July 2015 IBAW Business Magazine

JULY 2015 July 13th

July 17th

Best Practices

Evan Zeppos “Critical Communication During a Business Crisis”

Sales Roundtable

PLUS... 10 MINUTES WITH

Judge Rebecca Bradley Wisconsin Court of Appeals District 1

Inside This Issue:

HUTTON: LEGISLATIVE UPDATE

KEATING: THE REAL DEAL ON SMALL BUSINESS AND SPECTRUM AUCTIONS

SEROKA: TOP 7 BRAND MYTHS

Networking matters

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

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

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

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

IBAW MEDIA LINK Gov. Walker Radio Address “Continuing Our Work for Wisconsin”

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

Listen by clicking here.

Treasurer Casey Malek Sikich Directors Bart Adams Sikich

IBAW Business Behind the Scenes Recap LakeView Technical Academy

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

To watch video, click here.

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

Robert Gross Gross Automation Contributing Photographer: Tim Townsend

Business Education Series FIVE STAR Programing

July 17th Meeting Evan Zeppos, Laughlin Constable

“Critical Communication During a Business Crisis” Even the very best companies and organization can find themselves staring the unexpected in the face. Product recalls. Industrial accidents.

Fires. Lawsuits. Tornadoes. Environmental trouble. Neighbor disputes. Layoffs. Labor issues. Plant closures. Product tampering. Explosions. Workplace violence. Protecting a company's brand during a crisis always has been a challenge, but the age of the smart phone has significantly changed the rules of the road.

From social media and mainstream media to talk radio and bloggers, this presentation will offer business owners and their marketing / communication team practical advice and suggestions on what they need to know about what ultimately is a leadership challenge.

KEY TAKEAWAYS OF THIS PRESENTATION: • How to manage the ever changing communications landscape.

• Strategies on dealing with negative social media.

• Leadership & Communication team execution.

• How to ride the communication train rather then being under it.

Send your marketing team!

Learn other strategies, tips and tactics for weathering the storm in this new world of instant news and communication.

LOCATION

THE WISCONSIN CLUB 900 W. WISCONSIN AVE. MILWAUKEE

7:00 AM

REGISTRATION & NETWORKING

7:30 AM

BREAKFAST & PROGRAM

9:00 AM

PROGRAM ENDS

Cost: $32.00 IBAW Members

$42.00 Guests

Registration now open! Click here.

The Office of Budget Inspection Steve Kohlmann, IBAW Executive Director There’s been a lot of talk about the state budget lately. Listening to the talk coming out of Madison you would think Wisconsin was on the verge of financial collapse, barley able to make ends meet if departments don’t get their way. But there’s no need to worry about Wisconsin running out of money.

The state of Wisconsin is swimming in billions and billions of dollars.

The UW system has been crying poor as well but if you take a look at the salaries it’s hard to feel sorry for a professor making $412,113. per year. Of course, not every professor makes $400,000 a year. There’s a professor who is in the Zoology Department, he only makes $242,000.00 per year. Or the guy in the department of L&S/LaFollet Publ AF/LAF PA (whatever that is) who makes $172,000.00. If your going to make $172,000.00 at the expense of the taxpayers, you should have to coherently tell people what your department is and what it does. And my guess is a “year” in the educational field isn’t quite the same length as a “year” in the private sector. Oh, the hardship of having a Wisconsin summer off.

Sure, it’s easy to pick on the UW system but there are examples of waste that our friends at the MacIver Institute uncovered which are just the tip of the iceberg. I’m sure there’s plenty of examples like this in just about every department.

I would like to suggest to our legislators in Madison a new department called “The Department of Budget Inspection.” Every year, each department head would have to undergo a lengthy and in depth audit of their budget by a penny pinching miser (as shown at left).

Mr. Ebenezer Pennymizer would make Scrooge look like one of the Kardashians.

“No need to turn up on the heat in January, you can type with mittens on.” “You need a staple?

Pish posh, just tear the sheets together at the top.”

When Governor Walker gave his inauguration address, he put an emphasis on frugality in

Mr. Ebenezer Pennymizer, Office of Budget Inspection

government. While the Governor has accomplished much, I personally would like to see a greater emphasis on the penny pinching aspect of his speech. I know Governor Walker is a bit of a tightwad himself as he’s always bragging about his brown bag lunch of a ham and cheese sandwich. Additionally, he utilizes his Kohl’s coupons and points to snag deals on shirts and

sweaters. Being a tightwad isn’t a bad thing, I’m a tightwad myself. Washing out zip lock bags to use over and over again until they fall apart or shopping at Goodwill where I snagged a practically new piece of rolling luggage for $10. By the way, if you need a nice piece of luggage I have a nice one for sale for $50 - it has wheels!

In a state where the general public is coupon crazy and most Wisconsinites won’t buy anything unless it’s on sale or in the discount rack, we seem to have totally ignored this fact on our own government. I think a lot of it has to do with the fact that taxpayers simply don’t pay attention to the amount taken out of their pay check. If you actually had to write a check every quarter (such as the self employed do) you would see torches and pitch forks at the steps of the capitol.

It’s past time to cut the waste and start penny pinching at the department level. If any legislator would like to hire me to do this, I’d be glad to do it for 1% of whatever I can save the state. I’d only be able to work for a year though, since I would be able to retire as a multi millionaire.

IBAW Supports Amendment to Wisconsin Family Leave Law Ann Barry Hanneman, Simandl Law Group, S.C., IBAW Board Member, Legislative Committee The Board of the Independent Business Association of Wisconsin (IBAW) has voted to support an amendment to the Wisconsin Family Medical Leave Law (WFMLA) that has been advanced by Wisconsin Manufacturers & Commerce for inclusion in the budget. The intent of the WFMLA amendment is to minimize administrative burdens employers face when complying with both the state WFMLA and federal FMLA provisions. Currently, employers that must comply with both laws have to keep track of both leaves used for each employee, applying the different provisions of each law as an employee is entitled to receive the most generous provisions of each law.

The proposed amendment to the WFMLA has been referred to as a modernization of the WFMLA. This amendment is not a full “federalization” of the Wisconsin law to fully mirror the federal version; however, it eases the administrative burden that compliance with both laws presents in most cases. This law does not expand employee benefits provided under the WFMLA and there is little economic impact upon businesses with regard to this proposed amendment. Although this amendment will still require that exceptions be recognized under WFMLA, it will ease administrative compliance in most cases.

As always, we urge you to contact your legislators with respect to your position on this WFMLA amendment.

IBAW Legislative Update Charles Fry, Robert W. Baird, IBAW Board Member, Legislative Committee

The Legislative Committee of the Independent Business Association of Wisconsin is committed to providing informed, insightful legislative updates to our membership. Our member driven, grass roots advocacy for legislation that is consistent with advancing small, independent business remains an integral pillar of the IBAW.

State Issue: Tax Reform

Reducing the tax burden on business and families in Wisconsin remains a top priority for the current administration. A favorable tax climate provides a tailwind for business investment and creation, particularly among small and medium sized closely held companies. The Tax Foundation recently ranked Wisconsin 43rd in its annual state-by-state competitiveness rankings. Notable progress has been made in this area, with more relief on the way in the proposed 2015-2017 budget. In the Governor’s proposal, an additional $211 million in property tax relief will be enjoyed by Wisconsin taxpayers. Unfortunately, there appears to be no similar progress for income tax relief. It is notable, that Illinois recently saw its income tax rate drop to 3.75%. Most Wisconsin taxpayers will find themselves paying 6.27%. Wisconsin must continue on a path of aggressive tax reform to ensure the most competitive possible standing in the region.

State Issue: DOT Funding

Wisconsin is facing both a structural deficit in the transportation fund, and a widely agreed upon need for continued massive investments in the states roads and highways. This has been one of the most challenging aspects of the budget facing the legislature. The Governor’s Budget included a proposal of $1.3 Billion in new bonding over the biennium for new and ongoing transportation projects. This proposal only further kicks the can down the road as the state continues to charge its credit card. In an attempt to put forth a plan that reduces this bonding, two leading ideas have emerged. The first centers on the idea of delaying projects including the Zoo Interchange, which is one of Wisconsin’s busiest interchanges and most in need of reconstruction. The second looks to drive revenue increases by raising the gas tax or registration fees, or some combination of both. As the debate continues over the transportation budgets, a third hybrid approach has been advanced incorporating reduced projects and increased revenue.

The IBAW Legislative Team

Charles Fry

Jeff Hoffman

Mike Kuhn

Wisconsin’s only Certified Brand Consulting firm.

G r e g Ly o n s

Ann Barry Hanneman

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Leaders Drive Employee Retention Jeff Kortes, Employee Retention Specialist 75 % of people say the worst thing about their job is their boss. That is a stinging indictment of leadership today. I have always contended that most people do not retire because they want to.

They retire because they get tired of all the “nonsense” they have to go through at work. Most of that is usually a result of how their boss treats them. As an employee retention speaker, I tell leaders the most important person in retaining people is them.

The boss and his/her actions are EVERYTHING in employee retention. A company that has great leadership will have great employee retention, happy, satisfied, and engaged employees. And, let’s face it; the vast majority of bosses are not Directors, VP’s and Presidents. They are supervisors, team leaders, department managers, plant managers etc. The power and success of an organization is driven by these people in the middle more than anyone….even if the VP’s and Presidents think it’s them.

When working as an employee retention trainer, I tell my classes if you are a supervising people at any level, you need to take a good close look in the mirror at yourself. If you’re senior leadership, you need to take a look at the leaders in your organization as well as yourself. Leaders need to be treating their people properly to sustain an organization into the next generation because to 90% of your people……YOU AS THEIR IMMEDIATE LEADER ARE THE COMPANY TO THE PEOPLE THAT REPORT TO YOU! Show me an organization that has lousy employee retention and I will show you an organization that has lousy first-line and middle level leadership!

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

This is open to anyone at an IBAW member company who would like to share their real world challenges and most successful strategies for growing business. This Roundtable is meant to serve as a confidential means to learn from your peers in other industries and to help others learn from your experience – good and bad.

Click here to register for the July 13th roundtable.

Legislative Update Representative Rob Hutton (R-Brookfield), Assembly District 13 June is Alzheimer’s Awareness Month. In honor of this important issue, I would like to highlight Wisconsin’s new Silver Alert program. You may have seen Silver Alerts on a highway sign as you are driving down the road. This life-saving program has helped many elderly here in our state.

Silver Alerts notify the public when an at-risk senior goes missing. Similar to Amber Alert, Silver Alerts go out by email, text message, or fax through the Wisconsin Crime Alert Network to notify the public that an adult with dementia or Alzheimer’s is missing. The program, which is less than a year old, has already been successful. Since last August, there have been 35 Silver Alerts, with almost all the individuals located and returned to their families, including some within our own community. There are heroic stories of citizens reading the alert, seeing the missing person, notifying the police, and the missing person being reunited with family.

According to the Alzheimer’s & Dementia Alliance of Wisconsin, over 115,000 people with dementia live in our state, and about 60% will wander at some point as their condition worsens. The average age of a missing person in Wisconsin’s Silver Alert system is 77 years old.

The Wisconsin Department of Justice (DOJ) suggests that families with a loved one who suffers from a cognitive impairment such as dementia or Alzheimer’s should be prepared in case they one day need to use the Silver Alert system. DOJ states that having a photo stored digitally, knowing the person’s medical issues, and having a license plate number and unique identifying features of their vehicle can save time and help law enforcement during a crisis.

Silver Alerts are issued when the following criteria are met: -The missing person is age 60 or older; -The missing person is believed to have Alzheimer’s dementia, or another permanent cognitive impairment that poses a threat to the individual’s health and safety; -There is reasonable belief that the missing person’s disappearance is due to the individual’s impaired cognitive condition; -The Silver Alert request is made within 72 hours of the individual’s disappearance; -There is sufficient information available to disseminate to the public that could help in locating the missing person.

To receive Silver Alerts for free by email, text, or fax, you may subscribe online at www.wisconsincrimealert.gov. In addition, the Wisconsin Department of Justice has a Silver Alert facebook page that sends out Silver Alerts and updates as they come in.

Speed Limit is now 70 MPH. Governor Walker recently signed into law an increase in Wisconsin’s speed limit. Our state’s speed limit is now, in some places, 70 mph. The Milwaukee Journal Sentinel map above shows the highway portions which now have the higher speed limit.

Prior to 1973, Wisconsin’s speed limit on rural highways was 70 mph. In 1974, the federal government set a maximum speed limit of 55 mph, mainly due to nationwide fuel shortages, and states were forced to reduce their speed limits. Federal regulations were lifted in 1995. As you can see in the map below, Wisconsin is the only state in the Midwest with a 65 mph maximum speed limit. Raising the speed limit brings us into line with our neighboring states and with much of the nation.

According to the authors of the 70 mph legislation, the reason this has been done is actually to make speeds more consistent and to make our roads safer. Throughout the nation, traffic safety engineers throughout the country state that the safest place to set the speed limit is the speed at which 85% of the people are driving at or below. According to reports, Illinois, Iowa, and Utah all saw a decline in traffic fatalities after raising their speed limits to 70 mph.

Setting speed limits at the proper level can significantly reduce aggressive driving behaviors. In Michigan, changes to roadways where aggressive driving had occurred reduced the reported incidents of road rage. When the speed limit was raised from 55 mph to 70 mph along a section of Michigan Interstate, incidents of aggressive driving dropped to nearly zero.

Previously, this same section had accounted for 40% of all aggressive driving incidents.

DOT has informed my office that the 70 mph speed limit is now in effect, and that all the posted 70 mph signs are up. If you are wondering which portions of highways are now 70 mph, just follow the posted speed limit signs. The speed limit on each road is whatever the posted sign shows is the speed limit.

As the summer tourism season swings into full effect, and many people are using our roads for road trips, getaways, and vacations, I hope you have a safe and wonderful summer.

State Budget Update The Governor’s 2015-17 biennial state budget proposal is currently before the Legislature’s Joint Committee on Finance (JFC). The Committee has been going through the Governor’s budget proposal, item by item, and is voting on each and every item in the budget. However, JFC is still deliberating on some bigger budget issues and has not met in the past few weeks. Legislators are trying to come together on three main issues: transportation, the proposed Bucks arena, and prevailing wage.

One change that JFC did enact is that of teacher licensure. Last session, the bipartisan Assembly Speaker’s Task Force on Rural Schools named recommendations that could help school districts around the state. One issue in particular that superintendents spoke of was the difficulties in hiring teachers for certain subjects. The Task Force also heard about the wide gap in courses and electives that are available to students in rural districts, compared to those in more urban areas.

In response, JFC enacted a number of recommendations made by the Task Force. Those recommendations include increased funds for school transportation costs, additional funds for digital learning, and teacher license flexibility, specifically an alternative teacher license option.

Specifically, the alternative teacher license option allows a local school board and superintendent to identify a course need in the classroom and subsequently identify an experienced individual in the community to teach the course. The person could then gain an alternative license/permit from the state’s Department of Public Instruction (DPI). The person must be proficient in their subject area and have relevant experience.

This alternative license is completely optional. No school district is required to make use of this new alternative if it does not wish to. Additionally, the license/permit granted by DPI would be valid only for the district where the individual has been deemed qualified. The license would not be able to be transferred to any other district.

JFC is working to clarify the language in a number of ways, including that the alternative teacher license/permit must have high school diploma, GED, or an equivalent. DPI will conduct standard criminal/background checks. In addition, the Committee will likely add language to allow for recruitment of candidates with licenses from other states. Finally, any person holding an alternative teacher license cannot be a full-time employee of the district.

In small districts with a lower enrollment, there may only be a few students interested in a woodworking class or an accounting course. The alternative teacher license is a way for a local school district to offer those opportunities, while also saving money. As local school districts best understand the needs of their students and classrooms, the alternative teacher license is a way to allow skilled members of the community to come in and teach our students those same skills.

YOU ARE INVITED TO…

“LIGHT UP THE NIGHT” At CJM’s New Lannon Office Space & Retail Showroom

THURSDAY, JULY 9TH 5:00 - 7:30 P.M. Please RSVP to info@cjmlighting.com by July 2nd.

For information please call 262.518.7757 or visit our website at www.CJMlighting.com.

www.cjmlighting.com

Join CJM Lighting & Electrical for an exciting night of cross-chamber networking. The night is spotlighted by a cross-chamber ribbon cutting event, as well as the opportunity to connect with local professionals and business leaders from each organization.

Thursday, July 9th 5:00 p.m. - Ribbon Cutting 5:30 - 7:30 p.m. - Open House and Networking Enjoy refreshments, light appetizers and feel free to take a tour of our new office space and retail showroom! We are located at 20316 W. Main Street in Lannon, just north of Good Hope Rd. and east of County Road Y. We welcome you to come connect, share ideas and leave ENERGIZED. We hope you can join us!

WORKFORCE STRATEGIES: Attraction. Retention. Connection.

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

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

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

What employees want from employers is changing.

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

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

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

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

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

September 18,2015 Location: The Wisconsin Club Ballroom Time: 7:00 am - 9:00 am COST: $32.00 Who Should Attend CEOs Human Resource Managers Shop Floor Management Directors of: Operations, Engineering, Production Key Organizations In Attendance Get introduced to organizations that will help you with your specific workforce right now and in the future.

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

Top Seven Brand Myths Scott Seroka, Seroka Brand Development

If you keep doing that with your face, it will stay that way! Your mother may have told you this myth when you were making faces growing up. There are thousands of popular myths floating around, some of which are so believable that many people have shaped their lives and behaviors around them. And, because some of these myths are so logical and convincing, they are hard to identify and many people never think to question them. You can thank your mother for introducing you to your first one.

In this blog post, I want to dispel seven brand myths that may be affecting how you view the science of brand, branding and brand development.

Myth #1: Customers control your brand This is only true if you turn your back and let them. A brand is a company’s most important and valuable asset, and it must be properly managed to maintain critical metrics such as: • Relevance

• • • • • •

Uniqueness Competitiveness Credibility Delivery Sales Loyalty

In my opinion, companies should have brand managers first, and marketing managers second. I believe this because marketing will only be as effective as the quality of the brand it is promoting. Marketing a fuzzy or weak brand has proven to do more harm than good.

Myth #2: Brand is just a fancy word for marketing The fact is, the two are completely different disciplines. Brand is defined as a set of unique distinctions a company owns that make a noteworthy difference in the lives of its customers. Marketing is the tactical application of promoting the brand through a variety of communications vehicles.

Myth #3: Brand development is a one-time initiative This is like saying learning only happens when we are in school. Your brand should drive everything your company does, influence every decision employees make, define your culture and provide answers to two of the most burning questions that keep business owners up at night: “Why should top-performing employees in my industry want to work for me?” and, “Why should customers want to do business with me versus my competitors?” Brand development isn’t an action – it is a business lifestyle.

Myth #4: The ROI on building a strong brand is difficult to measure Consider this: if the ROI delusion is preventing you from working on building a stronger brand for your company, it will be easy (and much more painful) to measure competing brands that win the customers you were pursuing and hiring the people you were courting. There’s a reason why Google is the dominant technology company, receiving more resumes in one month than Harvard receives applications in one year. It’s not the pay. It’s not the benefits. It’s something much, much more. Brand can be measured in more than 25 ways. To learn more, contact us.

Myth #5: A brand is a logo No. A logo is a visual representation of what the brand stands for. Think of it this way – when you see the logos of your five favorite brands, what comes to mind for each? When you see the logos of five brands you would never buy, what comes to mind for each? The things that come to mind are what those brands stand for, at least from your experiences, biases, perceptions and understanding. Do you see why focusing on your brand is one of the best business decisions you can make?

Myth #6: Relationships trump the brand Relationships are your brand. And it’s not just the relationships you have with your customers – it’s also the relationships you and your employees have with each other. The quality of the relationships your company has with people internally (employees) and externally (customers, strategic business partners, the community, etc.) is a direct reflection on the quality of your brand.

Myth #7: A brand is what a company says it is It’s not what you say, it’s what you can prove and consistently deliver. Here’s an excellent example. I recently received an email promotion from a large retail chain that sells a variety of appliances and electronics, promoting their expertise in cameras and photography by branding themselves as The Camera Authority. Intrigued, I visited one of their locations as I was interested in upgrading my camera and wanted to know what they had to offer and what recommendations they would make based on my needs. Unfortunately, the salesperson in their camera department couldn’t offer much more than what was on the informational cards next to each camera, and some of the insights he had into the technical aspects were incorrect. I thanked him for his time and walked away. Thinking back, I wonder how many other customers came to this salesperson looking for advice and walked away with a similar experience. And, I can only assume he is not the only untrained salesperson in their camera department. Question: What do you think this does to the retailers’ brand credibility?

Any brand setting an expectation that it cannot deliver is setting itself up for failure, and a lot of disappointed customers.

You may have noticed that the common denominator in a brand is people. It's your employees who need to understand what your brand is and how to deliver on your brand promise. Without that definition and clarity, your brand will only be as strong as the most uninformed and disengaged person on your team. The good news is, your employees do care, and they do want to deliver. When you have your team on your side, your brand will have unlimited potential.

The Real Deal on Small Business and Spectrum Auctions Ray Keating, Chief Economist, SBE Council, Washington D.C.

Talk heated up of late regarding so-called set-asides for “small business” when it comes to the Federal Communications Commission’s (FCC’s) upcoming “incentive auction” for broadcast spectrum.

Unfortunately, this has been grossly misleading, as such set-asides have nothing to do with small business. In fact, these subsidies would go to very large businesses, and would work against the interests of small business.

Small businesses, of course, have benefited enormously from the advancements made in the realm of telecommunications, including in the wireless arena, in recent times, such as gaining access to new services, achieving greater productivity and flexibility, creating new products, and tapping into new customers. And as long as private innovation and investment remain uninhibited by misguided and costly government intrusions, the benefits and returns for small businesses promise to continue to expand. And by the way, that is the case for small businesses as consumers of telecommunications services, and as providers within the telecommunication industry, given that 82.6 percent of employer firms in the telecommunication industry have fewer than 20 employees.

To be clear, therefore, small business, and the rest of the economy, benefit when spectrum is allocated in the most efficient manner, that is, not through politically-driven set-asides, but instead via competitive auctions whereby spectrum goes to those who value it most, and will maximize its use, with consumers benefiting, as well as the taxpayers reaping rewards.

The latest battle over spectrum had to do with the FCC’s 600 MHz spectrum auction next year, in which 30 MHz in each market would be set aside for smaller carriers. That is, AT&T and Verizon would be excluded from bidding on those licenses. T-Mobile, Sprint and DISH Network wanted to further expand such subsidies, specifically, to 40 MHz. By limiting competition taxpayers would be shortchanged, and consumers would come up short as well with access to mobile broadband limited. Let’s keep in mind that spectrum auctions are needed to meet growing spectrum demand in the marketplace.

Fortunately, the FCC announced on June 25 that the level of set-asides will not be increased.

This debate was instructive in terms of how “small business” labels and interests are mislabeled and abused. Consider the following: First, T-Mobile, Sprint and DISH are in no way “small businesses.” The market cap for T-Mobile US stands at $31.6 billion, and the company has 45,000 employees. DISH has a market cap of $32.9 billion, and 19,000 workers. And Sprint possesses a $17.5 billion market cap and 39,000 employees. Oh yes, and T-Mobile US and Sprint are owned by the large international corporations, specifically, Deutsche Telekom and Softbank, respectively. And Deustche Telekom’s market cap is $75 billion, with 228,000 employees, and Softbank comes in with a market cap of $70.3 billion, with 70,000 employees.

One might wonder why the FCC is concerned about offering taxpayer subsidies to such massive companies that also happen to be headquartered outside the U.S. – Softbank in Japan and Deutsche Telekom in Germany?

Second, when government gets involved in doling out subsidies, efforts to game the system generally follow. That was the case, as noted in a recent SBE Council Cybercolumn, when DISH manipulated a spectrum auction earlier this year to gain discounts meant for small businesses.

Third, leaders of businesses seeking taxpayer subsides often tell a tale of woes or stories to politicians and regulators, while informing shareholders and other market players that things are just great. As reported by Jeff Mazella on the Center for Individual Freedom’s blog, T-Mobile and Sprint are talking out of both sides of their mouths: “On a recent call with Wall Street analysts, T-Mobile CEO John Legere bragged that T-Mobile has ‘a great spectrum portfolio. That’s allowed us to be smart and opportunistic,’ and claimed that the company was ‘off to an incredible start to 2015 with the best customer growth in the industry fueled by disruptive Un-carrier moves and the network that continues to be America’s fastest.’ Similarly, Sprint CEO Marcelo Claure asserted that he ‘couldn’t be more confident that now [Sprint has] the right plan to be successful’ and acknowledged Sprint’s ‘rich spectrum portfolio.’

Legere and Claure’s comments to Wall Street make their plea to the FCC – that they cannot compete with AT&T and Verizon in the upcoming auction or in the industry long-term – completely disingenuous. Furthermore, Sprint chose to sit out of the recent AWS-3 auction, and it was DISH, not AT&T or Verizon, that outbid T-Mobile most on licenses it sought but didn’t win. Indeed, it was DISH’s shady dealings during the AWS-3 auction that demonstrate the danger of rules that favor certain players over others in the marketplace.”

Or, if you like video, consider what T-Mobile CFO said in February about the company’s great advancements in coverage, speed and competitiveness in the U.S. His talk begins at minute 28. That hardly lines up with the company’s CEO crying to the FCC for subsidies.

Finally, it is critical to understand that open, competitive spectrum auctions do not require any kind of set-asides, especially for large multinationals who are more than able to win such auctions. Seeking set-asides courtesy of the government is not a necessity for such large firms as T-Mobile, Sprint or DISH. Rather, this is a business strategy to gain advantages against competitors via taxpayer subsidies.

Spectrum auctions are meant to free up spectrum for use in the marketplace in order to meet ever-growing spectrum demand and to allow innovation to continue. That process benefits small businesses as both consumers and suppliers in the realm of telecommunications. In contrast, providing subsidies to large multinationals who are simply seeking handouts is in no way positive for small business. Quite the contrary, small businesses turn out to be losers when government handouts driven by special-interest politics overrule free enterprise driven by working to serve consumers better.

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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nline o n i o J

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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.

IBAW Around Town IBAW Executive Director, Steve Kohlmann, gives John Weber, an award for his hard work as outgoing president of the IBAW board.

John Weber is president and owner of Hypneumat, in Franklin.

Steve Kohlmann and Board member, Bart Adams were invited to the swearing in ceremony of Justice Rebecca Bradley as Wisconsin Circuit Appeals Judge of District 1.

IBAW Executive Director, Steve Kohlmann catches up with Quad/Graphics President, Joel Quadracci during a recent Business Journal Power Breakfast.

Steve’s late father, Joe Kohlmann, worked with Joel’s late father, Harry Quadracci, back at W.A. Krueger in the 1960’s and 1970’s before Quad/Graphics was formed.

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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