IBAW July 2018

JULY 2018 No Sales Roundtable in July.

On Vacation

July 20th

Monthly Breakfast Meeting

“I Left Corporate Life to Start a Dream Job!” Rob Lewis,CEO, Lewis Station Winery

Returns August 13th

Inside This Issue:

OLESZCZUK: INDUSTRIAL AND CONSTRUCTION SERVICES NEWS

MOORE: FREEDOM: A DIFFERENT DEFINITION

KEATING: ECONOMIC UPDATE: SOLID GROWTH IN RETAIL SALES

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.

Executive Director Steve Kohlmann President Dan Hansen Secretary Charles Fry Baird Treasurer Tony Palmen Sikich Directors Jim Leef ITU AbsorbTech Ann Barry Hanneman Von Briesen Law Office John Weber Hypneumat Jeff Hoffman Boerke Co. Lisa Mauer Rickert Industries Tom Boelkow BSI Design, Build, Furnish Robert Gross Gross Automation Scott Seroka Seroka Brand Development Tom Parks Annex Wealth Management Jake Hansen Jacsten Holding Scott Hirschfeld CTaccess

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

Independent Business Association of Wisconsin

MONTHLY MEETING

Friday, July 20th “I Left Corporate Life to Start a Dream Job” - Rob Lewis, CEO, Lewis Station Winery Why would someone leave a high profile job with a comfortable income to chase a dream?

Meet Rob Lewis, a former high level executive for Wisconsin Vision. Rob left corporate life and is risking it all to follow a dream job of owning his own winery.

How is it all working out? What unexpected challenges were faced along the way?

What does the future look like?

Join us for a morning of entrepreneurial stamina, hope and challenges.

PLUS....

Something VERY special is taking place at Milwaukee Lutheran High School.

Young adults are being exposed to entrepreneurial business ideas, concepts and the free enterprise system. Former Ozaukee County Prosecutor Shannon Whitworth is now teaching these concepts as part of the school curriculum. Learn more about it and how you can help.

Register at IBAW.com

LOCATION

THE WISCONSIN CLUB 900 W. WISCONSIN AVE. MILWAUKEE

7:00 AM

REGISTRATION & NETWORKING

7:30 AM

BREAKFAST & PROGRAM

9:00 AM

PROGRAM ENDS

Same Planet. Different Worlds. Dangerous Times.

Steve Kohlmann, IBAW Executive Director This is the story of two totally different worlds. While the following story is true. The names have been changed for protection. More on that at the end of this story.

Jodi (not her real name) is a white woman in her 30’s. She works in the financial sector and she’s married to an executive who works in a family business. I wouldn’t consider them rich but all indications are they live a comfortable life with their family, in a fairly affluent area. Jodi is fairly liberal in her political viewpoints and doesn’t hold back on her opinions in her social media posts. Very anti Trump, pro Abortion, very easy immigration standards and she’s a very strong advocate for gun control. So much so that if a high profile shooting takes place she’s quick to post about America’s obsession with guns and how the United States should be more like Europe when it comes to controlling guns and by that I mean a complete gun ban.

And now the flip side.

Bob (also not his real name), is a African American male in his late 50‘s. He works in Milwaukee and owns his own business.

I can tell you that Bob’s business is in the restaurant sector but that’s about all I’ll say. The location he works in is not the inner city but is in the area that has a higher crime rate. Chances are pretty good you’ve traveled through this area yourself.

Again, this isn’t considered a dangerous part of Milwaukee but a certain amount of awareness should be exercised when traveling through it.

A while back I was traveling through Bob’s area and decided to stop and visit him and patronize his business. After my purchase I sat down at on a bench just outside his establishment to eat my meal. A few minutes later, Bob took a break and came outside to join me. We started talking about how great the weather was (finally!) and I asked him questions about his business. He mentioned his day starts early - often before dawn - and wraps up in the early evening. Long days to be sure. It was a little bit into our conversation that I noticed Bob had a pistol on his hip. His shirt partially covered it but the way he was sitting exposed the firearm. It was hard to tell whether he was carrying it in a concealed manner and the shirt was riding up, or if he was open carrying and just didn’t care that you saw it. In either case there it was. I didn’t feel threatened by it or uneasy around gun’s presence, it was just odd to see. Let’s face it, you don’t see people carrying a firearm everyday.

Nevertheless, I didn’t feel threatened or concerned Bob was suddenly going to snap and shoot me. Clearly it was there for his personal protection and even Bob felt he was in a area where he needed to carry it. If you were going to rob his place he was perfectly prepared and ready to defend himself and his staff.

We have two people who live in two completely different worlds. Jodi lives and works in a safe environment while Bob lives and works in a area of higher risk. One sees a firearm as a means to carry out violence upon others and one sees it as a means of defense. And one is trying to take away another one’s means to defend and protect himself and she’s very fanatical on the topic, so much so I wouldn’t put it passed her to create a social media firestorm to disrupt his business.

We’re living in dangerous times.

Industrial and Construction Services News Timothy Oleszczuk, Managing Director and Funding Partner, TKO Miller

Employers Add Jobs, Raise Salaries in Tight Labor Pool According to the Associated General Contractors of America, construction employment increased by 17,000 jobs in April and 257,000 jobs over the past year while firms boosted pay to help recruit new workers. Construction employment is at its highest level since 2008. Hourly earnings averaged $29.63 in April, up 3.5% from a year earlier. “Many firms are boosting pay and taking other steps to compete for a relatively small pool of available, qualified workers to hire,” said AGC CEO Stephen E. Sandherr.

Tight Labor Pool

Construction Costs Soar in May, Contractors' Pricing; New Tariffs to Worsen Cost Squeeze Construction costs accelerated in May with steep increases for a wide range of building and road materials, including many that are subject to tariffs that could drive prices still higher. The producer price index for inputs to construction industries rose 2.2% in May alone and 8.8% over 12 months. The tariffs have delivered a surge of orders that mills say exceeds current capacity, a situation that threatens to produce construction delays, budget problems, and possibly cancellations for future projects.

Tariffs and Rising Costs

2018-2019 Vertical Market Series: Construction In a report recently released by the Equipment Leasing and Finance Foundation, equipment distributors and rental companies reported growth in volume, with over 55% indicating their intention to expand. “What we expect from the rental industry is they will increase the size of rental fleets, as they’re saying demand for rental will continue to grow. But as a result, there probably won’t be a significant ability to put higher prices out there,” explained John Crum, head of the construction group at Wells Fargo.

Vertical Market Series

Industrial and Construction Services Transactions April 2018 – H&E Equipment Services Completes Acquisition of Rental Inc. H&E Equipment Services announced it has completed its acquisition of Rental Inc., a non-residential construction-focused equipment rental company with five branches in Alabama and Florida and assets including approximately $35 million of fleet based on original equipment cost.

May 2018 – Privet Fund Management Completes Acquisition of Hardinge Inc. Privet Fund Management has completed its acquisition of Hardinge Inc., an international provider of advanced metalcutting solutions and accessories based in Berwyn, Pennsylvania. Privet acquired all shares of Hardinge stock at $18.50 per share in cash, leading to a transaction value of approximately $245 million.

June 2018 – Clopay Building Products Acquires CornellCookson, Inc. Clopay Building Products, a subsidiary of Griffon Corporation, has acquired CornellCookson for $180 million.

CornellCookson is a manufacturer and marketer of rolling steel door and grille products designed for commercial, industrial, institutional, and retail use.

TKO Miller Market Analysis • TKO Miller is seeing continued high valuations and an abundant use of debt. Despite a slight regression from the

record 8.1X middle market valuation multiple in the fourth quarter of 2017, middle market industrial service businesses continue to transact as the demand from private equity and strategic buyers remains high. • U.S. industrial production continued to ramp up in May, as mining output rose by 1.8% and utilities production rose

1.1%. Compared with May 2017, overall industrial production was up 3.5%. • The recently imposed tariffs of 25% and 10% on steel and aluminum, respectively, are likely to continue to drive

rising domestic metal prices. While it is expected that steel production and prices will rise dramatically in the short run, the response from domestic aluminum producers is expected to be more measured as production of raw aluminum in the U.S. has been steadily declining for decades. The tariff will most likely be reflected in the delivery premium U.S. aluminum consumers pay to producers, which is up about 6% from last year to $0.15 cents per pound.

Middle Market Valuation Multiples

Industrial and Construction Services Valuation Index

Freedom: A Different Definition Robin Moore, Candidate for State Assembly, District 14

One Wednesday morning after a monthly business breakfast at the Machine Shed out in Pewaukee, I decided to let myself get pulled in by all the farmy-kitchy-thingys in the gift shop, instead of rushing off to another meeting. I'm not a shopper so I took the opportunity to look for any thing that would make a nice gift for my mom or one of my sisters.

Well something did catch my eye. One of those blocks of wood with a catchy phrase. It said, “Freedom (n.) When you start living your life fearlessly.” It was red, white and blue, of course. I kind of chuckled to myself in agreement with the quaint little quip, and then kept looking around. But after a minute, I wandered back to the block, picked it up and found myself focusing in on the ‘fearlessly’ part.

Fearless. Fearlessly. I see these words used a lot today, especially in writings for women in business, entrepreneurs, approaching the next chapter of your life etc. Even Tony Robbins talks about being fearless. What really struck a note with me was how that word impacted what I considered to be the regular, old definition of freedom. Basically meaning without restrictions/limitations/confinement . . . Somehow this definition was much more profound – and – freeing.

Whether used as an adjective or an adverb, fearlessly typically is used to describe an action. And usually in the past tense.

‘She was fearless in her pursuit of achieving her goal.’ Or ‘He fearlessly led his team to victory.’ But after seeing this new definition, there's a greater take-away in those sentences.

Fearless in achievement. And the freedom to achieve Fearless in leadership. And the freedom to be that leader.

But it also spoke to me in the sense of what it is I can and will do. More forward looking like you're peering into the possibilities of doing something great, something new. Because I have the freedom to do it - fearlessly

It’s July. The month that we take the time to celebrate our nation’s birthday. You’ll take in the local parade, or your favorite fireworks display or a backyard cookout with neighbors and friends. You’ll hear the word freedom a lot. And you should. That’s what we fought for, right?

Our founding fathers put together a great list of freedoms. OF religion. OF speech. All very important, and such we should not take them for granted.

But take a look at that definition again: Freedom (n.) When you start living your life fearlessly.

What does that definition look like when you apply it to your business?

Our state is at an unprecedented point of low unemployment, and we are about to experience one of the single, largest economic events ever to impact the Wisconsin economy. Tax reforms have allowed many business to unleash long shelved plans for expansions, upgrades, pay increases. As a nation, the level of business optimism is also at a point not recently experienced. Fewer and fewer regulations are allowing businesses the freedom to grow and expand.

Now do it fearlessly.

Freedom to fearlessly create a plan tap into a new market.

Freedom to fearlessly tackle a technology challenge.

Freedom to fearlessly implement a new process to train and retain employees.

Freedom to fearlessly grow, and provide your employees and customer’s with greater satisfaction.

Which is not to say do it recklessly or without a plan. But with more of that optimism, that confidence, decisiveness. And do it fearlessly.

Now what does that look like for you? Living your life with the freedom to be fearless.

Freedom to fearlessly start on your MBA. Freedom to fearlessly learn a new a language for that once in a life-time trip you are going to take – soon!

Freedom to fearlessly __________________________________________ ! I filled in the blank with 'run for office'!

Now there is another interesting word that has a profound impact on the definition. Can you guess which one?

When. Freedom is when you start living your life fearlessly.

Why not today? It’s July. We’re celebrating freedom. Do it fearlessly.

I guess maybe I will just keep that little kitchy block of wood as a gift - to me.

Sales Roundtable...is on vacation in July.

Restarting on August 13th - Save the Date!

Removing obstacles is the key to any sale - but it's also the biggest roadblock to every sale.

Bring your top 3 objections and we'll brainstorm as a group different ways to overcome those hurdles to sales. This meeting will require a short role-play (request for volunteering as a prospect will be made.)

Monday, August 13th, 2018 | Time: 7:30 a.m. - 9:00 a.m.

Location: CTaccess, 740 Pilgrim Parkway, Elm Grove

Big Decisions from the Big Court: Employer Policies Determine “Misconduct” and The Inference Method of Causation Gets Tweaked James Walcheske, Walcheske & Luzi

This week, the Wisconsin Supreme Court rendered two landscape-altering* decisions (*in my world). First, it held in Wisconsin DWD v. Wisconsin LIRC and Beres that if an employee violates an employer’s written absenteeism policy, that employee engages in “misconduct” and is not eligible for unemployment compensation benefits.

Second, in Wisconsin Bell, Inc. v. LIRC, the Wisconsin Supreme Court tweaked the inference method of causation. As it previously existed, this method of causation, typically utilized in disability discrimination cases, made an employer liable for discrimination when it took an adverse action (demotion, termination, suspension, etc.) based on performance deficiencies caused by an underlying disability. As it now exists, employees must establish not only that the employer knew about the individual’s disability, but also that it knew the disability caused the performance deficiencies that are the subject of the adverse action.

Let’s dig in.

Wisconsin DWD v. Wisconsin LIRC and Beres The employer in this case had a written absenteeism policy that states that an employee can be terminated for incurring a single absence during his/her probationary period if he/she does not provide prior notice of the absence. Beres (the former employee) incurred a single absence due to “flu-like” symptoms, did not provide prior notice that she would be absent, and was fired. Thereafter, Beres filed for and was denied unemployment compensation benefits on “misconduct” grounds.

There were a bunch of appeals and here we are. The question for the Wisconsin Supreme Court was what level of absenteeism constitutes “misconduct,” such that an employee is not eligible for unemployment compensation?

Wis. Stat. § 108.04(5)(e) defines absenteeism as constituting “misconduct” as: Absenteeism by an employee on more than 2 occasions during the 120-day period before the date of the employee’s termination, unless otherwise specified by his or her employer in an employment manual of which the employee has acknowledged receipt with his or her signature, or excessive tardiness by an employee in violation of a policy of the employer that has been communicated to the employee, if the employee does not provide to his or her employer both notice and one or more valid reasons for the absenteeism or tardiness.

The Department of Workforce Development (“DWD”) argued that § 108.04(5)(e) allows an employer to make and enforce its own written rules regarding absenteeism and that an employee’s violation of those rules constitutes “misconduct,” resulting in the employee not being eligible for unemployment compensation benefits.

The counter argument from the Labor and Industry Review Commission was that in order for absenteeism to constitute “misconduct,” the employee had to violate the statutory definition of “misconduct” based on absenteeism (as defined above), and that it is not “misconduct” to violate an employer’s rules that are more strict than the statutory definition.

The Wisconsin Supreme Court agreed with the DWD that Wis. Stat. § 104.05(e) allows employers to create and enforce its own written absenteeism policy and that, if an employee acknowledges receipt of that policy and violates that written policy, that violation constitutes “misconduct.”

Employer Takeaway: Make sure you have a written employee handbook and/or written employment policies that include a written absenteeism policy. It would not hurt, in light of this decision, to include a statement in that policy that not only will so many absences or tardies result in termination, but it will also result in the employee engaging in “misconduct.” Be sure to also have written acknowledgements from your employees confirming they received, read, and understand your written handbook/policies.

Wisconsin Bell, Inc. v. LIRC What’s the old saying? “Causation, causation, causation?” Probably not, but that’s what this case was all about.

What’s the inference method of causation you ask? Here’s the setup I like to use: " • An employee has a disability; " • The employer knows about the employee’s disability; " • The employee incurs absences; " • The employee’s absences are caused by his disability; and " • The employer terminates the employee for those absences.

In this scenario, and under the inference method (as it existed), the employer would be found to have terminated the employee based on his disability (aka, engaged in disability discrimination) because the disability caused the absences.

The phrase that was used was that the employer, “in legal effect,” terminated the employee because of his disability.

Specific to this case, Carlson (the former employee) suffers from bipolar disorder. When the symptoms of his disorder became exacerbated, he coped with those symptoms by going into a separate room, deep breathing, and communicating with others for support. Carlson worked in a call center for AT&T. As part of his job, he could make himself unavailable to take calls for various reasons. During his employment, he made himself unavailable for calls for long periods – 20 minutes on the first occasion and 38 minutes on the second occasion – to (allegedly) cope with symptoms of his bipolar disorder.

AT&T fired Carlson for violating its zero tolerance policy for inappropriate use of call-blocking codes to avoid taking customer calls.

Carlson filed a claim for disability discrimination with the Equal Rights Division, which found that AT&T suspended and terminated Carlson because of his disability under the inference method. A bunch of appeals followed and now, this.

The Wisconsin Supreme Court, in finding AT&T was not liable to Carlson, tweaked the inference method to ensure that employees are still responsible for demonstrating causation between the disability and the adverse action. Specifically, it held: “an employer does not engage in intentional discrimination when it bases an adverse employment action on the employee’s conduct unless the employee proves the employer knew his disability caused his conduct.” In other words, an employer’s knowledge of the disability alone is insufficient to establish liability – employees must also prove an employer’s knowledge that the performance deficiency was caused by the disability.

Here, Carlson presented facts showing that he informed AT&T that his performance deficiencies were caused by his disability and that he provided letters from treating physicians regarding the symptoms of his bipolar disorder. However, the Court found such evidence insufficient, because none of the letters “mentioned any causal nexus between his disability and conduct,” and “an employee’s bare assertion of causality cannot be credited as authoritative.” As a result, the record only established that AT&T “knew nothing more than its employee claimed his bipolarism caused his conduct,” rather than establishing AT&T knew the deficiencies were caused by his disability.

Notably, the Court also flipped the script on some case law suggesting that information learned after the termination is relevant to liability, stating: “what Wisconsin Bell (or the ALJ or LIRC, for that matter) learned about the causal connection after the termination is of no import because only contemporaneous knowledge can account for the intent that motivates an action.” So there’s that, too.

Employer Takeaways: This case is a great example of the continuous shifting in the legal landscape of employment law that requires that you stay up to date with new developments and, of course, have a relationship with experienced employment counsel. Also, it never hurts to discuss the potential legal outcomes of a potential termination decision with counsel prior to pulling the trigger.

The Most Important Step In The Brand Development Process Scott Seroka, Seroka Branding It’s 5:56 am when the CEO of a manufacturing firm opens his email. His attention is immediately drawn to the “Urgent” message from the President of his advertising agency, time-stamped at 5:03 am, to call ASAP. When the CEO calls the President’s cell phone, it’s answered before the first ring is heard, and the President of the agency tells the CEO in an anxious, nervous voice that all advertising and marketing must cease immediately as the manufacturer’s brand tagline launched just nineteen hours ago has been interpreted as a vulgar and offensive statement in France – the new market the CEO has been working so hard to penetrate based on its infinite sales and growth opportunities. In that instant, the CEO, in a state of emotional shock, becomes light-headed, starts breathing heavily and breaks into a sweat as he frantically thinks about what he needs to do minimize the potential devastation to his company’s brand.

This scenario is not unfamiliar to any CEO who needed to quickly reverse thrust on his or her marketing campaign because s/he neglected to consider how their brand would be interpreted by different cultures around the globe.

Validation: The vital step in the brand development process that should never be skipped!

Tony Wilson, a franchising, licensing and intellectual property lawyer authored a compelling article about taglines, Brand Slogans Gone Horribly Wrong. After reading it, I was reminded about how critical it is to place new brands through appropriate filters and tests to ensure nothing about the brand could potentially offend any particular person or culture. Sure, there is a cost associated with the validation process, but that cost is negligible when compared to the embarrassment and lost opportunities a company would face if its slogan or tagline alienated a culture of people it was trying to influence. (Note: If you think using Google Translation would be a sufficient way to ensure your brand is clear of potentially offensive misinterpretations by other cultures, just keep in mind that you get what you pay for.)

Below are a few examples of companies that failed to validate their brand taglines: "• Coors’ brand slogan, “turn it loose” meant “suffer from diarrhea” in Spanish "• When Colgate launched a toothpaste in France called Cue, it was also the name of a well-known pornographic "" magazine • A Ford campaign in Belgium used a slogan that translated to “every car contains a high-quality corpse” • When Pepsi had the slogan, “Pepsi brings you back to life,” in Mandarin, it meant, “Pepsi brings your ancestors back "" from the dead” • “Fly in Leather,” a slogan by Braniff Airways, meant “fly naked” in Spanish • One of IKEA’s products, Jattebra, was slang for sex in Thai • The famous “Got Milk?” campaign in Mexico translated to “Are you lactating?”

When entering new markets, your best defense is to have a lawyer or trademark agent check for the colloquial meaning of your brand in other languages. Or, at the very least, ask someone who speaks the language of the land you’re going into if your brand could come off as rude or offensive. If your brand clears this test, you may wish to consider going a step further by getting feedback on how your brand is perceived in the different markets you serve to make sure its message is as strong and as relevant as it can be. The reason is because when doing business abroad, the value propositions you promote in one market may not be as relevant or unique in another, as every market has different competitive landscapes and cultural values. This is the reason I believe an ongoing brand management program is critical to the success of an organization.

Here’s Why...Because We Are the United States of America!

Sue Kohlmann, Kohlmann Management Group I read an item in The Waukesha Freeman recently telling of an agreement to hold temporary reunions of North and South Korean families divided by the 1950-53 Korean War (Police Action). Think about that for a moment. That was over 65 years ago. Families who have been “divided” for more than one generation are allowed to meet from August 20 – 26, 2018. I’m not old enough to have first-hand knowledge of the Korean War but my Aunt Ruthie was there, as a young nurse in a MASH unit. So, her generation and then my generation and then the current generation, if they are all still alive, are allowed to meet on those seven days.

I started thinking about how fortunate we are as the United States of America. We have the liberty to come and go as we please. We can say what we want. We can get together with family and friends whenever we can fit it into our busy schedules. We are able to work in a position we choose. We have our own money to keep or spend on whatever we want, not just need. We have an abundance of products to buy, food 24 hours a day. And now, 2-hour delivery on those items if we live in the service area. We can create, design, research, and discover ways to help others, cure disease, make things better for the world. All because we have the liberty and freedom to do so. We aren’t smarter or better than people in other countries, but we have the conditions which allow that work to flourish.

As we celebrate our Independence this 4th of July Holiday, I’m going to remember what a great nation this is. How those men who put together our new nation thought long and hard about what to put in and what to leave out. How every man and woman who decides to enlist in the military has really given of themselves so I don’t have to. How every single person in this country can do something to make it a better day for someone else – if they choose to do it. And how “We the People” still matters today.

Economic Update: Solid Growth in Retail Sales Ray Keating, Chief Economist, SBE Council, Washington D.C.

The Census Bureau’s report on May retail sales ranks as another positive piece of data on the U.S. economy.

Retail sales were largely expected to increase by 0.4 percent in May, but growth came in at double that rate, registering 0.8 percent. (And even after factoring out gasoline purchases, retail sales increased by 0.7 percent.)

It’s also worth noting that 0.8 percent growth is double the average monthly growth rate looking at data back to 1992.

Over the past year, total retail sales were up 5.9 percent, and 6.4 percent excluding autos, 4.9 percent excluding gasoline, and 5.1 percent excluding both autos and gas.

This is good news for overall economic growth in the second quarter, particularly given the fact that personal consumption expenditures grew at a mere 1 percent in the first quarter, while gross private domestic investment expanded by 7.2 percent. It was the consumption factor that restrained growth in the first quarter.

Therefore, a combination of continued strong business investment and stepped up consumer activity would indicate strong second quarter economic growth. _______ Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council.

: S E L A S

2nd Monday of the Month SALES ROUNDTABLE 7:30 am - 9:00 am Free & open to IBAW members only Register at IBAW.com

Sales can be a tough road of ups, downs, potholes and a few bumps.

But it can also be fast paced, exhilarating and rewarding.

If you’re in sales, you know there are things only other sales people understand; the thrill of scoring the big account, the uncertainty of “let me think about that.”, the frustration of phone calls or emails that don’t get returned. IBAW’s Sales Roundtable is a support and knowledge resource for sales professionals, business owners, marketing and branding experts who are charged with driving sales.

Join us to discuss the strategy, tactics, inspiration, and motivation to increase sales. It’s a FREE benefit of your membership!

Who should attend: • Sales professionals of any level.

• Business owners • Sales Managers • Marketing & P.R. Professionals

“For many years I ran sales meetings for as few as 3 and as many as 22 sales rep’s now I can go as a participant once a month to IBAW’s Sales Roundtable.

BONUS! Join the IBAW Sales Roundtable and get a compact disc with the BEST in Sales Survival Music. Play it to pump you up before that big meeting or to console you if you hit a sales slump. Guaranteed to make life better.

It’s a focused meeting and everyone wants the same thing – to be more effective at selling.”

- Jerry Wick, CEO, Custom Data Too Mail

IBAW Public Policy Committee Hosts Legislative Roundtable in Brookfield

On the afternoon of Thursday, January 25th, the IBAW Public Policy Committee hosted a Legislative Roundtable featuring Senator Lena Taylor, Senator Chris Kapenga, Representative Rob Hutton and Representative Dale Kooyenga, held at the offices of Sikich in Brookfield.

Welfare reform, excessive business regulations and the ever increasing shortage of a competent workforce were the main concerns of business owners.

Additionally, the topic of the present state of the city of Milwaukee - crime, unemployment and the state of Milwaukee Public Schools, became quite heated at times.

Look for more Roundtables discussions by the Public Policy Committee in the future.

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...we’re open for business!

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Join o

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2018 Membership Committee

Jake Hansen Jacsten Holdings

Charles Fry Robert W. Baird

Mike Poludniak Merrill Lynch

Dan Hansen

Tom Parks Annex Wealth Mgt.

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

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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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THERE’S ROOM AT THE TABLE

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

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“ I almost always come away from an IBAW meeting with useable material that helps me with my business. Many times, a speaker will give me something that applies to ITU AbsorbTech. Other times, it is a conversation over breakfast that gives me value.”

Jim Leef, President & CEO, ITU AbsorbTech

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Rich Meeusen, CEO, Badger Meter.

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