of von Briesen & Roper, s.c. Duffy focuses his practice on litigation, collections and community association law. He received a J.D. and B.A. from Marquette University.

LEGAL SERVICES

Ryan P. Heiden has been promoted to Shareholder at von Briesen & Roper, s.c.

Ryan P. Heiden is a member of the Government Law Group in the Milwaukee office.

He focuses his practice on school law and public sector labor and employment including pupil issues, expulsions, Open Meetings and Public Records Laws.

LEGAL SERVICES

Trace P. Hummel has been promoted to Shareholder at von Briesen & Roper, s.c.

Derek J. Waterstreet has been promoted to Shareholder at von Briesen & Roper, s.c.

Hummel focuses his practice on commercial and contract litigation, including lease disputes, boundary disputes, water litigation, and construction defects. He also works with residential and commercial real estate owners on real estate projects.

He focuses his practice on commercial, real estate and construction related litigation matters, including contract and general business/partnership disputes, landlord-tenant matters, residential and commercial construction and environmental issues.

MANUFACTURING

TECHNOLOGY

Tom Marry named President of Charter Steel

Tom Marry has been named President of Charter Steel, a leading provider of quality wire rod and special bar quality (SBQ) products with operations in Wisconsin and Ohio. In this role, he will be responsible for continuing Charter Steel’s growth.

CREATIVE BUSINESS INTERIORS NAMED MILLERKNOLL CERTIFIED DEALER As of June 1, Creative Business Interiors is officially a MillerKnoll authorized dealer. The design build furnish firm now represents the two most iconic brands in commercial furniture design: Herman Miller and Knoll. This historic merger enables Creative Business Interiors to deliver curated interior solutions through their comprehensive services and expanded product line.

MillerKnoll, one of the largest commercial furniture design companies in the world, is positioned to catalyze the transformation of the industry.

Guided by a shared vision and a steadfast commitment to design, MillerKnoll innovates and designs for the future while contributing to a more equitable and sustainable environment for all.

At Creative Business Interiors, our Experts at Work provide skilled services in interior design, construction, painting, commercial furnishings, and facility maintenance. Now in partnership with MillerKnoll, we provide a deeper offering of brands, technology, and innovation for clients.

Zach Deprey promoted to VP of Technical Operations.

Deprey has been promoted to VP of Technical Operations for Source One Technology.

Deprey, who joined the Brookfield-based IT Services firm as a Network Engineer in 2016, will lead a growing team of Senior Network Engineers serving Wisconsin.

GET THE WORD OUT! News? Awards?

Press Releases?

Show them off in BizTimes’ new BizUpdates section.

Submit your company news at biztimes.com/bizconnect

BizPeople Highlight a new hire, promotion or accolade and share it with readers throughout southeastern Wisconsin.

Visit biztimes.com/bizconnect to submit your news!

biztimes.com / 51

BizConnections VOLUME 28, NUMBER 7 | JUL 25, 2022

GLANCE AT YESTERYEAR

126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120 PHONE: 414-277-8181 FAX: 414-277-8191 WEBSITE: www.biztimes.com CIRCULATION: 414-336-7100 | circulation@biztimes.com ADVERTISING: 414-336-7112 | advertising@biztimes.com EDITORIAL: 414-336-7120 | andrew.weiland@biztimes.com REPRINTS: 414-336-7100 | reprints@biztimes.com

PUBLISHER / OWNER Dan Meyer dan.meyer@biztimes.com

SALES & MARKETING

DIRECTOR OF OPERATIONS Mary Ernst mary.ernst@biztimes.com COMMUNITY ENGAGEMENT / OWNER Kate Meyer kate.meyer@biztimes.com

EDITORIAL EDITOR Andrew Weiland andrew.weiland@biztimes.com MANAGING EDITOR Arthur Thomas arthur.thomas@biztimes.com ASSOCIATE EDITOR Maredithe Meyer maredithe.meyer@biztimes.com REPORTER Ashley Smart ashley.smart@biztimes.com

A glimpse of a historic State Fair This 1948 August Riemenschneider photo shows the Sears, Roebuck and Co. tent at the Wisconsin State Fair. The fair ran from Aug. 7 to Aug. 29 that year and was attended by 1,786,818 people, making it the most attended State Fair as Wisconsin marked its centennial.

— Photo courtesy Milwaukee Public Library/Historic Photo Collection

COMMENTARY

Kohl’s store offers chance to revitalize downtown retail BEFORE FREEWAYS and suburban shopping malls, and way before online retail, downtown Milwaukee – and the downtowns of other cities like it in America – had sidewalks crowded with pedestrians and a large array of shopping options.

T.A. Chapman operated a department store on Wisconsin Avenue downtown from the late 1800s until it closed in 1981.

Gimbels opened a department store on Wisconsin Avenue in 1887. In the 1980s, it was acquired by Marshall Field’s. That store closed in 1997.

Boston Store also had a department store on Wisconsin Avenue, from 1897 until 2018 when its parent company, The Bon-Ton Stores Inc., went out of business.

Grand Avenue Mall, which opened in 1982 with Gimbels and Boston Store serving as its anchor stores on the east and west ends of the 52 / BizTimes Milwaukee JULY 25, 2022

mall, started strong but later declined severely and is now being redeveloped into The Avenue, which has a food hall, office space and apartments, but far less retail space than the mall had.

Downtown Milwaukee’s retail heyday is long gone. But perhaps it’s on the verge of an upswing.

From 2010 to 2020, downtown Milwaukee and some of its surrounding neighborhoods were among the fastest growing places in the state. The greater downtown area, including the Lower East Side, Historic Third Ward and northern portion of Walker’s Point, had a population of 37,563 in 2020, according to U.S. Census Bureau data.

Downtown Milwaukee’s population has grown as its retail offerings have waned and consumers have increasingly shifted toward online shopping. But at some point, the population growth of the area should attract more stores.

That’s why plans by Menomonee Fallsbased Kohl’s Corp. to open a store in the former Boston Store space downtown are so interesting. With its headquarters and most of its stores in the suburbs, Kohl’s has long resisted placing a store in downtown Milwaukee.

The company’s move to finally open a store there is an intriguing shift. Under pressure from

REPORTER Cara Spoto cara.spoto@biztimes.com

DIRECTOR OF SALES Linda Crawford linda.crawford@biztimes.com SENIOR ACCOUNT EXECUTIVE Christie Ubl christie.ubl@biztimes.com ACCOUNT EXECUTIVE Paddy Kieckhefer paddy.kieckhefer@biztimes.com ACCOUNT EXECUTIVE Dylan Dobson dylan.dobson@biztimes.com ACCOUNT EXECUTIVE Christy Peterson christy.peterson@biztimes.com SALES ADMIN Gracie Schneble gracie.schneble@biztimes.com

ADMINISTRATION ADMINISTRATIVE COORDINATOR Sue Herzog sue.herzog@biztimes.com

PRODUCTION & DESIGN GRAPHIC DESIGNER Alex Schneider alex.schneider@biztimes.com ART DIRECTOR Shelly Tabor shelly.tabor@biztimes.com

Independent & Locally Owned — Founded 1995 —

some investors to improve its performance, Kohl’s leadership recently considered a sale of the company but decided against it, opting instead to purse their turnaround strategy. That strategy includes plans for about 100 small-format stores at about half the size of a typical 80,000-square-foot Kohl’s store.

The idea behind the smaller stores is to use them to enter markets, like downtown Milwaukee, that the company wasn’t able to serve with its larger stores.

This move is a huge vote of confidence for downtown Milwaukee by Kohl’s.

It will be very interesting to see how this store performs. If it does well, it could be a turning point for downtown Milwaukee retail and more stores might follow suit and open locations there.

But if downtown residents don’t patronize their neighborhood Kohl’s store, it won’t survive and other retailers won’t be interested in coming. n

ANDREW WEILAND EDITOR

P / 414-336-7120 E / andrew.weiland@biztimes.com T / @AndrewWeiland

NONPROFIT MEDICAL COLLEGE RECEIVES $50 MILLION GIFT FROM KERN FAMILY FOUNDATION The Kern Family Foundation pledged $50 million to the Medical College of Wisconsin, in its second major philanthropic contribution to MCW in the past five years.

The gift builds upon $37.9 million given by the Waukesha-based foundation to MCW in 2017 to establish the Robert D. and Patricia E. Kern Institute for the Transformation of Medical Education. The institute is housed on MCW’s Wauwatosa campus and focuses on developing new methods for training medical students.

The new $50 million gift will advance the efforts of the institute as well as the Kern National Network for Caring and Charac-

ter in Medicine, which launched alongside the institute in 2017 and now includes MCW and six other founding member schools.

“This transformational investment will help us reshape the profession of medicine to benefit learners, physicians, and their patients,” said Dr. John Raymond, Sr., president and chief executive officer of MCW. “The generosity and leadership of the Kern Family Foundation supports our shared commitment to driving fundamental changes to how patients and families receive medical care and moves us further toward our goal of advancing health for all through human flourishing, character and caring.”

— Maredithe Meyer, staff writer

nonprofit

SPOTLIGHT

A MER IC A N HE A R T A SSOCIATION – W ISCONSIN 1555 N. River Center Drive, Suite 211, Milwaukee, WI, 53212 heart.org Facebook: American Heart Association-Wisconsin Twitter: @AHAWisconsin | Instagram: ahawisconsin

c alendar The Salvation Army of Milwaukee County will host its third annual Civic Luncheon on Friday, July 29 at American Family Field. The event, themed “Love Beyond the Bases,” raises funds for the organization’s local programs and services.

Milwaukee Public Market will host its MKE CHEF Collaboration Dinner on Sunday, Aug. 21. The event will feature a seven-course dinner prepared by seven area chefs and culinary teams, with proceeds benefiting seven charitable organizations: This Time Tomorrow Foundation; Community Liver Alliance; Juvenile Diabetes Research Foundation; Urban Ecology Center; Wellpoint Care Network; Sojourner Truth House; and Stryve365.

Betty Brinn Children’s Museum will host its annual fundraiser, Camp Brinn, on Thursday, Sept. 15 at Greenhouse No.7, on the Mitchell Park Domes campus in Milwaukee. The glamping-inspired event raises funds for the museum and its mobile museum program, the Wonder Wagon.

D O N AT I O N R O U N D U P The new Milwaukee-based Ruth Foundation for the Arts awarded a total of $1.25 million in initial funding to 78 nonprofit arts organizations across the country, including, locally, Arts @ Large and Milwaukee Film Festival. | The International Association of Sheet Metal, Air, Rail and Transportation workers helped raise $33,000, including a $5,000 donation from Milwaukee Tool, for the Association for the Rights of Citizens with Handicaps and its annual summer camp program. | AARP Wisconsin awarded a $25,000 Community Challenge grant to the City of Milwaukee Neighborhood Improvement Development Corporation’s Healing Spaces Initiative to repurpose vacant lots into public spaces. AARP awarded a second Community Challenge grant for $15,000 to Milwaukee Turners Inc. to fund programs encouraging community engagement, physical movement and healthy eating habits for older adults.

Year founded: 1924 Mission statement: To be a relentless force for a world of longer, healthier lives Primary focus of your nonprofit organization: Every person deserves the opportunity for a full, healthy life. As champions for heart equity, by 2024, the association will advance cardiovascular health for all, including identifying and removing barriers to health care access and quality.

Executive leadership: Katie Connolly, executive director Board of directors: Erin Lenzow, chair; Dr. Tom Wozniak, president Is your organization actively seeking board members for the upcoming term? No Key fundraising events: Heart Challenge; Heart of Milwaukee Heart and Stroke Ball; Go Red for Women; Hard Hats With Heart; Heart and Stroke Walk

Ways the business community can help your nonprofit: We are making a strong push to recruit volunteers for all our events. The next one is the 2022 Heart and Stroke Walk, Sept. 24 on the Milwaukee Lakefront. We need volunteers Sept. 23 from noon to 3 p.m. for set up and from 6 a.m. to noon the day of the event. For more details and to sign up, contact Dawn Lessard, administrative associate, at Dawn.Lessard@heart.org.

“Volunteers are so vitally important to our organization and to continuing to spread our mission,” said executive director Katie Connolly. “We have many opportunities for people who want to give back to the community.

We count on that participation and are so thankful to those who help us out. The upcoming Heart and Stroke Walk is an amazing event on the beautiful Milwaukee Lakefront. We look forward to seeing everyone there Sept. 24.”

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JAKE HILL PHOTOGRAPHY

BizConnections

5 MINUTES WITH…

JIM SAJDAK President and chief executive officer Stan’s Fit For Your Feet

BROOKFIELD-BASED Stan’s Fit For Your Feet recently acquired Waxberg’s Walk Shoppe in Niles, Illinois, marking the business’ first step outside the greater Milwaukee market. Both brands share similar values and histories as third-generation, family-owned footwear retailers, which is why Stan’s president and CEO Jim Sajdak saw Waxberg’s as a natural “fit” for Stan’s current footprint of six brick-and-mortar locations and e-commerce operation. As a nod to the Waxberg family’s legacy and decades-long investment in the Niles community, the store will continue operating under its existing brand name. In an interview with BizTimes associate editor Maredithe Meyer, Sadjak discussed the deal and what out-of-state expansion means for Stan’s.

HOW DID THIS DEAL COME ABOUT? “I’ve known the owner, Ron Waxberg, for a long time. When it was time for him to make that decision, he gave me a call, we started talking, and the whole thing came together. It was a relationship type of situation. …

“There’s not many of us independent shoe stores left that serve specific needs of their customers. We’re sit-and-fit, so we work one-onone with our customer throughout the whole transaction. We carry, as Waxberg’s does, a huge range of sizes from a medium width to a 6E wide, which is almost unheard of. So now, we have the ability to provide that footwear together.”

54 / BizTimes Milwaukee JULY 25, 2022

INTEGRATING TWO BRANDS “Waxberg’s has a heritage of 102 years. People know of them, and we respect that. I think that’s an important attribute to that store. I think we’ll integrate some of our best practices and marketing; we’ll be integrating maybe a more diverse product line, but all in keeping with our joint philosophies. I think there’s an opportunity to share what has been successful for us here over 72 years and combine that with what they do and what they have done.

“When you take over any business, or even in your current business, you’ve got to do whatever you can do to feed it with product, with marketing to continue to make it grow. … You don’t buy things to stay static.”

ON ENTERING A NEW MARKET “We have a great team at Waxberg’s, so we’re confident they can handle the day-to-day. And someone from our management team is down there at least two to three times a week. I think that’s important for direction, for evaluating the needs and just having our ear to the ground in a new market. … We’ve built our model and our business to accommodate multiple stores whether they’re 20 minutes away from each other or an hour and 10 minutes away, as Waxberg’s is from our Greenfield store. It’s very doable for us.”

FUTURE GROWTH POTENTIAL “We’re always looking for the right opportunity. We’re patient, we’re conservative, and in today’s market you have to be very strategic. So, whether it’s expansion or acquisition, the timing has to be right, and the location has to be right. In the case of an acquisition, their business philosophy and merchandise has to be fitting with what we do.” n

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