August 2015 IBAW Magazine

AUGUST 2015 Note Date change for this meeting...takes place on 2nd Friday of the month.

August 10th

August 14th

Best Practices

Dan Ariens, President & CEO, Ariens Co. “Building a Wisconsin Icon”

Sales Roundtable

Inside This Issue:

MENZEL: NEW GUIDANCE FROM DOL ON CLASSIFYING EMPLOYEES AND INDEPENDENT CONTRACTORS

KEATING: SHORTSIGHTEDNESS: HILLARY’S CAPITAL GAINS TAX PROPOSAL

KORTES: HIRE GOOD PEOPLE AND LEAVE THEM ALONE

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 Paul Ryan predicts ObamaCare’s Demise

Executive Director Steve Kohlmann President Jim Leef ITU AbsorbTech Secretary Charles Fry Robert W. Baird & Co., Inc President Elect 2015-16 Craig Coursin MSI General VP. State & National Programs Jeff Hoffman Boerke

Watch by clicking here.

Treasurer Casey Malek Sikich Directors Bart Adams Sikich

Gov. Walker’s Appearance at 2015 Leadership Summit

Ann Barry Hanneman Simandl Law Group S.C John Weber Hypneumat Dan Hansen Park Bank Richard Blomquist Blomquist Benefits Lisa Mauer Rickert Industries Tom Boelkow BSI Design, Build, Furnish

To watch video, click here.

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

Robert Gross Gross Automation

WORKFORCE STRATEGIES: Attraction. Retention. Connection.

SUMMIT OVERVIEW Workforce continues to be a driving factor for the Manufacturing and Construction sectors. This summit will give you insight as to what to expect in the future and offer key takeaways to help retain the workforce you have. Learn how your company culture will attract skilled workers and retain the team you have now.

Get introduced to key organizations to help you work through this issue NOW and in the upcoming years.

Keynote Presenter: Christine McMahon “Why should I work here?”

What employees want from employers is changing.

Today, the work experience is as important as the work they do. How they are treated and the opportunities to grow and advance their career matters. Employee retention is as important as employee attraction – a much overlooked consideration.

In “Why should I work here?,” we’ll cover critical strategies to help you become an employer of choice for both prospective and existing employees.

Existing employees will feel positive about their work, their leaders and the company.

About Christine McMahon: Ms. McMahon helps leaders create compelling businesses where employees rally around a shared vision and are purposeful, creative, collaborative and accountable. Her goal is simple: create flawless execution.

Before launching her company, McMahon established a proven track record of building high performing teams with Procter & Gamble, Slim-Fast Foods and Nabisco. She is a co-founder of the Leadership Institute at WCTC’s Center for Business Performance Solutions, and a columnist for the award-winning BizTimes publication.

September 18,2015 Location: The Wisconsin Club Ballroom Time: 7:00 am - 9:00 am COST: $32.00 Includes plated breakfast!

Who Should Attend CEOs Human Resource Managers Shop Floor Management Directors of: Operations, Engineering, Production Key Organizations In Attendance Get introduced to organizations that will help you with your specific workforce right now and in the future.

A specialized mini expo will take place personally vetted and selected to help you.

Business Education Series FIVE STAR Programing

August 14th Meeting Dan Ariens, President & CEO, Ariens Co. “Leading a Wisconsin Icon”

Note the date change.

Usually meetings are on the 3rd Friday.

This meeting changed to accommodate speaker.

Even the very best companies and organization can find themselves staring the unexpected in the face. Product recalls. Industrial accidents. Fires. Lawsuits.

Tornadoes. Environmental trouble. Neighbor disputes. Layoffs. Labor issues.

Plant closures. Product tampering. Explosions. Workplace violence. Protecting a company's brand during a crisis always has been a challenge, but the age of the smart phone has significantly changed the rules of the road.

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

Cost: $32.00 IBAW Members

$42.00 Guests

IBAW Around Wisconsin...

Dan Hansen, Anne Ballentine, Michael Poludniak and John Weber at the July meeting.

Evan Zeppos of Laughlin Constable shares his experience on Crisis Communication at the July meeting.

Tips on the subject: Be Fast.

Be Honest.

Be Compassionate.

Mandy Perez of HNI and Nicole Coffey of Bank Mutual share a moment at the July meeting.

New member Dan Westrope of Ixonia Bank sports the IBAW support decal.

Joel Quadracci of Quad Graphics and IBAW Executive Director Steve Kohlmann share a moment at a Power Breakfast.

The 2015 WI Manufacturing Summit Committee discusses the agenda for the big Sept. 18th meeting.

Event information here.

How Do You Handle Adversity?

Steve Kohlmann, IBAW Executive Director

As you may know (or maybe you don’t), I’m a bit of a motorcycle junkie.

My present ride is 2003 Honda ST1300 which can be described as a sport touring motorcycle. It’s a bike designed to be very agile on twisty roads but it also has the ability to work as a pack mule for long trips. The engine is a super smooth V-4 that pulls all the way to redline and effortlessly devours highway miles at a very alarming rate. Not that I condone speeding mind you.

I’ve been riding since I was in my early 20’s and have had more motorcycles than I can remember. From small street bikes to big touring bikes and everything in between. I’ve taken my share of road trips and have even had the opportunity to lose all my senses and take dirt bikes to ride Baja (dangerous), Sedona (desolate) Moab (hot) and Death Valley (really hot!) off road.

Like many things, the sport doesn’t come without hazards and risks. While you can ride your entire life and not have an accident, the risks are always in the back of your mind. When you ride a motorcycle, friends and acquaintances feel obligate to inform you of someone they know who has been injured or killed on a motorcycle. Non motorcycle people are always quick to point out this factoid to those of us in the motorcycle community. Usually in gruesome detail. As an FYI, motorcycles don’t really care to hear about these stories.

Recently I came across a YouTube video that is a true inspiration. It’s a video of a racer who doesn’t have full use of his legs yet manages to race his motorcycle. I’m not going to spoil it by telling you what happens in the video.

It’s more impressive to watch the video. Interestingly the racer seems to just ignore his “handicap” and get in the race.

There are hundreds, if not thousands of videos very similar to this one.

Someone has a perceived challenge or hurdle and essentially just ignores it and carries on.

When I was learning to play guitar I nearly threw in the towel because some chords seemed impossible, especially the dreaded F chord. Then I came across a video of a man in California who plays guitar with his feet because he has no arms. Of course you would see this, be thankful you have limbs and say to yourself, “If a guy can play guitar with his feet, I should be able to at least hack out an F chord.

To watch video, click here.

In business there are many hurdles, challenges and roadblocks in front of us. We can blame many things; funding, the economy, government, workforce, the competition and a whole host of other reasons.

Many of you reading this are probably considered a Type A personality. When disappoint arrives (and it arrives for everyone) it can upsetting and disorienting. But how we handle that disappointment and adversity is what ultimately defines us, makes us unique and an inspiration to others. As difficult as it may be, if you accept your setbacks and handle it right, what you think might be a failure can become the reason for reinvention and inspiration.

Achieving your goal doesn’t necessarily make you successful. No particular job success can define us. How we handle adversity and challenges in our lives and how we rise to meet those hurdles and challenges does.

Race on.

New Guidance from the DOL on Classifying Employees & Independent Contractors Ben Menzel, Relationship Manager, HNI

Many of the businesses we work with are faced with the decision of whether to classify workers as employees or independent contractors.

This topic has grown in interest over the past several years due to increases in hiring activity and increases in enforcement.

In a recent memo, the U.S. Department of Labor provided some helpful insight to how the law should be applied.

Pros and Cons of Different Worker Classifications There are advantages and disadvantages to each classification – and major consequences for misclassifying your workers.

If the worker is an employee, for example, the employer has significant control over the worker’s actions, duties and responsibilities. With this comes liability on the part of the employer for certain employment-related taxes as well as including the worker’s wages for purposes of workers’ compensation and unemployment insurance.

If the worker is hurt on the job or terminated, the business may also be faced with workers’ compensation or unemployment claims.

Meanwhile, if the worker is an independent contractor, the business cannot exert as much control over the worker, whether with respect to the worker’s duties and responsibilities, length of the working relationship, or how many hours and when the worker must perform the work.

At the same time, if the worker is an independent contractor, the business is not liable for taxes for the worker, and does not run the risk of claims for workers’ compensation or unemployment.

Choose Your Classification Carefully Worker classification is important in many industries, including construction, transportation, cleaning services, and many others. Determining whether a worker is classified as an employee or independent contractor is often difficult and involves a great deal of “grey area” -- but misclassification can have tremendous consequences.

If not approached with caution, businesses could be faced with class-action lawsuits by workers claiming they are employees. In addition, the U.S. Department of Labor consistently pursues instances of misclassification.

If a company is found liable for misclassifying employees as independent contractors, the business could owe back pay and other charges, as well as suffer the cost of the litigation (not to mention damage to the company’s brand and reputation).

6 Things to Consider When Classifying your Employees For these reasons and others, whether an individual is an employee or independent contractor is a crucial determination.

To assist with this, the courts have set forth six factors to consider: 1) the extent to which the worker's services are an integral part of the employer's business 2) the permanency of the relationship 3) the amount of the worker's investment in facilities and equipment 4) the nature and degree of control by the principal 5) the worker's opportunities for profit and loss 6) the level of skill required in performing the job and the amount of initiative, judgment, or foresight in open market competition with others required for the success of the claimed independent enterprise (Refer to the U.S. Department of Labor, elaws – Fair Labor Standards Act Advisor, at http://www.dol.gov/elaws/esa/ flsa/docs/contractors.asp for more on these 6 items.)

Where the DOL’s New Guidance Comes In In a recent memo, the U.S. Department of Labor provided some helpful insight into these six factors.

For example, with respect to the worker’s opportunities for profit and loss (#5 on the list), the DOL distinguished between a worker’s ability to work more hours or take on additional projects (a characteristic of an employee) from a worker’s ability to make managerial decisions such as hiring/firing and purchasing materials or equipment (something that an independent contractor could wield control over).

Regarding the permanency of the relationship (#2 on the list), the DOL distinguished between those circumstances where the permanence or indefiniteness were due to the worker’s own business initiatives (the mark of an independent contractor) from those that were due to industry characteristics such as part-time work (most likely someone who should be classified as an employee).

The DOL also downplayed the significance of the degree of control by the principal (#4 on the list), saying this factor should not play an “oversized role.”

As a reference, the full text of the DOL’s recent memo can be found at this link.

Given the importance of this issue and the consequences of misclassification, businesses must carefully wade through this determination.

Need help determining whether your workers are appropriately classified? Contact an HNI representative, we would be happy to assist and share what others in the industry are doing with respect to this issue.

Solid Pro-Small Business Reforms Advance in U.S. House to Improve Capital Access Karen Kerrigan, SBE Council, Washington D.C.

Access to capital and streamlining and reducing government paperwork are two priority issues for entrepreneurs and small businesses. So it was great to see eight pieces of bipartisan legislation focused on these important areas pass the U.S. House by a voice vote during the week of July 13.

On July 13, four bills sponsored by House Small Business Committee members were favorably voted upon.

“These bills will help veterans start new businesses, modernize a microloan program that that can help entrepreneurs get off the ground, strengthen thriving public-private partnerships through SBICs, and make sure that the government is prepared to help communities rebuild in the aftermath of disasters,” said Chairman Steve Chabot (R-OH).

The bills include: H.R. 2499, “Veterans Entrepreneurship Act of 2015ʺ″: Waves guarantee fees for loans to veterans by the Small Business Administration.

H.R. 208, “Superstorm Sandy Relief Act of 2015“: Reopens the SBA’s low interest disaster loan program following Sandy for one year, and requires the SBA to make clarifications to the disaster loan application process and to develop plans to improve its disaster response.

H.R. 1023, “The Small Business Investment Company Capital Act of 2015ʺ″: Increases the cap from $250 million to $350 million the amount that may be leveraged for small businesses under the SBA’s Small Business Investment Company (SBIC) program. This change will support successful SBIC’s that run multiple funds, with no cost to taxpayer.

H.R. 2670, “Microloan Modernization Act of 2015: Contains important reforms that will help startups and small businesses: loan management flexibility for SBA lenders, and additional funding opportunities and repayment flexibility for small businesses and entrepreneurs.

Improving Capital Formation, SEC Compliance and Filing On July 15, the House passed (by voice vote) four bills that ease regulatory burdens and streamline procedures for small companies in a variety of areas that will improve capital formation, the capital raising process, and access to the public markets.

“SBIC Advisors Relief Act” (H.R. 432): Fixes an unintended consequence of Dodd-Frank, eliminating the duplicative regulation of advisers to SBICs, thus allowing capital that is currently diverted on unwarranted regulatory compliance and fees to flow directly to entrepreneurs and small businesses.

“Holding Company Registration Threshold Equalization Act of 2015” (H.R. 1334): Essentially makes a correction to an oversight in the JOBS Act, which will make the shareholder threshold registration for savings and loan companies the same as for bank holding companies.

“Small Company Simple Registration Act” (H.R. 1723): Allows small firms to reference Securities and Exchange Commission (SEC) Form S-1 on other registrations and filings going forward, which will provide regulatory and paperwork relief.

“Improving Access to Capital for Emerging Growth Companies Act” (H.R. 2064): Streamlines the process and steps for small companies that plan to offer an Initial Public Offering (IPO).

SBE Council also supports the Streamlining Excessive and Costly Regulations Review Act (H.R. 2354) and the Encouraging Employee Ownership Act of 2015 (H.R. 1675) – two bills that passed out of committee. SBE Council is pushing for a full floor vote on these two bills, which will help modernize the regulatory system and stock option reporting to help small firms compete, grow, and succeed.

Too often we hear negative news coming out of Washington. The week of July 13 was a good one for small businesses in the U.S. House. Now it’s time for the U.S. Senate to quickly take up these bills, and send them to President Obama’s desk.

Karen Kerrigan is president & CEO of the Small Business & Entrepreneurship Council

Grace Matthews Releases Report On Adhesives & Sealant Sector Each quarter, IBAW member Grace Matthews publishes a newsletter that provides commentary about trends in the chemical industry. The newsletter can be viewed online here.

The summer 2015 edition of Chemical Insights is focused on the adhesives and sealants market and how it continues to evolve through technology and the changes in the economy.

The publication also includes a list of recent M&A transactions, as well as the Grace Matthews Adhesives & Sealants Index.

If you would like a print copy, please contact Michelle Tveten at mtveten@gracematthews.com.

Real Short-Sightedness: Hillary’s Capital Gains Tax Proposal Ray Keating, Chief Economist, SBE Council, Washington D.C.

In a July 13 speech, presidential candidate Hillary Clinton declared, “Today’s marketplace focuses too much on the short-term, like second to second financial trading, and quarterly earnings reports, and too little on long-term investments.” In a catchy political phrase, Clinton is calling this “quarterly capitalism.”

This type of declaration is not new. Assorted liberal politicians have leveled such accusations in the past. But as an economist, few things make me laugh harder and louder then when a politician decides to lecture private-sector businesses for having a short-term outlook. It’s just so rich in irony, not to mention firmly rooted in ignorance of how the economy and investment works.

The “shortsightedness effect” and politics.

Few institutions in life are more short-term focused than government and politics. Too many politicians specialize in gaining votes and political support in the short run at the expense of budgetary and economic health in the long run.

Government budgets rank as models of short-term thinking. At the federal level, assorted programs, including Medicaid, Medicare, Social Security, ObamaCare, corporate welfare and a wide array of subsidies, make clear that a great deal of political decision-making is short-term in nature. That is, benefits now, and the heck with future costs.

Meanwhile, tax policies based on class warfare, that is, higher tax rates on successful individuals, entrepreneurs, investors and businesses, might appeal to certain groups of voters, but such policies only serve to drain resources away from business start-ups and growth, and job creation.

In fact, economics specifically identifies the “shortsightedness effect” regarding politics and government, whereby a bias exists for elected official to institute programs that offer clearly defined current benefits, and push costs off in the foggy future.

Clinton’s Proposal As part of the remedy for her assumed private market short-termism, Clinton wants to raise the capital gains tax rate by imposing a sliding scale as to how long an asset is held.

Currently, the top individual tax rate on capital gains for assets held more than a year is 20 percent plus the 3.8 percent ObamaCare tax, for a total rate of 23.8 percent. For assets held less than a year, the top rate is the same as the personal income tax rate, that is, 39.6 percent plus the 3.8 percent tax for a rate of 43.4 percent.

Adding in the 3.8 percent ObamaCare tax, Clinton would impose a 43.4 percent capital gains tax rate on assets held less than 2 years, 39.8 percent for those held 2 to 3 years, 35.8 percent for assets held 3 to 4 years, 31.8 percent on those held 4-5 years, 27.8 percent for assets held 5-6 years, and 23.8 percent for only those assets held at least 6 years.

Oh yes, and do not forget that capital gains are double taxed, that is, business profits are taxed at the firm level – a corporate rate of 35 percent – and then capital gains are taxed.

A Bad Deal for Entrepreneurs and Capital Access This dramatic increase in the capital gains tax would reduce incentives and resources available for investment in entrepreneurship, business growth and job creation. It would be bad news for small businesses, their employees and the overall economy.

Meanwhile, trying to manipulate investment decisions via this capital gains tax increase, if it even worked, would only serve to make capital markets less liquid, push investors to stay in less beneficial investments, and limiting access to capital for many entrepreneurial ventures.

The question simply is: Why does Clinton want to penalize an investor who sees a new, innovative entrepreneurial venture?

Investors have every incentive to seek out the most valuable investment ventures, and to invest in innovations and inventions leading to high growth businesses. Limiting investment options by arbitrarily raising the capital gains tax rate for assets held for certain periods of time has nothing to do with sound economics and tax policy, and everything to do with failing to understand how markets work, and/or following short-term political impulses at the expense of the economy in order to get votes.

Imagine that – short-term thinking among politicians? Yes, there’s that shortsightedness effect.

Technology Update Breakfast!

Join us at the Marcus Majestic Theater for a Windows 10 Intro and Cyber Crime WhoDunIT: 10 Steps to Reducing the Biggest Risk.

See the new Windows 10 in action! Learn about the new model, features and benefits.

WhoDunIT? Hear real life stories and learn how you can protect you and your company from hackers and cyber crime.

Everyone is at risk in today’s connected world.

Date: Tuesday, September 15th, 2015

Location: Marcus Majestic Theater new See the 770 N. Springdale Road ction.

10 in a s w Waukesha, WI o d Win

Schedule: 8:30 am Registration & Breakfast 9:00 am Windows 10 Intro 10:00 am Cyber Crime WhoDunIT 10:45 am Questions

Cost: Free! Register Today!

Email: register@ctaccess.com Call: 262-789-8210

2015 Industrial Q2 MarketBeat Update Report Produced by C&W | The Boerke Company Research Department and Industrial Team’s Jeff Hoffman & Chad Vande Zande

JULY 20, 2015

2015 Q2: Industrial Market Hits Acceleration Phase MARKET OVERVIEW

Half way through 2015 the industrial real estate market in Milwaukee is entering into the mature phase of the current real estate cycle. The 2nd quarter amounted to an additional 1.23 million square feet of absorption in South East Wisconsin which has dropped the vacancy rate to 4.6%. Total absorption for the year is now in excess of 4 million SF. There is unquestionable upward pressure on market rents.

LOCAL MARKET TRENDS

The market recovery has finally filtered into Milwaukee County with 1.6 million SF of absorption in the first ½ of the year. Milwaukee County had been the laggard throughout the recovery.

The “Last Mile” concept is catching on in Milwaukee. All the rage in the distribution/ fulfillment world is getting product to the customer in the “last mile” of delivery.

We are predicting a handful of national credit tenants in this space that will be announced in the 3rd quarter in infill areas with access to a vast amount of rooftops.

“Big Box” product is in “Big” demand. CenterPoint's 411,000SF spec building in Pleasant Prairie is spoken for with MRS. The 280,000 Staples building in Oak Creek has a lease out for the entire building prior to it hitting the market, the 190,000SF Miller Brands building in Wauwatosa is Under Contract and the 250,000SF Oilgear facility is under negotiations.

Tenants are entering into long term lease renewals.

We renewed 330,000SF of leases in the 2nd quarter and are set to extend an additional 250,000SF in Q3.

Tenant’s are entering into 5-10 year extensions which we have not experienced since the mid 2000’s.

Tenant’s see stability in the market, however long term lease renewals would project stable if not unspectacular overall growth.

Sale/Leasebacks are coming back into play. Another indicator of the robustness of the capital markets is the resurgence of Sale/ Leasebacks. Bon Ton recently executed a $88 million Sale / Leaseback of 3 stores, Proteus Packaging (Quad) completed a two building 496,000SF deal and Waukesha Foundry just entered into a long term sale lease back of their 230,000 SF plant for $11.2 million.

HEADWINDS COMING? The local industrial user market has slowed in Q2.

The Manufacturing Index for Southeast Wisconsin and Northern Illinois contracted for the 3rd consecutive month registering a 46.55 in the month of June.

Increased Global uncertainty with the steep sell off in the Chinese stock market, ongoing Greece/Euro challenges, and the Iranian Nuclear deal are creating challenges for manufacturing (Energy & Exports).

HEADWINDS COMING IN THE INDUSTRIAL MARKETPLACE?

The “Last Mile” concept is catching on in Milwaukee. All the rage in the distribution/ fulfillment world is getting product to the customer in the “last mile” of delivery.

3rd Quarter Prediction: Handful of National Credit tenants in this space will be announced in infill areas with access to a vast amount or rooftops. : FOR MORE INFORMATION, CONTACT: Cushman & Wakefield | The Boerke Company 731 N Jackson Street, Suite 700 (414) 347-1000 www.boerke.com

Jeff Hoffman, SIOR, CCIM Principal, Industrial Team (414) 203-3038 jhoffman@boerke.com

Chad Vande Zande, SIOR Principal, Industrial Team (414) 203-3049 cvandezande@boerke.com

© 2015 Cushman & Wakefield, Inc. | The Boerke Company. All rights reserved.

The Cost of Higher Education Steve Kohlmann, IBAW Executive Director There’s an old saying that goes “Everybody complains about the weather, but nobody does anything about it.”

That same philosophy could be said for the cost of a college education - “Everybody complains about the cost of college but nobody does anything about it.”

With America’s youth being steered to college and graduating with crushing debt only, in the end, to find little employment opportunities, it might be time to start taking a closer look at why it costs so much.

One area to look at is the cost of salaries of staff. You may find it interesting to learn what individuals are making and the amount of staff at the UW System. Below is a sample page taken from The Business Journal of Milwaukee’s website.

Click here to view all the pages in the directory.

University of Wisconsin System salary database

Screen shot of Milwaukee Business Journal UW System Database.

Introduction to Candidate Westlake David Westlake (R), Candidate, Wi-99 Assembly District

Wisconsin has undergone a significant transformation in the last 5 years. We’ve seen a number of positive changes and common sense reforms come from the Executive and Legislative branches of the Wisconsin State government, but now is not the time to rest! We have a unique opportunity to take the national stage and set an example of how limited government that protects individual liberties and encourages entrepreneurial activity can improve everyone’s standard of living. We’ve got to capitalize on this momentum and keep Wisconsin moving forward. This is precisely why I’m running for the 99th Assembly District.

Like you, I am a small business owner, so I know the daily challenges we face. If elected, I will be a hawk on constant lookout for government fraud, waste, overregulation, unnecessary spending and excessive taxing. I know that these, coupled with overreach from bureaucratic agencies, are small business’ largest barriers to success in Wisconsin and across America, and I will do my part to expose and eliminate them. There is already enough competition in the marketplace--we don’t need any more from the government!

“I fundamentally believe that you make better decisions for yourself and about your future than the government does.”

- Dave Westlake (R) Candidate, WI-99 Assembly District

Wisconsin is just getting started cleaning up the fiscal damage done, and I plan to maintain the momentum so our children and grandchildren do not have to inherit the massive debt and an out-of-control spending of our past.

It is my priority to do everything possible to keep Wisconsin a great place to live, work, play, do business, and ultimately retire in for generations to come.

Small business is the fuel in our state’s and nation’s economic engine, and those of us on the front line know what it takes to move forward. I ask for your support because together, we can continue to make progress in Wisconsin together.

Dave’s biography: Dave Westlake is a family man, entrepreneur and small business owner from Hartland. He and his family are members of Oakwood Church where they volunteer on the welcoming team and helped kick off a community outreach committee that provides temporary housing to homeless families in Western Waukesha County called "Family Promise." He also volunteers at Rescue Missions in cities that he frequents for business.

Dave graduated from the U.S. Military Academy at West Point in 1995 and earned an MBA from the University of Chicago Booth School of Business in 2005. He garnered Dean's List honors at both institutions. He remains connected to West Point by serving on Congressman Jim Sensenbrenner's Service Academy Selection Committee, where he interviews and helps select for nomination academy candidates from across Wisconsin's 5th Congressional District.

Dave is a veteran and former combat engineer with the 10th Mountain Division (Light Infantry) at Ft. Drum, NY. More recently, he is the founder and President of ATLAS, a software company whose flagship product is the most powerful and easy-to-use asset management software on the market. ATLAS has clients throughout the United States and the Asia-Pacific rim. Through ATLAS, Dave supports numerous community programs, as well as nationwide charities such as Wounded Warrior Project.

A lifelong hockey player, Dave now coaches several of his children’s youth hockey teams, teaching teamwork, sportsmanship, and self-determination. As an extension of this, he founded Puck Commander, a company whose product helps hockey players score more goals. All of Puck Commander's profits are donated to organizations that fight childhood cancer. Dave is also a member of Ducks Unlimited and a Life Member of the NRA, both of which reflect his dedication to protecting Wisconsin's natural resources, as well as our 2nd Amendment rights.

In the 2010 election cycle, Dave was the first conservative to announce a candidacy against then-Senator Russ Feingold and was among the first to recognize the incumbent's vulnerability. While his tireless statewide grassroots campaign came up short in the primary, Dave immediately refocused his campaign team's efforts to help Senator Johnson win the general election.

Dave also parlayed his 2010 statewide campaign network into a major force to support Governor Scott Walker in the early days of his administration. Dave was the original organizer of the "I Stand with Scott Walker" rally in Madison and spoke on behalf of Governor Sarah Palin at the event.

Dave is a natural leader, a hard worker, and is dedicated to moving Wisconsin forward.

Hire Good People and Leave Them Alone!

Jeff Kortes, Employee Retention Specialist As an employee retention speaker, I am often asked what I feel is one of the keys to retention. My response…hire good people and leave them alone. All too often we hire good people and we micromanage them to death. They become demoralized, disengaged and frustrated and then they quit.

The best example I can give is the young woman who works at the car wash that I go to every week. It can be 95 degrees and a thousand percent humidity and she is smiling and a joy for the customers to interact with. It can be 10 degrees below zero and she is smiling and a joy for the customers to interact with.

There are times I go to the car wash because as I drive by I notice she is working!

Being an employee retention expert, I ALWAYS ask people why they work in the jobs they do. When I asked she said, “I enjoy the people and my supervisor lets me do my job without bugging me all the time.” Clearly this young lady likes people.

It shows.

Add the fact that her boss is smart enough to leave her alone makes a difference.

Micromanaging an employee will kill your employee retention. When you micromanage it sends the message that you don’t trust the person and trust is at the heart of employee retention. If you don’t trust the person because they don’t have the skills, train them, coach them and get them up to speed so they are a good employee. After you do that…leave them alone and let them do their job!

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

This is open to anyone 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.

Click here to register for the August 10th roundtable.

The IBAW Legislative Team

Mike Kuhn G r e g Ly o n s

Jeff Hoffman

Charles Fry

The IBAW Legislative Team keeps our members up to date and informed on business issues coming out of Madison and Washington D.C..

Wisconsin’s only Certified Brand Consulting firm.

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IBAW MEMBERS QUALIFY FOR DISCOUNTS ON SEROKA’S SERVICES!

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.

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2015 Membership Committee

Steve Kohlmann IBAW

Scott Seroka Seroka Branding

Charles Fry Robert W. Baird

Mary Stark Waddell & Reed

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 articles. 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.

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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.

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