February 2016 IBAW magazine by Steve Kohlmann

FEBRUARY 2016 February 8th

February 19th Joe Garza, Superintendent, New Berlin School District

IBAW SALES ROUNDTABLE

"Preparing the Future Generation for Career Readiness"

Inside This Issue:

VASTARDIS: REMAIN AT THE FOREFRONT OF THE MARKET BY PROMOTING TRANSPARENCY

KEATING: BAD FOURTH QUARTER GDP REPORT WITH DOWNSIDE RISK FOR 2016

SEROKA: MAKE SURE YOUR BRAND IS VIEWED AS A SERIOUS CONTENDER

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.

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

IBAW MEDIA LINK Knetter on Wisconsin Economics _________________________________________________________

Economist Michael Knetter shares some thoughts with IBAW on Wisconsin’s economic outlook

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 Treasurer Casey Malek Sikich

To watch, click here.

Recap on Export / Trade Discussion _________________________________________________________

IBAW tackled the topic of Export / Trade at our January meeting. Here’s a short video recap.

Directors 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 Robert Gross Gross Automation

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

Friday, February 19th, 2016 "Preparing the Future Generation for Career Readiness" Joe Garza, Superintendent, New Berlin School District Given our changing demographics, our projected workforce needs, and the cost of higher education, the need for young people to better understand their options after high school has never been more critical. - Do schools understand the needs of our projected labor market? - What role do they play in developing critical employability skills? - How are they guiding young people to seek out a broad range of options? - How do they connect students interested in employment to local and regional employers? - How can the private sector get involved? Joe Garza became superintendent of the School District of New Berlin in July 2011, after serving for four years as assistant superintendent. He came to New Berlin from the Almond-Bancroft School District in Portage County, WI, where he was a secondary school principal and then the district’s superintendent. Garza earned his bachelor of arts in education and music at Luther College in Decorah, IA,. He received his masters in educational leadership at Marian University (formerly Marian College of Fond du Lac) in 2003. He's currently pursuing his Ph.D. at Cardinal Stitch University. Garza is active in community and education circles. He is a guest lecturer at Marian and Cardinal Stritch Universities and was a member of the recent Joint Legislative Council Special Committee on Improving Educational Opportunities in High School. He has a keen interest in college and career readiness for students. Also top of mind is the impact a successful, relevant K-12 education has on workforce development and economic development.

LOCATION

THE WISCONSIN CLUB 900 W. WISCONSIN AVE. MILWAUKEE

7:00 AM

REGISTRATION & NETWORKING

7:30 AM

BREAKFAST & PROGRAM

9:00 AM

PROGRAM ENDS

IBAW Members: $32.00 Guests: $42.00 Includes plated breakfast • Attire: Business Professional

Registration now open! Click here.

Bart Adams Steve Kohlmann, IBAW Executive Director It is with great sadness that I share with you the news our good friend, mentor and IBAW board member Bart Adams, of Sikich, passed away last week from a heart attack. He was 61. There was no indication of anything wrong prior to the attack and it was very unexpected. Sue and I were on the way back from business in Madison and my phone rang, caller ID showed that it was Bart Adams. It was always nice to chat with Bart, his calls were always lighthearted and fun, even when it was IBAW business. There’s was always joking and laughter in our conversation. But this time it wasn’t Bart on the phone but one of the partners at Sikich who had the horrible task of delivering the news. As he spoke, he talked of a heart attack and as the words are coming out of the phone I’m starting to process how fast I could get to the hospital. But that wouldn’t be necessary, Bart had passed away. When you hear of such devastating news, it comes like a punch in the stomach delivered by a heavyweight champion - you’re left stunned and breathless. It seems impossible. You try to recall; “Didn’t I just talk to him? Yes, I did. Just the other day.” How do I begin to memorialize a guy who was so nice and gave back so much to the community? What can I say here to cover this man’s life? I can’t, I’m still stunned of the news. Bart was involved with so many activities, groups and organizations his passing will leave a huge hole in our community and Wisconsin. I can’t event imagine the loss to his family. We’re all going to miss him.

Life Legacy Bart passed away unexpectedly at the age of 61 and was Born to Eternal Life on January 26, 2016. Beloved husband of Michelle (nee Terrien). Loving father of Marie (Jason), Brett (Morgan) and Brad Adams. Loving son of Robert and Virginia Adams. Dear brother of Matt, Julie (Pat) and Lisa (Andy). Preceded in death by his brother Mark . Also survived by nieces, nephews, other relatives and friends. Bart was a partner at Sikich and a member of many professional, civic and religious organizations. Visitation will be held at the Funeral Home on Friday, February 5 from 4 PM until the time of prayer service at 7 PM. Additional visitation will be held on Saturday, February 6 at St. Joseph Catholic Church, Wauwatosa (12130 W. Center St.) from 10 AM until the Mass of Christian Burial at 11 AM, followed by committal services at Mt. Olivet Cemetery, Milwaukee. Memorials appreciated to Sisters of the Divine Savior, St. Joseph Parish, Wauwatosa, St. Anne’s Salvadorian Campus or the Potawatomi Area Council Boy Scouts Becker Ritter Funeral Home: 14075 W. North Avenue Brookfield.

EVERYTHING YOU NEED TO KNOW IN 1 PAGE WISCONSIN INDUSTRIAL RE Report Produced by C&W | The Boerke Company’s Research Department and the Industrial Team’s Jeff Hoffman & Chad Vande Zande

JANUARY 2016

BANNER 2015 PAVES THE PATH FOR NEW SUPPLY MARKET OVERVIEW New product is finally hitting the market with nearly 1.9 million square feet (msf) of speculative buildings being delivered through spring of 2016 and an additional 1 msf of product on the drawing board. The market is reacting positively to new product as both Liberty’s 171,000 sf spec in Oak Creek and Wangard’s 60,000 sf spec in West Allis are fully leased as of Q4. Massive absorption in the Milwaukee NW submarket in 2015 in B/C space also means great news for new developments in 2016 as commodity product is being taken out of the marketplace. Metro Milwaukee is the 2nd best performing like kind market nationally within the Cushman & Wakefield network with a vacancy rate of 4.8% (Orange County, CA was 3%).

KEY TAKEAWAYS FROM 2015 Local Manufacturing has been hit hard, Milwaukee has experienced 10 consecutive months of ISM contraction and the national level hit a 6 year low in December. On the warehousing/distribution side, haulers are benefitting from lower fuel costs, however macro concerns caused orders for heavy trucks to plunge by 37% in December. While spec product is being delivered into the market, the amount is still very modest compared to total inventory. As an example, the North market is only

delivering 146,000 SF of spec, or 0.36% of the total NAIOP competitive inventory, and the West market is delivering 1.19% of total NAIOP competitive inventory. Markets are still functioning very efficiently. Why hasn’t there been more spec development? Wisconsin has averaged only 1.575% annual GDP growth from 2011-2014.

WHAT TO LOOK FOR IN 2016 Wisconsin GDP will once again fall below 2% due to exposure in manufacturing. Given slow growth and a robust supply pipeline, vacancy rates will likely increase in 2016. Tough to see cap rates compressing further in SE Wisconsin with core cap rates hitting the high 6 range. Value needs to be created through rental rate growth and term. Tenants have very limited options for Class A amenity space in the Milwaukee North and Waukesha West market with 7 buildings available. With deals advancing on 4 of these options, the market could be left with 3 A spaces by the end of Q1 2016. As tight as these two markets are, Racine County is experiencing a glut of new development with the delivery of 660,000 SF of spec space in 2016. With this added inventory, vacancy could spike to north of 10% by mid-2016.

There is nearly 1.9 million square feet of speculative buildings being delivered by spring of 2016 and additional 1 msf of product on the drawing board. KEY THEME FOR 2016: General industrial market slowdown is hitting when brick &

mortar supply is ramping up. Keep a close eye on the longevity of the occupier slow up.

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

Independently Owned and Operated / A Member of the Cushman & Wakefield Alliance

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

Make Sure Your Brand is Viewed as a Serious Contender Scott Seroka, Seroka Brand Development

In nearly every industry, there are usually one or two brands people perceive as being the best – the brands people knowingly pay a premium for because being associated with the best not only makes a statement, it also makes customers feel confident and secure. In very close proximity to the “best” brands are runner-up brands that are often times 95% as good, but typically cost substantially less. And then, of course, there is “everyone else” – those mediocre-tolow quality brands adequate for low-expectation buyers mostly interested in finding a good bargain. In highly competitive and over-saturated industries, achieving runner-up status is no small feat, and one to be very proud of. For example, in the world of digital cameras, Leica and Hasselblad may be the brands many photographers and enthusiasts aspire to purchase, despite their intimidating price tags. However, the vast majority of professional photographers are exceptionally pleased with the performance Canon, Nikon and SONY cameras provide, all of which could be categorized as runner-up brands in the industry. In the world of hand tools, Snap-On may be perceived by many mechanics as the very best, but many find that Mac Tools and Matco Tools are just about as good, and cost less. If you’re confident that your brand is MUCH better than it is currently perceived, there are a number of things you can and should do to elevate your rank in the hearts and minds of the customers you know would benefit from what you offer. 1. Ask your customers if they would be willing to provide you with a written or video testimonial that c/would be posted to your website, YouTube channel or LinkedIn page. To increase your chances of getting a “yes,” offer to write or script the testimonial for them. With this approach, you’ll be amazed at how willing your customers will be to help you out. Testimonials from customers build brand credibility and brand consideration almost instantly. 2. Make sure you provide a clear and unbiased comparison of your products to your competitors’, and highlight those areas where your product offers a better value to end-users under different applications. 3. Provide a short and engaging product demo video so that potential customers may view how your products perform and operate under a variety of different situations. 4. Approach the media to seek opportunities for interviews and offer to write a feature story about how your brand, business or product is unique and superior to others in your industry. 5. Create a written or video blog (vlog) and speak to the interests of your customers. When people understand how you think and witness your body language through a video, it helps to build trust and respect. A written blog is strong, but a vlog would be even stronger. Elevating your brand perception and winning new business must start with answering the question, Why should I buy from you? If you don’t tell them, they won’t know and will buy from someone else who speaks up.

AT&T to Launch Blazing Fast Gigabit Internet Speeds in Milwaukee Area MILWAUKEE, Dec. 7, 2015 – AT&T1 announced today it is planning to expand the availability of ultra-fast speeds through AT&T GigaPowerSM to homes, apartments and small businesses in parts of 38 additional metros across the United States, which will total at least 56 metros served, including in the Milwaukee area.2 With the launch of our ultra-fast Internet service in parts of 2 of these metros today – Los Angeles and West Palm Beach – AT&T GigaPower is now available in 20 of the nation’s largest metro areas. Internet speeds up to 1 gigabit per second over the AT&T GigaPower network let you instantly access the latest online movies, music, games and more.3 AT&T GigaPower can also improve your experience when connecting to the cloud and videoconferencing, and gives you the speed to power all of your devices. “We’re excited to expand our ultra-fast Internet service to residents and small businesses in the Milwaukee area,” said Scott T. VanderSanden, president of AT&T Wisconsin. “This investment in our fastest Internet speeds will not only help small businesses compete in a global economy, it will also offer customers the high-speed connectivity so many demand in today’s video centric world.” “High-speed Internet connections are improving virtually every aspect of our lives – from education to health care to employment opportunities to public safety,” said Milwaukee Mayor Tom Barrett. “Today’s announcement that AT&T plans to offer its ultra-fast fiber network in the Milwaukee area is great news for residents and small businesses alike.” Nearly 2 years ago, we successfully launched the first AT&T GigaPower metro in Austin, Texas. This launch led to a major expansion in multiple metros beginning in 2014. We recently marked a major milestone deploying the AT&T GigaPower network to more than 1 million locations, and we expect to more than double availability by the end of 2016. We’ll continue to roll out our fastest Internet services over a 100% fiber network to reach more than 14 million residential and commercial locations. AT&T GigaPower gives customers some of the fastest online speeds available anywhere. You can download 25 songs in less than a second, a TV show in three seconds or your favorite HD movie in less than 36 seconds.4 AT&T GigaPower customers also have access to the latest Wi-Fi technology, making it possible to enjoy our best in-home Wi-Fi experience. You get faster Wi-Fi speeds, expanded coverage and support for all your devices. With DIRECTV now a part of the AT&T family, customers on the AT&T GigaPower network in the Milwaukee area will be able to choose between our award-winning DIRECTV or U-verse TV services. When you sign up for qualified DIRECTV programming, you get immediate access to a broad range of TV content on your compatible mobile device through our DIRECTV application, even before we install your TV service, through our “Walk out Watching” program.5 In the home DIRECTV customers with qualified programming have access to more than 315 channels, more than 200 in fulltime HD, and the most comprehensive selection of sports programming. You can watch the programming you love, live or On Demand and experience it on almost any screen. DIRECTV On Demand offers access to more than 10,000 movies and shows to high-speed Internet customers with connected set-top boxes, including the hottest new Pay Per View releases.

Customers on the AT&T GigaPower network in markets eligible for AT&T U-verse TV service can watch and record up to 6 HD programs at the same time, and will be able to record and store more of your favorite shows – up to 900 hours of SD or 330 hours of HD programming. We’re continuing to work with local leaders within the 21 state service area who are interested in expanding the availability of the 100% fiber-optic AT&T GigaPower network to consumers and small businesses. Frost & Sullivan recently recognized AT&T for its leadership in high-speed Internet services. It awarded AT&T the 2015 North American Competitive Strategy and Innovation Leadership of the Year Award for Broadband. The analyst firm praised AT&T for its “aggressive pursuit of higher bandwidth access” for customers through its AT&T GigaPower network initiative. For over 135 years, AT&T has invested in its Wisconsin networks, employees and communities. Between 2012 and 2014, AT&T invested nearly $900 million in its best-in-class wireless and wired networks in Wisconsin, driving a wide range of upgrades to reliability, coverage, speed and performance for residents and business customers. For more information on where the AT&T GigaPower network is and will become available, visit att.com/ gigapowermap. AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc. Initial availability limited to select areas. May not be available in your area. 3 Internet speed claims represent maximum network service capability speeds. Actual customer speeds may vary and are not guaranteed. Actual speeds vary based on factors including site traffic, content provider server capacity, internal network management factors, customer device capabilities 1 2

and use of other U-verse services. Max speeds may not be realized if 2 or more HD shows viewed at same time. For more info, go to www.att.com/ speed101 4 Speed/time estimates are examples. 5 Limit 5 shows/devices at once. Channels vary. Access expires at earliest of 14 days/system installation. Data rates may apply. Add’l restr’s apply.

About AT&T AT&T Inc. (NYSE:T) helps millions around the globe connect with leading entertainment, mobile, high speed Internet and voice services. We’re the world’s largest provider of pay TV. We have TV customers in the U.S. and 11 Latin American countries. In the U.S., our wireless network has the nation’s strongest 4G LTE signal and most reliable 4G LTE. We offer the best global coverage of any U.S. wireless provider*. And we help businesses worldwide serve their customers better with our mobility and highly secure cloud solutions. Additional information about AT&T products and services is available at http://about.att.com. Follow our news on Twitter at @ATT, on Facebook at http://www.facebook.com/att and YouTube at http://www.youtube.com/att. © 2015 AT&T Intellectual Property. All rights reserved. AT&T, the Globe logo and other marks are trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners. Signal strength and reliability claims based on nationwide carriers’ 4G LTE. Signal strength claim based ONLY on avg. 4G LTE signal strength. 4G LTE not available everywhere. *Global coverage claim based on offering discounted voice and data roaming; LTE roaming; voice roaming; and world-capable smartphone and tablets in more countries than any other U.S. based carrier. International service required. Coverage not available in all areas. Coverage may vary per country and be limited/restricted in some countries. Cautionary Language Concerning Forward-Looking Statements Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results may differ materially. A discussion of factors that may affect future results is contained in AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update or revise statements contained in this news release based on new information or otherwise.

Welcome a New IBAW Member! CarePlus Dental Plans provides dental benefit plans to corporations, government agencies and individuals that ensure Wisconsin residents are given an opportunity to receive high quality dental care with minimal financial burden. Dental Associates is the exclusive provider for CarePlus Dental Plans. Dental Associates is Wisconsin’s largest family-owned group dental practice with 12 dental centers throughout eastern Wisconsin. Dental Associates provides complete family dental services, including both general and specialty dentistry. Shay Sherfinski Sales Account Executive 3333 N. Mayfair Rd., Suite 311 Wauwatosa, WI 53222 D (414) 778-5225 C (262) 422-5411 E ssherfinski@careplusdentalplans.com careplusdentalplans.com

2016 WAUKESHA COUNTY RESOURCE DIRECTORY FEATURES:

Welcome to IBAW Special Section

Minimum Ad Size 3.8” W x 2.25” H

Cost is $129 Including color Reserve your space today! Contact:

Craig Hauser @ 262.513.2698 • chauser@conleynet.com BRAND YOUR BUSINESS YEAR-ROUND!

The Freeman Newspapers’ annual resource directory will connect your brand with more than 52,800 households in Waukesha County. This comprehensive and user-friendly directory is packed with local information that residents and visitors can use year-round.

Delivers Superior Exposure

Full-Year Shelf Life

• 132,000 + potential readership • Publishes in four trusted publications throughout Waukesha County

• Long shelf life offers higher readership and pass-along

High Quality Publication • Listings are updated each year • Premium-quality design & printing ensures outstanding ad reproduction

Publishes: Thursday, February 25 - Oconomowoc Enterprise Saturday, February 27 - Waukesha Freeman Saturday, March 5 - Brookfield & Elm Grove This Month Monday, March 21 - Lake Country This Month

DEADLINE: THURSDAY, FEBRUARY 4

Remain at the Forefront of the Market by Promoting Transparency Anthony Vastardis, MBA, CEO, Dental Associates In a business world driven by technology and consumers who have an endless stream of information at their fingertips, it is becoming increasingly challenging to connect with consumers directly and establish relationships. Consumers turn to online sources for information to help them choose a brand, and customer loyalty tends to be more difficult to garner because of the constant noise from not only consumers’ friends and family, but now scores of other people on the Internet. So now the question becomes, how do we emerge as trusted leaders in our industry? Third party sites, such as Google Reviews, Yelp and Facebook, host unsubstantiated reviews from consumers and pose a challenge because anyone can write reviews on those sites, including those who haven’t used a business’ services. To offset this, our company decided to use an independent third party to measure patient satisfaction and hear directly what our patients were saying about us. We added these real, unedited comments and ratings about our clinics and doctors to our website so current and new patients could make an informed decision and also create credibility. A company’s ability to adapt and market to consumers in a way they identify with is crucial to remaining relevant in the modern market. People are changing the way they look at businesses as a whole. Because of the influx in the amount of information accessible, it’s more difficult for them to sift through and decide what’s credible and what’s not. By putting these independent reviews and ratings directly on our site, we were able to establish a greater trust with consumers looking for a new dental clinic before they made an appointment. Transparency is a process and not an event. Consumers want to rely on independent and objective ratings that foster trust and reliability. In a recent survey, 88% of consumers said that they always or sometimes read online customer reviews to determine if a local business is a good business, which proves online reviews are as important as word-of-mouth. By providing transparency on our own website, our providers and clinic staff are more accountable for their actions and understand that they play a critical role in forming a patient’s opinion on the care they received at our practice. This transparency has resulted in a steady increase in new patients. If you’re looking to make the move to increasing transparency in your company, here are some things to consider: Assess your organization’s readiness for internal transparency first o Communicate rationale and advantages to all employees o Build internal trust via clear and consistent communication Celebrate and promote successes by recognizing high performers and promoting to the entire company Then identify the key strategies needed to implement external transparency o Counteracting lack of employee acceptance for survey results o Being aware of your consumers’ reliance on online ratings o Use communication, recognition and rewards for your staff to further their acceptance of external strategy Transparency promotes consumerism. Although total transparency isn’t always feasible, sharing certain information means that the consumer will better identify with your company’s culture and mission. Consider what your company can do to strengthen its identity in the market and use transparency to be an innovative and trustworthy leader in your industry.

Tuesday, February 16, 2016 Wisconsin will hold a statewide primary election on Tuesday, February 16, 2016. The polls will be open from 7:00 am until 8:00 pm. The primary election is for the position of Justice of the Wisconsin Supreme Court, a nonpartisan office. Other cities, villages and towns may have a primary election for other offices too. Please check with your municipal clerk for additional information.

Bad Forth Quarter GDP Report With Downside Risk for 2016 Ray Keating, Chief Economist, SBE Council, Washington D.C. The U.S. economy’s poor performance actually got much worse late last year, according to the first estimate of fourth quarter GDP from the U.S. Bureau of Economic Analysis. Real GDP growth slowed dramatically in the fourth quarter to a mere 0.7 percent, compared to a sluggish 2.0 percent in the third quarter and 3.9 percent in the second. Indeed, 2015 was sandwiched by two dismal quarters, that is, 0.6 percent first quarter growth and 0.7 percent in the fourth. For the entire year, real GDP advanced by a sluggish 2.4 percent, for the second year in a row. Looking inside the fourth quarter data, the negatives were widespread. A Mixed Story on Investment Overall private investment dropped by 2.5 percent. Business investment (that is, real fixed nonresidential investment) fell by 1.8 percent, with structures investment down 5.3 percent and equipment off 2.5 percent. Intellectual property investment inched ahead by 1.6 percent. However, residential investment was up by 8.1 percent (perhaps the only positive number in this quarterly report). Trade Suffered On the trade front, real exports fell by 2.5 percent, showing diminished international opportunities for U.S. businesses. Meanwhile, real imports edged forward by only 1.1 percent, which reflects the very slow growth in the domestic economy. Exports suffered throughout 2015, while imports slowed dramatically over the year. Some Find Something to Cheer About Some analysts were pleased with 2.2 percent growth in the fourth quarter for personal consumption expenditures. I’m not sure why, though. That was a dramatic decline from both the second and third quarters, and in general is a sluggish number. The bottom line is that the U.S. economy slowed dramatically in the second half of 2015, particularly in the fourth quarter. And that slowdown was from an already poor level of growth. In SBE Council’s Chief Economist’s Outlook 2016, I concluded: “Looking ahead, without dramatic shifts in tax, regulatory, trade, and government spending policies in a pro-growth direction, and a change in monetary policy to being focused on price stability, few reasons exist to expect anything more than a continued under-performing economic recovery. This assessment is not about diminished expectations. Indeed, it is the antithesis to such assumptions. If the U.S. gets the policy mix right, there is no reason that the economy cannot grow at the historic average of 3.3 percent annually, or even the 4.4 percent average achieved during recovery-expansion periods… “In fact, the potential for additional regulation during Mr. Obama’s last year in office, along with serious questions about the U.S. industrial sector and trade, notable downside risks lurk for the 2016 economy. To be sure, the state of the U.S. economy beyond 2016 will be decided by the ideas offered by presidential and congressional candidates, and by voters at the ballot box in November 2016.” Will Uncertainties of a Big Election Year Weigh on Growth? One other point is worth considering for 2016. That is, entrepreneurs, businesses and investors have been operating in an environment of increasing governmental costs and uncertainties for more than eight years now. By definition, some kind of change will occur with the November elections. But since the exact nature of that change is highly uncertain, the risk of added political and policy uncertainty this year could further weigh down risk taking and economic growth. Again, the economic risks for 2016 clearly lie on the downside, with the possibility of a recession in the mix. _______

Business Day in Madison February 24 - 7:30 am - 4:00 pm Monona Terrace Community & Convention Center, Madison $170 per person; $1,250 table of 8

FEATURED SPEAKERS: Stephen Hayes

Ken Gronbach

Click here to REGISTER LARRY KUDLOW

Gov. Walker

Emcee: Charlie Sykes

BUSINESS LEADERS...LEADING BUSINESS

BUSINESS PROGRAMMING • Timely Speakers on Business Issues • A Powerful Resource for You and Your Team

PEER TO PEER NETWORK • Connect With Your Business Peers • Intimate Setting = Meaningful Dialogue

VOICE TO GOVERNMENT • Member Driven Advocacy • Voice on Public Policy Issues

Learn the benefits of membership at IBAW.com

The IBAW Legislative Team

Mike Kuhn G r e g Ly o n s

Jeff Hoffman

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

Charles Fry

Ann Barry Hanneman

SALES ROUNDTABLE "The ninety minutes we spend together is very valuable. It is a confidential environment where fellow business professionals discuss ideas and insights into effective sales and business-building techniques. I would encourage anyone who is in sales to participate in this program."

- Scott Seroka, Seroka Branding

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 next roundtable.

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. Come on in...weâ&#x20AC;&#x2122;re open for business!

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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.

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

2 3

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.

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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As an advocate for small business, the IBAW offers intimate meetings on relevant topics such as Leadership, HR, Sales, and Political Issues. Business Leaders...Leading Business

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