December 2014 IBAW magazine

Best Practices

Sales Roundtable

December 19th

December 8th

DECEMBER 2014

Build a Business, Help Your Community Dean Rennicke, VP Marketing, Kapco

INSIDE THIS ISSUE:

KEATING: A NEW OPPORTUNITY FOR PRO-GROWTH TAX REFORM

HUTTON: LEGISLATIVE UPDATE

JERKEN: TOP 5 MYTHS ABOUT IMPORTING FROM CHINA

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.

W i s h i n g Yo u a v e r y H a p p y H o l i d ay S e a s o n and Prosperous New Year

Sending warm wishes for a Happy Holiday Season & Happy New Year.

IBAW MEDIA LINK Why Are Men Leaving The American Workforce?

It was a great time to be an American man in the workplace after World War II. Hiring was strong for both white-collar jobs and factory work while industries like autos, aviation and steel were booming.

By the 1960s, that started to change.

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 Treasurer Casey Malek Sikich Directors

Link To Article

Bart Adams Sikich Ann Barry Hanneman Simandl Law Group S.C Heather Baylor Park Bank

A story by URI BERLINER

Richard Blomquist Blomquist Benefits Lisa Mauer Blackhawk Industrial Jason Kuwayama Godfrey & Kahn Tom Boelkow BSI Design, Build, Furnish

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

Craig Coursin MSI General Robert Gross Gross Automation

Business Education Series FIVE STAR Programing

“Business, Branding and Community” Friday, December 19th Location: The Wisconsin Club, 900 W. Wisconsin Ave. Time: 7:00 AM - 9:00 AM Cost: $32.00 IBAW Members $42.00 Guests

In 1972 built on a dream and hard work, Tom Kacmarcik Sr. opened the doors of Kapco, Inc. with a facility on Hickory Street in Grafton, Wisconsin.

In addition to providing quality metal products was a desire to give back to the community.

Dean Rennicke VP Marketing, Kapco Metal Stamping

COST:

In 1985 Tom Kacmarcik Jr. and Jim Kacmarcik joined the management team opening up our current headquarters on Badger Circle in Grafton in 1999. Kapco has added two facilities in West Bend, Wisconsin along with two more buildings in Grafton. In 2011 Kapco ventured out of Southeastern Wisconsin and took over some of the Polaris Industries plant in Osceola, Wisconsin.

Over the years they have seen the Kapco workforce grow from a husband and wife team to over 400 employees within the various family of companies and are proud to call Wisconsin home and tie their success to the community they are in.

IBAW Members....$32.00 Guests....$42.00 Includes high level networking and plated breakfast!

Attire: Business professional.

Registration now open!

Click here.

Send your Marketing Team!

LOCATION

THE WISCONSIN CLUB 900 W. WISCONSIN AVE. MILWAUKEE

7:00 AM

REGISTRATION & NETWORKING

7:30 AM

BREAKFAST & PROGRAM

9:00 AM

PROGRAM ENDS

The

BIG

E ve n t i s B a ck !

Friday, January 16th Location: The Wisconsin Club, 900 W. Wisconsin Ave. Time: 7:00 AM - 9:00 AM Cost: $32.00 IBAW Members $42.00 Guests

THE

BIG EVENT

ON: WISCONSIN! “The Success of Wisconsin Business” Join the IBAW as we kick off 2015 with a meeting of inspiration and success.

We’ll celebrate Wisconsin business with a panel discussion of successful companies sharing their dynamic stories of hard work, challenges and entrepreneurial true grit determination which has made them leaders in Wisconsin.

We’ll also hear remarks from Governor Scott Walker (invited) and Senator Ron Johnson (invited) - Other elected representatives will also be in attendance.

Special Invited Guests

Panel Representatives

Governor Scott Walker (Invited)

Another successful company confirming soon!

Another successful company confirming soon!

Senator Ron Johnson (Invited)

Panel Moderator: Mark Sabljak Publisher, The Business Journal

Save the Date - Registration Opens Soon!

Hands Off Our Internet, Mr. President Steve Kohlmann, IBAW Executive Director Remember life before the Internet? If you wanted information about a local business you had to look up that business in a big book with yellow pages. The businesses inside would pay a fortune to advertise in it. If you wanted a commercial of your business you had to pay big bucks for a production team to make it then pay a TV station to advertise it on the television. The Internet has changed that.

The Internet is one of greatest technological achievements in recent memory and maybe even in our lifetime. The ability to easily - and economically - access information and communicate is something that if you told someone we would all be walking around with miniature flat screen TVs (iPads) even as recently as thirty years ago, those people would have thought you were mad as a hatter.

Since its creation (courtesy of Al Gore), countless have benefited from its tremendous power to inform us, fuel economic growth and propel us into the 21st Century where information is easily accessed. The Internet is as strong a protector of our First Amendment rights as any, and it enables aspiring entrepreneurs to access infinite resources and new markets. How many Apps have been made fueling productivity? The Internet’s importance to everyday life, and the future of our country, cannot be understated.

All of us use the Internet daily whether it’s in our personal life or in a business setting. It’s a vital tool for many of us when conducting business and life without it would seem impossible. Having access to it in a restrained fashion would be equally difficult to imagine.

That’s why we must be wary of the recent announcement by the White House that it is encouraging the FCC to classify Internet access as a Title II telecommunication service, rather than its current classification as an information service – a decades old classification that has been upheld by the United States Supreme Court and which has brought us the tremendous Internet benefits we enjoy today. The current classification is working, and a radical change now will only cause harm to Internet users and our nation’s interests.

The Internet is constantly evolving, helping us to move our economy and country forward to compete on a global scale.

Regulating the Internet with an outdated 20th Century law does the opposite and moves us backward.

President Obama asking the FCC to support this should have red flags going up all over, this coming from the guy who promised us lower healthcare costs and “If you like your plan, you can keep your plan”. Title II can only stifle innovation, growth and it will harm users, not help them. As with many government regulations, this would be just the tip of the iceberg of unintended consequences affecting users, providers, mobile Apps and services.

What’s more, reclassifying broadband Internet access services under Title II won’t actually address the concerns of some.

For example, Title II does not give the FCC authority to ban paid prioritization for services, as public utilities have always been allowed to offer prioritized services. Slapping Internet service providers with decades old regulations won’t solve any problems; rather it hinders future Internet growth - and that translates in hobbling business.

I can only hope the FCC, as an independent agency, makes the right decision and keeps the light touch regulatory classification in place.

We must support the Internet as it is today -- a catalyst of entrepreneurship and information freedom.

Today’s Internet is open, robust, and vibrant, and I urge our leaders in Washington to do everything they can to keep it that way.

IBAW: First Wisconsin Business Organization Going to Mars IBAW will be the first business organization in Wisconsin going to the red planet.

As a way to get the public excited about the space program, NASA invited the public to register their names with the space organization, selected names would then be included on a microchip which will be placed onboard the Orion spacecraft heading to Mars. IBAW’s Executive Director, Steve Kohlmann, took advantage of promotion registering the IBAW name with NASA in early October. On October 23rd, NASA confirmed the IBAW name was accepted sending Kohlmann an official NASA “Boarding Pass” for the Orion spacecraft.

The IBAW name, along with others who registered, will begin the journey on a dime-sized microchip when the agency’s Orion spacecraft launches Dec. 4 on its first flight. But the journey doesn’t end with the test flight. After returning to Earth, the IBAW name will fly on future NASA exploration flights and missions to Mars.

"NASA is pushing the boundaries of exploration and working hard to send people to Mars in the future,” said Mark Geyer, Orion Program manager. "When we set foot on the Red Planet, we’ll be exploring for all of humanity. Flying these names will enable people to be part of our journey."

The deadline for registering a name for Orion’s test flight closed Friday Oct. 31.

"This goes to show IBAW is thinking about the future of business,” said Kohlmann. "When the first business opens up on Mars, IBAW will already be there."

An official NASA “boarding pass” confirms the IBAW name was accepted with the space agency and will fly on the Orion spacecraft test flights and future flights to Mars.

Legislative Update Rep. Rob Hutton, Representative 13th Assembly District

I want to take this opportunity to thank the voters of the 13th Assembly District to elect me to serve as their state representative for a second term,” said Representative Hutton. “I am honored to have the ability to continue help Wisconsin move forward as we continue to get Wisconsinites back to work and return their hard earned tax dollars to them.

Study Committee on the Review of Criminal Penalties This summer I had the honor to be selected to Chair the Study Committee on the Review of Criminal Penalties. This opportunity has allowed the legislature to start the discussion of major corrections reform in Wisconsin and allowed us to examine the workings of our criminal justice system. The committee was comprised of individuals with professional experience in our justice system which included district attorney’s, judges, public defenders, law enforcement, and law professors. The committee’s scope was “to review the penalties for misdemeanor and low-level felony offenses. The committee shall: determine whether current misdemeanor or low-level felony penalties are appropriate; whether any crimes should be classified; and whether any offenses are outdated or should be decriminalized.”

With the scope set out before us the committee decided to form two subcommittees one which was tasked with identifying potential obsolete misdemeanors and the second which was tasked with classifying misdemeanors outside the criminal code and reviewing the appropriateness of misdemeanor penalties. Both subcommittees created guidelines and worked with state agencies to complete their tasks and have recently submitted their recommendations to the full subcommittee.

These recommendations will be reviewed by the full committee for input from each member followed by a vote to recommend legislation to the Joint Legislative Council Committee. By the conclusion of this study committee we hope to have legislation that will help remove any obsolete misdemeanors and will classify the majority of misdemeanors that lay outside of the criminal code to help provide uniformity throughout the state in our criminal justice system.

For more information on the study committee please visit legislative council’s website at http://docs.legis.wisconsin.gov/ misc/lc/study/2014/1191.

Wisconsin Forward Agenda Recently, Wisconsin Assembly Republicans released our Forward Agenda that will continue to provide reform in Wisconsin to continue moving our economy in the right direction and providing opportunities for Wisconsinites to find employment and achieve their education goals.

As we saw after Tuesday, Wisconsin voters have reaffirmed that the past four years of Republican policy have been working by expanding the majority in the Assembly and Senate while re-electing Governor Walker for a third time. We now have outlined our initiatives so Wisconsinites can see the path we want to pave for Wisconsin for decades to come. Outlined below are several key initiatives in our plan. To view the full Forward Agenda please visit the following link.http:// legis.wisconsin.gov/eupdates/asm63/Vos_ForwardAgenda2014_Final.pdf Education • Investing heavily in education • Continuing the UW System tuition freeze for in-state undergraduates

Economy Quality of Life • Lowering taxes • Reducing dependency on government programs • Reducing and eliminated government red tape • Reducing fraudulent activity of government programs • Controlled state agency growth • Reviewing regulatory licensing requirements

Rob Hutton, a resident of Brookfield, was elected to represent the Wisconsin's 13th Assembly District in November 2012. During his first term he served as Vice-Chair of the Committee on Urban and Local Affairs. He also served on the committees on Small Business Development, Urban Education, and State Affairs and Government Operations.

Contact the office of Rep. Rob Hutton at rep.hutton@legis.wisconsin.gov for any assistance.

A New Opportunity for Pro-Growth Tax Reform Ray Keating, Chief Economist, SBE Council, Washington D.C.

The political wave that hit American politics this past Election Day must not go to waste when it comes to moving public policy in a different, productive direction. Perhaps the greatest opportunity to make a significant contribution to boosting our economy in the near term and over the long haul is comprehensive, pro-growth tax reform.

Over the past eight years, in assorted ways, public policy at the federal level has imposed additional costs and created uncertainties that were central to pushing our economy into a deep, long recession and a subsequent poor economic recovery. These public policy woes most certainly include taxes.

Obama Tax Increases: Consider, for example, the significant tax increases imposed during the Obama years, including higher personal income, capital gains, dividend, and death taxes, and new or increased taxes on insurance companies, pharmaceutical manufacturers, and medical device makers. For good measure, in his 2015 budget plan released earlier this year, the President called for further tax increases, including higher capital gains and death taxes; a major tax hike on carried interest; elimination or limitation of assorted deductions raising taxes on income earners in the 33%, 35% and 39.6% tax brackets; and increased levies for financial and insurance firms, and domestic energy producers.

Uncertainty and Investment Roadblocks: And then there’s the uncertainty factor that restrains economic activity, including business investment. For example, from 2010 to 2013, small business (Section 179) expensing of capital expenditures was allowed up to $500,000. That is, small businesses could immediately and fully deduct capital expenditures in the year made. However, at the start of this year, that level fell to a mere $25,000. Interestingly, this is an area where President Obama and the new Congress will be in agreement, and could serve as a starting point for a larger tax reform effort.

New Taxes on the Internet: In addition, the Internet Tax Freedom Act is due to expire on December 11. It was originally supposed to expire on November 1, but President Obama signed an extension into law in September. Since 1998, this measure has been renewed at various times. ITFA places a moratorium on state and local taxes on Internet access, and on multiple and discriminatory taxes on e-commerce. This is an area of current and ongoing uncertainty that could be solved by both sides of the aisle coming together to make permanent the ITFA ban on these destructive levies – even before the new Congress take over.

Globally Noncompetitive Corporate Rate: Another major area of taxation that makes the U.S. and American businesses uncompetitive in the global marketplace is our high corporate income tax rate. The corporate income tax rate comes in at 35 percent, and can top 41 percent when state tax rates are factored into the equation. That’s the highest tax rate among developed nations. And it’s a negative for small businesses, as well as for large ones, given that among employer C Corporations (latest Census Bureau data), 99.2 percent had less than 500 workers, and 86.4 percent had fewer than 20 employees.

There seems to be some bipartisan agreement that this tax rate needs to come down, and dramatically so. Indeed, reducing the corporate tax rate must be part of any tax reform effort, and if achieved, it would be a big plus for investment and business growth in the U.S. At the same time, this is where more serious challenges and differences emerge that must be dealt with if reform is to move ahead. Specifically, while tax reform efforts in the past have generally strived to maintain revenue neutrality, there has been a great deal of talk this time around, including by the Obama White House, to use corporate tax reform as a means for increasing taxes.

Of course, much more would have to be addressed under comprehensive tax reform, including personal income taxes (after all, more than 92 percent of businesses file taxes as individuals – e.g., sole proprietorship, partnerships and SCorps. – and therefore pay personal income taxes rather than corporate income taxes); capital gains taxes; death taxes; taxes on foreign income of businesses; and so on.

Finally, it also must be recognized that the tax increases of recent years have served to weigh down economic growth by shifting resources away from the private sector and to government, while also diminishing incentives for working, investing and entrepreneurship. Indeed, our economy has badly under-performed in terms of economic, income and employment growth for several years now. Therefore, a true, pro-growth tax reform effort can in no possible way raise taxes, but instead, must roll back the tax hikes of recent years.

Pro-growth tax reform needs to focus on substantially reducing tax rates on personal and corporate income, eliminating levies on capital gains, and killing death taxes, for example.

Is the new Congress capable of achieving true, pro-growth tax reform? I see no reason why not. The big question, of course, is whether or not President Obama can see the enormous economic benefits of reforms that effectively contradict most of the tax policies he has imposed and advocated throughout his presidency, and sign such reform into law.

Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council.

Keating’s latest book published by SBE Council is titled Unleashing Small Business Through IP: Protecting Intellectual Property, Driving Entrepreneurship and available from Amazon.com here.

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Top 5 Myths About Importing From China Benjamin Jurken, The ABC Group

On the heels of the APEC Summit in Beijing, China and the US have recently announced an agreement to eliminate tariffs on hi-tech products which will mostly likely result in these two great economies being tethered closer than ever before. In reflecting on the state of US/China trade relations over the past fifteen years and our firm’s experience in aiding hundreds of clients in multiple industries, it is amazing how many myths still permeate throughout our country relating to importing from China. From misconceptions on supplier capabilities to macroeconomics, thousands of US importers active in China continually fail to minimize management expenses and capitalize on significant opportunities.

For those currently importing, I challenge you to look beyond the following myths and create stronger, more profitable global companies.

Top 5 Myths...

We have the best supplier in China Too often, US importers fall in love with their Chinese suppliers which can lead to increased supplier dependency and a loss in competitive advantage over more nimble competitors in the market. On the surface, importers should feel confident adding a Chinese supplier to their supply-chain that successfully passed through a comprehensive supplier vetting process, but you never know if there is a supplier better suited for your company if you don’t look. According to the Bureau of Labor Statistics, in 2009 (the last year of available data) China employed over 99 million individuals in manufacturing positions compared to only 14.1 million individuals in similar positions in the United States. With such an expansive and ever evolving marketplace along with significant over-capacity in many industries, companies should seek to regularly re-examine the performance of their existing Chinese suppliers and identify alternate or suitable replacements on a regular basis.

Increased labor rates have made China uncompetitive You are right, wages have grown tremendously over the past decade in China, somewhere close to 290% in some areas.

But do you know what the current hourly wage is for a Chinese employee in a manufacturing setting‌$1.74. That is approximately 8.8% of the average hourly wage paid in the United States not counting additional benefits. So how does this impact you? For many, suppliers can use media headlines as an opportunity to raise prices on their customers above and beyond increased cost of labor, but if you know what percent of your products price is comprised of labor, you can ensure any price increases are warranted. In turn, wages are rising in China but still remain competitive compared to the United States.

Alibaba will help us find a qualified Chinese supplier For businesses that have global supply-chains and genuinely want to extend their supplier network into China, any online manufacturing directory or portal should be used with an abundance of caution. Over the years, many unsuspecting companies have struggled with trading companies proclaiming to be manufacturers, poor product quality, and other unscrupulous business practices. China like many other foreign markets is not an easy place to do business, so while it may take extra time and energy, all suppliers, regardless of how they were identified should vetted and audited in-person to verify the supplier is truly a reputable company.

Chinese suppliers can be effectively managed with quarterly visits and nightly emails The key here is “effectively.” Frequency of supplier visits and daily communication is a poor barometer of effective management. With vastly different cultures and time delays, countless companies have been lured into the quicksand of over-traveling to China while still failing to resolve recurring issues. When it comes to traveling to China, simpler is better. Send the right personnel: procurement, engineering, operations, etc. Issue pre-meeting objectives to all suppliers in advance to frame on-the-ground discussions. And most importantly-hold all parties accountable for their performance.

Our suppliers do not outsource any processes Veteran importers are the most likely to believe this myth. The truth is, Chinese suppliers often outsource various manufacturing processes from machining to finishing. This can be due to in-house capacity constraints or because a long time customer (You) are seeking new products that are not capable of being made by your existing Chinese supplier. The key here is, a supplier outsourcing a product or process is not your main concern, rather it is not knowing that a process has been outsourced that should keep you up at night.

In debating which of the many, many myths around importing from China would make this list, it became clear that like any myth, there is a kernel of truth to all of these statements but that with further examination business leaders can move beyond this stale rhetoric. In the coming years and decades, it will be interesting to see if these same myths will soon be applied to other emerging markets. Do I see “Puruvian Nuevo Sol Appreciation Against Dollar Creating Case for Re-Shoring” in my future?

About the ABC Group LLC: The ABC Group LLC is an international supply-chain and sales channel management firm focused on assisting companies more effectively conduct business throughout Southeast Asia. By creating transparent business relationships and offering a diverse array of services tailored to meet our clients’ specific goals, we aim to create significant long term value for stakeholders.

For additional information please visit www.theabcgroupllc.com

Welcome A New IBAW Sponsor!

Jessica Oldenburg, CEO Matthew Bare, Chief Relationship Officer 200 South Executive Drive, Suite 101 Brookfield, WI 53995 866-477-9030 HRS | Human Resource Services, Inc. opened its doors in July 1983 as a comprehensive employer resource for HR Management, Employment Law and Organizational Development solutions. These concepts were set in motion by our founding Chairman, Marvin J. Pinter, who served as an active IBAW leader, and we’re proud to continue that legacy.

Today, HRS has remained integral to legislative discussion and pioneering new solutions. Our early foothold has translated into critical C-suite discussion with extraordinary command of employment law, workforce productivity, fiscal prudence and organizational branding. Continuing a steadfast home base in metro-Milwaukee, our Washington, DC office and nationwide satellites grant empowerment and access to HRS and HRS employer clients. We thank IBAW for partnering with access, influence and information!

Key HRS contacts for IBAW members are Jessica Ollenburg, Chief Executive Officer and Matthew Bare, Chief Relationship Officer.

We look forward to hearing from IBAW members!

Welcome A New IBAW Member!

Vickie Taylor Arthur J. Gallagher & Co. 17035 Wisconsin Avenue, Suite 135 Brookfield, WI 53005 262.792.2263 vickie_taylor@ajg.com Vickie Taylor is an Area Vice President Sales Executive of a worldwide insurance & risk management brokerage firm. She has been with Arthur J. Gallagher for 11 years with 30 years of experience in the industry. Vickie specializes in complex workers compensation, large property, disaster planning and recovery training.

Her client base consists of manufacturers of many types, including food processors, foundries, forging, and other metal manufacturers, where she designs programs to reduce her clients cost of risk. She is a national speaker on various risk management topics.

Her education includes the Insurance Executive Program at the John Walker College of Business at Appalachian State University.

Vickie met her husband Tom at age 15 where they reside today in Thiensville, WI. She also has a son, currently attending the Valparaiso University College of Engineering.

How to Come Out On Top in a Down Economy John Lauber, Lauber CFOs In a down economy Cash is King and you need to operate accordingly. Keep in mind that in down markets risk increases dramatically as you may not be able to cover up mistakes by growing revenue.

Here are some additional thoughts: • React to current conditions not conditions you wish existed.

• •

Adhere to your credit policies. Don’t pick up your competitors credit problems.

Keep the calculation of your cash breakeven up to date and manage your business with that in mind.

•

Make use of an interactive financial model to test what if scenarios.

•

If your cash position allows, consider investing in activities like marketing and engineering that will better position you for the recovery.

• •

Use updated forecasts to drive staffing levels.

Use the tight job market to upgrade your staff.

•

Knowing profitability by customer, product or segment allows you to focus on areas where you enjoy better

•

margins.

Know your costs so that you can make strategic pricing decisions.

• •

Focus on segments of your business that are hurt the least by current conditions.

Focus on customer retention and reactivating former customers.

•

Evaluate why customers are not buying and address any factors you can control like offering a lower cost, no frills

•

alternative or extending payment terms.

Make sure you stay close to your key accounts. Your competitors will be gunning for them.

•

Reposition your message to deal with current realities, i.e. promote your equipment rebuilding services not just new equipment sales.

•

Review advertising and marketing expenditures to ensure they are focused in areas that will provide the greatest

•

return for the money.

Be alert to the impact of decreasing order size on your fixed costs per order.

•

Suppliers are looking for volume. Now may be a good time to consolidate and negotiate long term supply contracts.

•

Keep up communications with your lender. Make sure you don’t give them any surprises.

• •

Review your insurance policies and adjust sales and payroll estimates to reflect current realities.

Require an extra level of approval for all discretionary purchases to ensure they are appropriate given current

•

conditions.

Check to see if you may be able to realign the frequency of various service and supply contracts with current activity levels. Consider, uniforms, rugs, shop rags, equipment maintenance, waste removal, etc.

•

Work off inventory levels to conserve cash. $0.60 on a dollar today is worth more than “maybe“ getting full value down the road.

• •

Shift costs you can’t control to your customer. For example change prepaid freight to FOB Plant.

Keep an eye on your competitors and be prepared to move quickly if they falter.

•

Take steps to speed up your financial information. Use estimates if necessary to improve the timeliness of your numbers. Use this information to quickly respond to changing conditions.

SALES: Best Practices ROUNDTABLE

Monday, December 8th 7:30 AM - 9:00 AM.

This month we’ll wrap up the year with a review of discussions from the last six months and talk about goals for the 2015.

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 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.

Location: CTaccess Conference Room 740 Pilgrim Parkway, Suite L3 Elm Grove

Coffee provided by CTaccess, bakery provided by IBAW. Cost: Free - A benefit of IBAW membership.

(Registration is required)

Registration is open! Click here/

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ESGR is a Department of Defense office, established in 1972, to promote cooperation and understanding between National Guard and Reserve service members and their civilian employers.

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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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1

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

IBAW Legislative Priorities Online

State Legislative Priorities 2014 State Legislative Priorities

- Workforce Development / Technical College Benchmarks - Pro Growth Tax Reform - Address the Structural Deficit of WI DOT - Predictable Sand Mining Regulation

1- Workforce Development / Technical College Benchmarks 2 - Pro Growth Tax Reform 3 - Address the Structural Deficit of WI DOT 4 - Predictable Sand Mining Regulation

Click here to view.

Hi-Crush Partners LP

National Legislative Priorities - Delay of the Affordable Care Act - Support the Existing Level of the Federal Minimum Wage

2014 National Legislative Priorities

- National Energy Policy Capitalizing on our Strengths - Increase Access VISAS for Immigrants with Advanced Degrees & Start Ups

1- Delay of the Aordable Care Act 2 - Support the Existing Level of the Federal Minimum Wage 3 - National Energy Policy Capitalizing on our Strengths 4 - Pro Growth Tax Reform

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5 - Increase Access VISAS for Immigrants with Advanced Degrees & Start Ups

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