April 2015 IBAW magazine

APRIL 2015 Best Practices

Sales Roundtable

April 13th

“Fear of Cold Calling”

April 17th Special Event!

“Legislative Panel Discussing Business”

INSIDE THIS ISSUE: WEBER: IBAW ALIVE AND WELL

KEATING: FACT OF THE WEEK: TRADE UNDER BUSH AND OBAMA

KERRIGAN: SMALL BUSINESS AND THE AFFORDABLE CARE ACT AT FIVE YEARS

Networking matters

At AT&T, we know that making connections is critical to success. In Wisconsin and across the nation, we link businesses with their customers and the world through our wireless network with access to the nation’s largest Wi-fi network. It’s just another way we help our customers stay connected.

AT&T is proud to support the Independent Business Association of Wisconsin.

© 2014 AT&T Intellectual Property. All rights reserved.

IBAW thanks AT&T for it’s continued sponsorship.

IBAW MEDIA LINK “Kooyenga Talks Budget” Representative Dale Kooyenga talks about the challenges of putting together the State budget, his service as a solider and a hint of possible aspirations in the future - Media courtesy of the Brian Fraley of Edge Messaging, LLC.

Executive Director Steve Kohlmann President John Weber Hypneumat Secretary Charles Fry Robert W. Baird & Co., Inc President Elect 2014 Membership / Sponsorship Jim Leef ITU AbsorbTech VP. State & National Programs Jeff Hoffman Boerke

Watch by clicking here.

Treasurer Casey Malek Sikich Directors Bart Adams Sikich Ann Barry Hanneman Simandl Law Group S.C Heather Baylor Park Bank Richard Blomquist Blomquist Benefits Lisa Mauer Blackhawk Industrial Tom Boelkow BSI Design, Build, Furnish Craig Coursin MSI General Robert Gross Gross Automation

IBAW Mission: To advance business prosperity through insightful programming, executive networking and member-driven public policy and advocacy.

Contributing Photographer: Tim Townsend

Business Education Series FIVE STAR Programing

AL !

I C T E N SP VE E

Legislators coming to see you...

IN MILWAUKEE!

Peter Barca

Tod Ohnstad

D - Kenosha

D - Kenosha

Legislative Panel Discussion

Mike Kuglitsch

Dale Kooyenga

R - New Berlin

R - Brookfield

Join the IBAW for a special morning with elected representatives of Wisconsin.

Topics will focus on issues pertaining to business and other issues before the legislature.

Wisconsin Club Ballroom!

Panel moderator: Jeff Hoffman, VP State and National Affairs of IBAW.

April 17th Location: The Wisconsin Club, 900 W. Wisconsin Ave. Time: 7:00 AM - 9:00 AM Cost: $32.00 IBAW Members $42.00 Guests

Register at IBAW.com

Registration now open! Click here.

LOCATION

THE WISCONSIN CLUB 900 W. WISCONSIN AVE. MILWAUKEE

7:00 AM

REGISTRATION & NETWORKING

7:30 AM

BREAKFAST & PROGRAM

9:00 AM

PROGRAM ENDS

President’s Message: IBAW Alive & Well IBAW Board President, John Weber

I have been involved with the IBAW for approximately 7 years and have witnessed a remarkable transformation with this organization.

In the beginning, I spent the first couple of months attending meetings as a non-member exploring what the IBAW had to offer. My original takeaway was that I liked the offerings provided; the great speakers, excellent networking opportunities and how the group provided a venue to discuss public policy and its effect on business. These are the very core issues of what makes this group unique and compelled me to join. !

Like many businesses and organizations, during these initial days of my involvement (2008/2009 timeframe), the recession impacted IBAW, stagnating membership numbers which put a strain on the organization. Within a year of joining, my personal involvement grew with the IBAW by getting involved as a Board member and I have been very happy to be associated with a great group of individuals who have a core desire to preserve and grow Wisconsin business, and this organization, too.

Fast forward to today, with the combined efforts of our Board of Directors, Sub-committees and our Executive Director, Steve Kohlmann, the IBAW has grown over 25% in membership and sponsorship the past year and is easily on track for that grow path in 2015. This was accomplished by the strategic efforts put in place by the Board with a clear vision and updated by-laws. Marketing and branding efforts resulted in a new logo, website, enhanced legislative priorities, additional roundtables, business behind the scenes events and the consistent delivery of high quality, insightful speakers at our monthly breakfast meetings. If that wasn’t enough, IBAW also launched its own statewide monthly digital magazine filled with business articles and intelligence. With these activities and our increased membership, today the IBAW is on a solid footing and poised for growth.

Our goal is to continue to make this group even stronger, and I ask all our members and sponsors to promote the IBAW. If you have a business friend with the desire to be affiliated with an organization that provides a voice for businesses, has great speakers, programming and networking opportunities, do not hesitate to contact myself, or our Executive Director, Steve Kohlmann.

Also, do not forget to sign up for our monthly breakfast meetings held every 3rd Friday of the month and take advantage of the monthly Sales Roundtable – it’s a free benefit of your IBAW membership!

Best Regards, John Weber IBAW President

John Weber is President and owner of Hypneumat Inc. located in Franklin WI, providing industrial automation products and precision machined components. John has over 25 years of manufacturing experience in the metals industry.

It’s Over.

By IBAW Executive Director, Steve Kohlmann

It’s over for Hillary Clinton. She won’t become president.

Oh, she’ll get the 2016 Democratic nomination but that’s as far as it will go. And it has nothing to do with her latest email scandal, Benghazi, failed policies in the Middle East or the countless lapses in integrity, judgement and ethics that dog her.

No, what is sinking Hillary’s ship is what made her popular in the first place: America’s yearning for something new, hip and exciting. After two decades of being exposed to the American public, Hillary is no longer new and hip but old and tired. A product that has been on the shelf for too long and has Americans weary.

The party that brought you new and exciting candidates (products) such as John Kennedy, Bill Clinton, a young, hip and energetic Barack Obama now is stuck with Hillary. Let’s be honest, even Jimmy Carter was new and refreshing after the Nixon years. But Hillary? Been there, done that. And that’s the problem for her and the Democrats for the next election.

The same thing happened to Republicans John McCain and Bob Dole.

I’m not a political genius by any means but I do know something about marketing and communications. Presidential candidates are a product like anything else. They are tested, hyped up and rolled out to the public with slick ads, packaging and a lot of fan fare. Obama’s campaign of “YES WE CAN!” (even though he couldn’t) is a great example.

American’s are constantly on the prowl for the next shiny, new object. We want the latest cars, toys, electronics public figures and celebrities. Paris Hilton is out, Katy Perry is cooling and Meghan Trainor is in. For now.

Think I’m wrong? Maybe. But when was the last time you wanted the last generation of cell phone. Sure a flip phone might be able to still get the job done but why would you want it when there are newer, better options out there?

American’s want Hillary as much as the last generation of cell phone. Trying to repackage the same old Clinton product, something that was around 25 years ago when Beanie Babies and Cabbage Patch Kids were hot, isn’t going to cut it, and

the American public isn’t going to buy it. You can get all the Beanie Babies you want at the rummage sale down the street for a quarter. And so it is with Clinton.

While American’s are done with Hillary we’re resistant to saying goodbye. She was, after all good once (well, that’s certainly up for debate) and some want to still hang on to her so we’ll keep her around and can’t bring ourselves to say goodbye. Every house has a drawer filled with old USB cables, 3 1/2 inch floppy discs, batteries, cell phones and 2 mg cameras we just don’t want anymore but for whatever reason, can’t bring ourselves to toss them, give them away or put them out on the table at a rummage sale.

So what other presidential options are out there for the Democrats? Not too many, the pickin’s are pretty slim. There’s former Maryland Governor Martin O’Malley, Jim Webb, former Senator of Virginia and Senator of Massachusetts, Elizabeth Warren. Like many manufacturers (remember, political candidates are a product) they have hitched their wagon to Hillary and have not rolled out any exciting offerings to entice the American public for a buy in. Of course, there’s still Vice President, Joe Biden.

On the other hand, Republicans have an entire shelf of new product they are rolling out and marketing. Some will run for president and some will hold off for the future. Jeb Bush, Tom Cotton, Ted Cruz, Marco Rubio, and our own Paul Ryan and Scott Walker. Not all of these names are running for president but the fact that these names are in the spotlight (pipeline) is a good indication the Republicans are hard at work getting things lined up for the future.

“American’s want Hillary as much as the last generation cell phone.”

Unfortunately, Jeb Bush is suffering from the same affliction Hillary is. “We’re not that excited about another Bush in the White House.” is what we’re hearing. We don’t care if he is different from the last two, he still has the same name (packaging) and we’re done with that.

Hillary knows she’s not the hot ticket and has bunkered in. She held a brief press conference regarding her email accounts but other than that has remained out of the limelight hoping the public won’t suffer from ‘Clinton Fatigue’, but it’s way too late for that.

As I mentioned earlier, I could be wrong on this whole thought process and time will surely tell if what I’m predicting will come true or not. At any rate, keep your eyes and ears open in the next year to see how Democrats will try and refresh the Clinton brand because that’s going to be an interesting part of this election.

So there you have it. You heard it here first. Mark the tape; It’s over for Hillary.

Right to Work Becomes Law Practical Considerations for Wisconsin Employers Ann Barry Hanneman, Simandl Law Office On March 9, 2015, Governor Walker signed the Right to Work Bill into law, making Wisconsin the 25th Right to Work state. The Right to Work Law prohibits mandatory union membership or dues payments as a condition of employment. Accordingly, Wisconsin employees can no longer be forced to join or continue membership in a union, nor can they be required to pay any dues or fees to a union, as a condition of employment. This law became effective on March 11, 2015.

Shortly after Right to Work was signed into law, three unions brought an action for a temporary restraining order to halt the implementation of the law on constitutional grounds. On March 19, 2015, Dane County Circuit Court Judge William Foust rejected the claim to temporarily enjoin the law, which remains in effect even though a constitutional challenge is pending. The basis of the pending constitutional challenge is that the labor unions are claiming that the law constitutes an unjust “taking” because federal labor law requires a duty of fair representation forcing unions to bargain on behalf of all workers, not just those union members paying dues. As a result, workers who don’t pay dues still receive unionnegotiated benefits, and the unions contend that the Right to Work Law takes property from the unions without providing compensation. Judge Foust denied the motion for a temporary restraining order by ruling that there was no evidence of irreparable harm as required for a preliminary injunction. Attorney General Brad Schimel is defending the constitutional challenge on behalf of the State of Wisconsin and stated he is confident that the Right to Work Law will ultimately be upheld as constitutional.

Despite the constitutional challenge, the law remains effective. However, it is important for employers to bear in mind that the statute contains a grandfather provision for any current collective bargaining agreements in place. The statute provides that with regard to current contracts, the Right to Work Law will not take effect until the contract is renewed, modified or extended. For those employers with contracts currently in place, there will be no immediate contractual changes required although any pre-expiration modifications by way of grievance settlements, interim negotiations or even extension agreements may trigger the application of the Right to Work law prior to the expiration of the current contract.

Approaching the Issue of Right to Work with the Union and with Employees.

How an employer addresses its employees regarding the Right to Work Law will largely depend on each employer’s workplace culture. For those with collaborative relationships, an employer may wish to work together with the union in addressing the Right to Work Law with employees. For employers who do not have a close relationship with the union, the employer may wish to address the issue with a factual, but neutral, posting for employees.

What Information Can Employers Share with Employees Regarding the Right to Work Law? Employers with a unionized workforce may wish to inform their employees of their legal rights under Wisconsin’s Right to Work Law, but should limit such communications to the legal rights of the parties and should refrain from encouraging resignation from the union. Employees can be told of the right to resign from union membership and cease dues payments. Information can include the consequences of resigning from the union, such as the employee’s likely inability to participate in union elections or meetings, vote in collective bargaining ratification elections or participate in other “internal” union activities. The employee information should be tailored to the actual facts of employment applicable to the employer’s employees.

Employers can similarly inform employees that if they resign from union membership, they will still be fully covered by the collective bargaining agreement and any employer-provided benefits under the collective bargaining agreement (e.g., wages, seniority, vacations, pension, health insurance) and that resignation/cessation of dues payments will not affect the employee’s pay or benefits.

For employers with a current collective bargaining agreement in place, employees can be informed that although the Right to Work Law became law in the State of Wisconsin, the law will not apply to their particular workplace until their current collective bargaining agreement is renewed, modified or extended.

If an Employee Wants to Resign From the Union, What Do They Have to Do? If an employee chooses to resign from the union and/or stop paying dues, the employee will have to inform both the union and the company in writing of the resignation from union membership and ceasing dues payments. If the individual is on an automatic dues check off, that employee should include the authorization for automatic dues check off. Employers may wish to have their own revocation document to facilitate the cessation of dues check off so that written records of the revocation can be maintained. This written notice should be given to the union and the company no less than thirty (30) days in advance of the date on which the employee seeks to terminate or otherwise adjust the relationship with the union.

It is important to remember that the Wisconsin Right to Work Law does not supersede the National Labor Relations Act (NLRA) in an employer’s dealing with its employees. The “certified unit” remains despite the Right to Work Law, and direct dealings with employees on terms and conditions of employment may be limited under the NLRA. Employers should analyze any potential vulnerability before changes to the terms and conditions of employment are initiated.

Further, employee requests to cease dues deductions and/or union membership should not be confused with a “lack of majority status” of the union. Recognition withdrawal should be closely considered by an employer with a confirmation of relevant facts to ensure legal compliance. Hasty action may result in an unfair labor practice charge being filed against the employer by the union.

Independent Business Association of Wisconsin supported the Right to Work Legislation and included the establishment of Wisconsin as a Right to Work State in its 2015 legislative initiatives so that Wisconsin keeps a competitive advantage in fostering job growth. Furthermore, allowing private sector employees to choose whether to pay union dues advances personal freedom for all workers in Wisconsin. It is expected that both employers and employees will be benefited by this law.

Ann Barry Hanneman is a past president of IBAW and is presently sits on the Board. She is Principal in Simandl Law Group, S.C.. and acts as legal counsel to management in labor and employment law matters, including representing employers in federal and state employment litigation. Ann has successfully tried federal court jury trials, and regularly represents employers in administrative matters as well as federal and state court proceedings.

In addition to litigation, Ann’s practice includes advising on employment discrimination, negotiating separation agreements, handling sexual harassment complaints, drafting employee handbooks and developing policies, and managing wage and hour matters and leave requests in compliance with state and federal law.

Welcome New IBAW Members!

Tony Haning of JLL (Jones Lang LaSalle) Tony Haning is an Associate with Jones Lang LaSalle’s Wisconsin office. He is responsible for industrial brokerage operations including landlord and tenant representation, investment / occupier sales and sale / leaseback opportunities. Tony actively JLL is a financial and professional services firm that specializes in commercial real estate services and investment management. We’re in business to create and deliver real value through commercial real estate for clients, shareholders and our own people. In a complex world that is constantly changing, JLL is committed to helping you understand and navigate the intricacies of commercial real estate—whether you’re an investor or occupier of space.

Tony Haning JLL (Jones Lang LaSalle) 245 S. Executive Drive #300 Brookfield, WI 53005 262-901-1320 tony.haning@am.jll.com

Jeff O’Connor , CJM Lighting Our expert Milwaukee electrical contractors are your BEST choice for industrial and commercial energy efficient lighting in Wisconsin and Illinois. Reduced expenditures on lighting can save you a significant amount of money on your utility bills. Our custom-designed industrial and commercial lighting solutions are driven by a total dedication to maximizing your monthly cost-savings. CJM Lighting and Electrical is the premier provider of quality, energy efficient lighting upgrades in Wisconsin and Illinois.

Jeff O’Conner CJM Lighting 20316 W. Main Street Lannon, WI 53046 262-518-7757 joconnor@cjmlighting.com

Ernie Litynski, RBP Chemical Technology, Inc. RBP Chemical Technology is a world class manufacturer of chemistry for the Commercial and Newsprint, Print Industry and the Electronics Print Industry. RBP has research and development capabilities to produce the finest chemistry available for the traditional print process. Fountain solutions, press washes, blankets cleaner and conditioners, silicone and plate preservatives. In addition, RBP carries a full line of pressroom consumables that include: oil and water sorbents, cleaners and wipers, blankets, tapes and adhesives, press parts, cutting bars, reel room products, safety and health items.

All these products are backed up by a dedicated Customer Support team to assist in orders and product selection. Our chemistry products are developed, tested, installed and maintained by a group of industry trained chemists, chemical engineers and PhD's. This team offers on site support of all RBP Chemical Technology's chemistry and products.

Ernie Litynski RBP Chemical Technology, Inc. 150 S. 118th Street Milwaukee, WI 53214 414-426-4919 elitynski@rbpchemical.net

Dan Westrope, Ixonia State Bank With over 35 years in the banking industry, Dan Westrope’s background and knowledge of banking helps lead Ixonia Bank’s professional team of bankers to meet the needs and objectives of their customers and the communities that they serve. Prior to joining Ixonia Bank, Dan held the position of President and Chief Executive Officer of National Bancshares, Inc. in Bettendorf, Iowa.

Previously, he had been Executive Vice President and Chief Financial Officer of State Financial Services Corporation and State Financial Bank, both located in the Milwaukee area; and Howe Barnes Investments in Chicago, Illinois. He graduated from Western Illinois University with a Bachelor of Business Degree.

Dan Westrope, President & CEO Ixonia State Bank Locations in Ixonia, Dousman, Hartland, Oconomowoc & Watertown 262-567-6955 dwestrope@ixoniabank.com

Outsourcing Payroll May Make Sense, Cents Chris Berg, The Payroll Company

Managing payroll and human resource issues becomes more complex every year. I spent the last 25 years managing human resources, benefits and operations so I fully understand the challenges and hurdles businesses have in this endeavor.

With implementation of the Affordable Care Act, it’s a sure bet paperwork and regulations will increase, not decrease and create further havoc on payroll and HR departments whether you are a small family business or a large production shop. The complexity of payroll and HR requires specialized knowledge, experience, and expertise.

In a post “Great Recession” economy, every business needs to look at operating with greater efficiency both on the shop floor and in the office. Firms may need to seek outside assistance to manage these issues.

Processing payroll, filing reports, inputting employee changes and the other daily tasks of handling payroll are time consuming. Eliminating the need to handle payroll or manage the staff that does it frees up executive time, allowing managers to focus on profit-driving efforts such as product development, sales and customer retention.

The Human Capital Management ROI calculator gives you an estimate of the money you can save each year by investing in solutions and services rather than doing them yourself. http://www.payrollcompany.biz/news-and-resources/hcmroi-calculator

“In a post “Great Recession” economy, every business needs to look at operating with greater efficiency both on the shop floor and in the office.”

When business gets in over their heads, most managers’ instincts tell them to turn to the company’s accountant or attorney. But the evidence shows that it’s usually more cost-effective and efficient to employ the services of payroll and HR professionals. Consider the following; organizations that retain payroll and related activities in-house spend on average 18 percent more than those that outsource (source: PriceWaterhouseCoopers). And approximately 33 percent of all employers make payroll errors (source: IRS).

Utilizing a payroll service often grows the firm’s bottom line by reducing costs in several key areas. Most companies find immediate and significant savings by outsourcing payroll because the cost of outsourcing is typically less than the cost of an employee to process payroll in-house. However, additional savings are also found through eliminating the need for costly software, the related technology updates and the time associated with the due diligence it takes to stay on top of the ever changing regulation and compliance.

Full-service payroll companies will provide much more than payroll processing, offering a wide range of payroll specializations, many created with specific industries in mind. From direct deposit to paying garnishments and child support orders, Affordable Care Act compliance, and new hire reporting capable payroll professionals will coordinate the many logistics needed to keep your operations running as smoothly as possible. In addition, many payroll companies offer 401k management, flex spending and COBRA administration, timekeeping and human resource management services.

Beyond the cost savings and creating more bandwidth for strategic thinking, a payroll processing service can yield other important corporate benefits such as: •

Up-to-date tax knowledge: They will ensure that the firm files its taxes in proper form and on time. Tax rules and regulations are a fluid entity, continuously changing and evolving. A business owner runs the risk of misfiling or even missing out on various breaks and incentives. Late or incorrect payments to the IRS result in millions of dollars in fines for businesses every year. A qualified vendor will be up to date on the right codes, tables, forms and requirements to ensure you get everything that the firm is entitled to under the tax code.

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Ongoing financial reporting: A skilled payroll provider will be able to offer custom reports to help the client, such as monthly overtime reports, year-to-date taxes and earnings, and breakdowns by department or job code to make sure the organization has all the information it needs to operate efficiently.

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Improved efficiency and better productivity: Payroll outsourcing companies process the payroll day in and day out and have a better awareness of technical and legal norms.

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Stronger relations with employees: Payments or salary payouts are important to employees and executing timely payments keep your employees happy which in turn keeps their morale high. This can be a major factor in retaining good talent.

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Error-free payroll processing: A payroll company can work with firms to ensure that they are complying with Federal and State regulations and can guide clients through the challenges and complexities of compliance issues.

Firms that comply with rules and regulations reduce their risk, which translates into cost savings. There has been a 2,000% increase in employment litigation since 1995, with a $200,000 average per case court settlement. The average litigation cost per case: $50,000. (Source: Small Business Administration)

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Using Best of Technology: Payroll outsourcing firms use latest software programs for payroll processing, tax computation for minimizing errors and delays. These programs can protect your employee data through an authorized control system and managed by the organization.

Because of the significant benefits when outsourcing payroll, more and more companies are outsourcing this professional service as a strategy to increase profits and become more efficient. Allowing specialists to handle the intricate details and daily grind of payroll allows a company’s executives to focus on what they do best—growing their business.

But firms should shop around to find a payroll partner that meets their particular needs. One good sign: their clients stay with them over time. That means the payroll company is providing benefits the clients need.

Chris Berg is your local representative with The Payroll Company. She lives in New Berlin and has spent the last 25 years managing human resources, benefits and operations. Prior to joining The Payroll Company, Chris served as the Human Resources Director at the Energy Center of Wisconsin, a Madison-based firm and became a client of The Payroll Company. She holds a Bachelor's degree in Human Resources, a Master's degree in Organizational Development, and is Treasurer of the Wisconsin Society of Human Resource Management (SHRM) State Council. Her vast experience provides you with a wealth of experience that is invaluable to any firm.

Small Business and the Affordable Care Act at Five Years Karen Kerrigan, President & CEO, Small Business & Entrepreneurship Council.

Small businesses were promised lower costs and more choices once the Affordable Care Act (Obamacare) was implemented. Five years after being signed into law, small businesses have not seen many of the benefits they were promised.

Higher Insurance Costs Very little has changed for small businesses and the self-employed when it comes to costs. They keep going up. Yes, there are exceptions here and there, but for the most part, the promise of lower costs has been an empty one for small businesses.

According to a National Small Business Association survey in 2014, “91 percent of small businesses reported increases in their health plan at their most recent renewal while 96 percent reported increased health insurance costs over the past five years. The majority expect to continue seeing cost increases in the coming year.” Indeed, that has been the case for 2015.

You can’t load up health insurance plans and the health care system with mandates, regulations and taxes (like Obamacare does) and expect lower costs. Let’s make this clear: The law has not produced lower costs. President Obama promised a $2,500 decrease in insurance costs per family. This did not happen.

Choice and Access Have Not Improved The performance and effectiveness of the health insurance exchanges for small businesses have been underwhelming, to say the least. In most states, the exchanges have been a sad and wasteful disaster. “One year in, the new small-business insurance marketplaces born out of the new federal health-care law have fallen short of their promise in nearly every state, both in terms of functionality and enrollment,” reads an October 2014 Washington Post article.

For 2015, small businesses have been promised bigger and better. The federal Small-Employer Health Option Program (SHOP) was delayed until this year and is now open. One of the original selling points was the offering of many plan choices that the employees of small businesses could select from. This feature will not be available nationwide until 2016, but some state exchanges do provide this option (albeit with limited choices). Exchange website “glitches” and lack of insurer participation have slowed SHOP down, and it remains a question mark as to whether small businesses will actually use the government exchanges. It’s a question mark as to whether more insurance companies will actually want to participate on the SHOP exchanges, thus undermining their whole purpose.

Obamacare stripped existing health care plans from many small businesses and the self-employed – most have not been (or will not be) able to keep the health care plans they liked. We knew this was going to happen, despite promises stating otherwise. Obamacare is upending Health Reimbursement Accounts (HRAs) as well, which are used by many small businesses. While the federal government announced it would delay the imposition of financial penalties on companies that use HRAs until July of this year, stripping this choice from small employers is going to hurt.

The bottom line is that small businesses and the self-employed are losing, not gaining, health insurance choices under Obamacare.

Obamacare controls the market; therefore health insurance choices are limited by government’s control, and dictates on plans. Obamacare has eliminated many preferred and affordable choices. The government exchanges are not real markets.

These markets are not appealing for most small businesses, or insurers. That is probably why the federal government (HHS) will not fully release the data on the number of small businesses that are using the exchanges (despite repeated requests by former House Small Business Committee Chairman Sam Graves in 2014, and those shortly following the launch of the new HealthCare.gov.) The total numbers would be embarrassing, but we know the truth. Small business participation is abysmal.

Small Business Tax Credit a Dud During debate on Obamacare, most members of the small business community did not see how the plan would lower costs or improve access. So the White House kept talking up the benefits of the health care exchanges (see how that worked out above?) combined with the small business tax credit. Unfortunately, and as predicted, the tax credit remains a big dud.

The tax credit is so measly and complex that only a tiny fraction of the small business sector qualifies for it, or dares to sift through the morass. To make matters worse, the tax credit is only temporary. As noted by the Government Accountability Office last year, “the credit may be too small and administratively complex to motivate many employers to enroll.” Indeed, another reason why small business participation in the health exchanges is so low.

The credit needs to be much more robust to minimally harmonize with the high cost of Obamacare and the reality of small business pay scales. Moreover, simplification, permanency and allowing more small business employees to qualify, could yield a higher adoption rate.

New Burdens, Uncertainty and Complexity Remember when President Obama boldly claimed that buying health insurance on the exchanges would be easy peasy – as simple as purchasing something on Amazon.com? Well, it did not turn out that way. There was the dreadful launch of HealthCare.gov, but bad websites are only one aspect of Obamacare’s false starts, complexity, confusion, and the burdens impacting small businesses.

Obamacare’s incessant changes and delays have been confusing for many small businesses. According to the Galen Institute, “more than 49 significant changes already have been made to the Patient Protection and Affordable Care Act: at least 30 that President Obama has made unilaterally, 17 that Congress has passed and the president has signed, and 2 by the Supreme Court.”

Obamacare’s administrative and compliance burdens are not insignificant either. They are imposing hefty costs on top of general frustration for small businesses. In February, we also learned the Department of Health and Human Services (HHS) sent faulty tax information to 800,000 taxpayers – presumably many of these are small businesses and the selfemployed. (House Small Business Chairman Steve Chabot has multiple requests into HHS about the incident.)

Moreover, the complexity of Obamacare’s employer mandate (where, for example, a 30-hour work week is considered full time) and its sheer costs have forced small businesses to cut hours, wages and jobs.

The Struggle Continues for Small Businesses From the small business perspective, Obamacare has exacerbated their 20-plus year struggle with health insurance – costs are too high and keep increasing, innovative choices are lacking, and buying coverage and administering health insurance is a burdensome hassle.

Obamacare supporters point to those getting insurance (though not all are newly insured) as the key measure of its success. Yet, those meager achievements could have easily been reached without disrupting the lives and health plans of millions of people, and without spending $1.7 trillion of taxpayer dollars, including the wasted billions on bad exchanges, consultants, technology and who knows what else.

Karen Kerrigan is President & CEO of the Small Business & Entrepreneurship Council.

LakeView Technical Academy; Hope for the Future Workforce On Thursday, March 24, IBAW Executive Director, Steve Kohlmann was invited to attended a tour with Lt. Governor Kleefisch of LakeView Technical Academy in Kenosha, a specialty high school preparing students to enter the field of engineering ; Industrial, Chemical, Electrical, Manufacturing, Biomedical, higher level technology, Electromechanical Technology/Robotics and Information Technology.

LakeView opened in the fall of 1997 , has a unique partnership with the Kenosha Area Business Alliance (KABA), WISPARK Corporation, Gateway Technical College , Marquette University College of Engineering, and the Kenosha Unified School District.

LakeView students earn the equivalent of one year of technical college credits and/ or one semester of college of engineering credits upon graduation. LTA has the highest Wisconsin Knowledge and Concepts Exam (WKCE) scores of any public high school in the Kenosha, Racine and Walworth counties.

LTA Facts •

LTA's career tracks: engineering, automated manufacturing, information technology, biomedical & aviation.

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Capacity: 395 of Freshmen, Sophomores, Juniors and Seniors.

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The school has strong ties to local business and industry.

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Students take on-site Gateway classes which allow them to earn 18-21 college credits. These credits can be transferred to Gateway and several other colleges.

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Students can attend LakeView on a full time or part time basis.

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Students take both KUSD and Gateway classes

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Lt. Gov. Kleefisch tries out an underwater robot built by the students.

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Robotic arms used in manufacturing are programmed by the students to perform intricate tasks to mimic production.

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A teacher highlights the complex drive mechanism of a electric racer built by students. The car has a top speed of 60 MPH and is tested at the track at Road America.

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The “New” New Normal Chemicals 2015 A Grace Matthews White Paper The 'New' New Normal is Grace Matthews fifth edition of its chemical white paper series. This publication focuses on some of the macroeconomic issues and demographic trends that will affect the chemical industry in the 21st century.

IBAW member Grace Matthews, Inc. is a middle-market investment bank focused on merger and acquisition advisory services. In any particular assignment, their guiding principal is to help their client unlock the value of their business and assist them in achieving other personal and business goals.

Click here to read.

IBAW At Business Day in Madison...

IBAW Around Town...and Around the State With Legislators the day after Right to Work is signed to get a briefing.

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Representative Chris Chapping show off one of the pens Gov. Walked used to sign the Right to Work bill into law.

IBAW spent time at the Joint Finance’s public hearing at Alverno College.

WisDOT Secretary Mark Gottlieb discusses the state budge and the I-94 construction project with IBAW members at the March meeting.

IBAW attends New Berlin Business Day at Eisenhower High School.

Thanks to our newest in kind sponsor, Red Elephant Chocolate! Speakers at our monthly meetings will receive a thank you box of chocolate courtesy of Red Elephant.

IBAW Promo Video Underway!

Scott Seroka (right) of Seroka Branding, interviews Jim Leef of ITU AbsorbTech for the IBAW promotional video.

The video will be used to help promote membership of the IBAW and will be parked on the IBAW YouTube site for members to to share with their business associates.

SALES: Best Practices ROUNDTABLE

Monday, April 13th 7:15 AM - 9:00 AM

“Effective Cold Calling”

Even if you're seasoned in sales, learn what other professionals are doing and some new techniques and skills you might be missing.

This roundtable is open to anyone in a business development role at an IBAW member company who would like to share their real world challenges and most successful strategies for growing business.

This Roundtable is meant to serve as a confidential means to learn from your peers in other industries and to help others learn from your experience – good and bad.

Cost: Free - A benefit of IBAW membership.

Location: (Registration is required) CTaccess Conference Room 740 Pilgrim Parkway, Suite L3 Registration is open!

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Coffee provided by CTaccess, bakery provided by IBAW.

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Fact of the Week: Trade Under Bush and Obama Ray Keating, Chief Economist, SBE Council, Washington D.C. Many important issues were covered at Hofstra University’s conference (March 24-26) on the presidency of George W. Bush, which I attended this past week. That included international trade.

Protectionist? It caught my attention when a professor from Suffolk University, Shahruz Mohtadi, labeled President George W. Bush a “protectionist.”

That’s an odd declaration, to say the least, given that Bush was the most active president in U.S. history in signing and advancing free trade agreements. He signed nine trade deals into law, covering 14 nations, with an additional three agreements left pending for his successor.

Mohtadi focused on temporary steel tariffs and a subsidy-heavy farm bill – which clearly did work against free trade – during the Bush years to buttress his “protectionist” label. Mohtadi declared that he considers any president who is not purely free trade in terms of policies to be a protectionist. While I admire the idealism, that would make every U.S. president since at least Herbert Hoover a protectionist.

Or, the Most Free Trade President Ever? Given the real world, however, one can quite reasonably argue that Bush was the most free trade president in recent times.

Given that reality, again as made clear by the number of trade agreements he signed and advanced, it would be an enormous leap forward for the U.S. economy if President Barack Obama would become more Bush-like on trade in his final near-two years in office.

Obama’s Record. Obama already has made strides from running as a protectionist during the 2008 campaign, to being rather ambivalent on trade, to finally signing the three trade accords left by Mr. Bush (Colombia, South Korea and Panama) into law, to now advocating the Trans-Pacific Partnership (TPP), a proposed agreement with 11 Asia-Pacific countries (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam), and the Transatlantic Trade and Investment Partnership (TTIP) with the European Union.

The question regarding trade and Mr. Obama today is just how committed is he to pushing these trade accords. Another Hofstra conference speaker, Dov Zakheim, who was an Under Secretary of Defense from 2001 to 2004, raised this question.

More Trade is Needed for U.S. Growth and Small Business Opportunity. As noted in a previous SBE Council Fact of the Week, reducing trade barriers is critical for small businesses and jobs, with additional analyses focused on exports and imports.

Given the obvious conflicts and disagreements between the Bush and Obama administrations, President Obama would do well for the nation to adopt and advance President George W. Bush’s commitment to free trade.

Raymond J. Keating, is Chief Economist of the Small Business & Entrepreneurship Council (SBE Council).

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IBAW is on an upward trend of growth and we are actively recruiting businesses just like yours to join!

When you join IBAW your entire company is a member - anyone from your team can attend our fine educational and networking events.

Help yourself, your business AND your Team Members.

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2015 Membership Committee Lyndsay Zwerlein PNC Bank Jim Leef ITU Absorbtech

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Scott Seroka Seroka Branding

Steve Kohlmann IBAW

Steve Van Lieshout K & S Technologies Get involved with IBAW. Consider joining a committee!

Contact Steve Kohlmann for more information.

Legislative Fix Moving Ahead for Wisconsin’s New Manufacturing & Agricultural Credit Jim Brandenburg, CPA, MST - Sikich LLP

In IBAW meetings and publications in recent years we have introduced you to Wisconsin’s new tax incentive - the Wisconsin Manufacturing and Agriculture Credit (referred to as the “MAC”). The MAC came about in 2011 to provide an incentive for Wisconsin manufacturers and agricultural companies to remain and grow here, and also perhaps to have out-of-state companies move here. It was scheduled to begin in 2013, and when fully phased-in by 2016 it would essentially exempt any Wisconsin manufacturing and agricultural income from Wisconsin income tax. The MAC was championed by Representative Dale Kooyenga and Senator Glenn Grothman in the legislature.

Magazine Content Needed Consider Submitting an Article!

The MAC, however, had some problems for individual taxpayers when it was drafted and this glitch was recently identified. Here is the issue in a nutshell: the MAC would reduce a taxpayer’s Wisconsin individual income tax, but then would trigger a Wisconsin minimum tax for nearly the same amount. Thus, there may be little, if any, net savings for the MAC in 2013 (a “MAC Attack?”). The legislature is trying to remedy this situation now so that taxpayers can realize the proper tax savings with the MAC on their 2013 Wisconsin individual tax returns.

The IBAW magazine is in need of content, we rely on our members and sponsors to supply us informative information.

The digital magazine is sent out to over 650 contacts statewide and the magazine is parked on the web where, on average, it gets over 1100 views.

Legislative Update: It seems that all key legislative leaders are now on board to correct this issue. It was approved by the legislature’s Joint Finance Committee last week. The Senate and Assembly will be in session in March and voting on final passage for several bills, one of which is this tax bill with the MAC correction. It looks like the legislative timetable will have the bill passed near the middle of the March, before going to the Governor.

Thus, a best guess now is that the bill would be enacted into law somewhere in the latter half of March, 2014.

MAC Attack Options: For any of our individual taxpayers taking advantage of the MAC, this may present some filings logistics. Here are the possibilities:

1. Best case scenario - in some cases the taxpayer’s share of the MAC for 2013 will be used and not result in a Wisconsin Minimum Tax. A taxpayer in this situation could go ahead and claim the MAC and file their 2013 Wisconsin individual return. There would be no need to wait for the legislation to pass.

Consider writing an article on a timely business related topic to your particular field of business. This is an outstanding opportunity for you and your company to gain exposure and increase your brand awareness to a statewide audience. There is no cost to submitting an article.

2. Next, a taxpayer has generated a MAC for 2013, but it will trigger a Wisconsin Minimum Tax. The taxpayer in this case could wait until the law is changed (and then wait a little for the WDR to update its computer processing systems) and then file their Wisconsin tax return and claim the MAC, and not incur the Wisconsin Minimum Tax. This could present a tight timeline for the April 15 deadline, and you may need to file for an extension.

3. Similar case as #2, but this taxpayer could file their Wisconsin individual return with the MAC, but also incur and pay a Wisconsin Minimum Tax for 2013. Then, once the corrective law is enacted go back and file an amended 2013 Wisconsin tax return to obtain the proper tax benefit of the MAC. You would not need extend, but you would need to amend.

We’ll keep you posted as this legislation moves forward.

If you have any questions, please contact Jim Brandenburg or Brian Kelley at Sikich, LLP in Brookfield (262)754-9400.

Contact Steve Kohlmann for details.

Articles submitted by our members & sponsors.

Welcome New IBAW Members!

Meeting Recaps 2014 Wisconsin Manufacturing Knowledge Summit

Power Test

On June 20, 2014 the IBAW partnered with the Tool, Die & Machining Association of Wisconsin (TDMAW) to offer Wisconsin manufacturers and their suppliers a unique look at trends within the industry and to also report on some of the challenges the industry faces in the next 5 years.

Power Test, Inc. is an industry leader in the design, manufacture and implementation of dynamometers and control systems.

Special thanks to the event sponsor, First Business Bank for their efforts in helping organize this event.

For more than 37 years, Power Test has provided specialized test equipment to manufacturers, rebuilding facilities and distributors globally. Our products can be found in use at these facilities in nearly 100 countries on six continents.

Chris Halaska

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Our headquarters and manufacturing operations are located in Sussex, WI with sales representatives worldwide. Our unparalleled customer service is well known throughout the industry.

Power Test employs a dedicated staff of talented machinists, fabricators, electronic technicians, assemblers, designers, engineers, software developers, and administrative and customer service personnel.

Our exceptional product life and excellent customer service is well known throughout the industry and has made us one of the industryleading dynamometer manufacturers. Our dedication to the customer and to the advances in powertrain component testing keep us there.

Power Test N60 W22700 Silver Spring Drive Sussex, WI 53089 Phone: 262-252-4301

4 Advanced Waste Services Advanced Waste Services is an environmental services company that provides wastewater recycling and other waste and risk elimination services to manufacturers in all industries. Each day, AWS helps hundreds of businesses, both large and small, meet their community and environmental obligations. Annually, we collect, treat and recycle more than 50 million gallons of contaminated wastewater into clean, reusable water and other valuable resources like fuel, steam and electricity.

AWS is constantly helping our clients manage, reinvent and improve their sustainability successes. For example, we recently partnered with Forest County Advanced Waste Services Potawatomi Community to help Wisconsin food and beverage manufacturers convert 1126 South 76th Street food waste into clean, green renewable energy.

Suite N408B

West Allis, WI 53214 Founded in 1993, AWS employs 55 people in the Milwaukee area and a total of 150

people companywide in 5 states.

414-847-7100

Photo Key 1: A full house in the main ballroom of the Wisconsin Club as IBAW & TDMAW members prepare to hear about the state of manufacturing and the challenges the industry faces in the workforce.

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2: David Vetta of First Business Bank delivers opening remarks and highlights the importance of a strong relationship between banking and manufacturing working together for success.

3: New IBAW President, John Weber of Hypneumat addresses the change in IBAW Bylaws and calls for voting in new board officers.

4: Kent Lorenz of Acieta gives the main presentation on “Manufacturing Matters” pointing out the trends on manufacturing now and what to expect in the future.

5: Outgoing IBAW President, Steve Van Lieshout receives his award for his efforts as 2013 - 2014.

6 Photos courtesy of Tim Townsend.

6: IBAW Executive Director, Steve Kohlmann (Left) presents David Drumel with an award for his service on the IBAW board.

Spotlight on new members

2015 IBAW Legislative Priorities Now Online!

State Legislative Priorities - Tax Reform - WI DOT Funding and Strategic Visioning - Establishing RIGHT TO WORK in Wisconsin - Joining the Lawsuit against the EPA - Advancing WI Education & Workforce Development Reform

National Legislative Priorities - Pro Growth - A National Energy Policy Capitalizing on our Strengths - Limitations on Executive Action and Administrative Regulations - Sustainable Healthcare Reform - Supporting a Free Market Internet

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AT&T ITU AbsorbTech Park Bank Blomquist Benefits Advantage + Bank Mutual Sikich Godfrey & Kahn Lauber CFO’s RW Baird von Briesen HRS Associated Bank Vrakas / Blum Advanced Waste Services Simandl Law Group, S.C.

Boerke Co. Hansen Reynolds Dickinson Crueger BSI - Design, Build, Furnish Letterhead Press Consolidated Construction MSI General Contractors BMO Harris Powertest Red Elephant Chocolate Reinhart, Boerner, Van Deuren, S.C. Hypneumat Mfg Cultivate Communications Staff Electric Sponsor support helps IBAW continue to bring insightful programming to small business owners.

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The Independent Business Association of Wisconsin is a not-for-profit entity filed with the IRS under 501(c)(6) of the Internal Revenue Code.

As a not-for-profit association, the members of The Independent Business Association, Inc. are allowed to deduct a percentage of dues that are not used for lobbying purposes. For the year 2013 based on the total income of the association and the lobbying expenses as reported on the Wisconsin State Ethics Board Lobbying reports for 2011 the percent of dues that were used for lobbing purposes is 10%. Therefore, the percent of dues that would be tax deductible is 90%.

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