March 2015 ibaw magazine

MARCH 2015 Best Practices

Sales Roundtable

March 9th

“Elevating Your Sales Game”

March 20th Mark Gottlieb Transportation Secretary

“Construction & Transportation Update”

INSIDE THIS ISSUE: GOV. WALKER: WISCONSIN EXPORTS HIT RECORD HIGH IN 2014

KEATING: FCC VOTES TO REGULATE INTERNET - WHAT’S NEXT?

WENDT: 3 SECRETS TO GAINING MORE PROSPECTIVE CUSTOMERS AND SKILLED MANUFACTURING WORKERS - IN ONE SHOT

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 “Free Enterprise Nonsense” Madison Mayor Paul Soglin didn't hold back any punches when sharing his thoughts on Uber, an innovative new company that is disrupting the establishment taxi industry. - Media courtesy of the MacIver News Service.

Executive Director Steve Kohlmann President John Weber Hypneumat Secretary Charles Fry Robert W. Baird & Co., Inc President Elect 2014 Membership / Sponsorship Jim Leef ITU AbsorbTech VP. State & National Programs Jeff Hoffman Boerke

Watch by clicking HERE.

Treasurer Casey Malek Sikich Directors Bart Adams Sikich Ann Barry Hanneman Simandl Law Group S.C Heather Baylor Park Bank Richard Blomquist Blomquist Benefits Lisa Mauer Blackhawk Industrial Tom Boelkow BSI Design, Build, Furnish Craig Coursin MSI General Robert Gross Gross Automation

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

Contributing Photographer: Tim Townsend

Business Education Series FIVE STAR Programing

Friday, March 20th “Construction & Transportation Update” Location: The Wisconsin Club, 900 W. Wisconsin Ave. Time: 7:00 AM - 9:00 AM Cost: $32.00 IBAW Members $42.00 Guests

WisDOT Secretary Mark Gottlieb, P.E.

• High Level Networking • Plated Breakfast • Send Your Team Attire: Business Professional

Constructed in 1963, the Zoo Interchange is now undergoing changes that will make going through the area more efficient, and safer to move traffic through the busiest interchange in Wisconsin.

Mark Gottlieb was appointed by Governor Scott Walker to serve as Secretary of the Wisconsin Department of Transportation (WisDOT) beginning in January 2011.

WisDOT is one of the largest state agencies, with 500 employees and an annual budget of more than $3.5 billion. The department supports all modes of transportation, including state highways, local roads, railroads, public transit systems, airports, harbors and bicycle and pedestrian facilities. The department also serves 50,000 people each day through the Division of Motor Vehicles and includes the Division of State Patrol which enforces laws and aids motorists throughout the state.

Plus...10 Minute Special Guest: Mark Kessenich, President, CEO, WRTP / Big Step Wisconsin Regional Training Partnership / Big Step How do you fill workforce gaps NOW? A workforce intermediary, WRTP/BIG STEP works with the public sector to develop resources, services, processes and programs for their member companies to expand employment and advancement opportunities by upgrading the skills of current employees; and recruiting, training and placing community residents in family-supporting jobs to meet their need for new workers.

Registration now open!

Click here.

LOCATION

THE WISCONSIN CLUB 900 W. WISCONSIN AVE. MILWAUKEE

7:00 AM

REGISTRATION & NETWORKING

7:30 AM

BREAKFAST & PROGRAM

9:00 AM

PROGRAM ENDS

Implosion of a Brand Steve Kohlmann, IBAW Executive Director

Nobody knows better than me how one’s mouth can get you in a trouble. I know what you’re thinking: “Not you, Steve.” To which I reply; “Oh yes, me.”

Often my brain is running at least a full two speeds slower than my mouth. Thoughts in my brain are like an agitated airline passenger charging up the aisle, bumping into seats wanting to talk to the pilot only to be thwarted by an air marshall with a stun gun. Not pretty.

But a more public display of running off at the mouth took place on the nightly news when longtime respected new anchor Brian Williams took some major liberties on his news reporting experiences. I won’t get into the whole background of the story within these pages, we’re all very well aware of the story at this point.

It didn’t take long for the world of Twitter to jump on board the Brian Williams implosion. Thousands of Twitter followers threw high octane jet fuel on the William’s fire as they got busy photoshopping NBC’s top anchor in all sorts of goofy historic situations posting with the hashtag #brianwilliamsmisremembers. A few sample pictures are below.

It’s going to be difficult for Williams to claw his way back from this one. He not only violated the trust of millions who rely on him to deliver the day’s events in a factual manner but he also attempted to put himself in the same classification with war veterans who’s courageous experience can only be understood by those who have been there and done that. This is an experience most of us have no knowledge of and I am unbelievably thankful for those men and women who have served and are serving our nation that keep my ignorance on such experiences as bliss.

So what can we learn from the William’s experience? This public display of a Hindenburg-like brand explosion teaches us how important our brand - whether a personal or company brand - is so important. Lose your reputation (brand) and you’re really in a spot you don’t want to be in. There’s an old saying that goes, “Any advertising is good advertising.” Don’t believe that for a minute. This is the type of advertising that doesn’t do you any good.

Admittedly, Americans have very short term memories when it comes to public figures screwing up. President Clinton cheats on his wife with a White House intern then lied about it not only while addressing the nation (while shaking his finger at us no less) and under oath but still escaped being thrown out of office.

Former Washington D.C. mayor Marion Barry did cocaine with a prostitute (on video) and managed to get reelected. Maybe there’s hope for Brian Williams to make it back into the nightly chair.

It’s going to be an interesting marketing experiment how - and if Williams is somehow going to be able to come back from this. I’m guessing that NBC will keep him but how they try and integrate him back to the public will be interesting to say the least.

Wisconsin Exports Hit Record High In 2014

By Wisconsin Governor Scott Walker

Hello, everyone. We have some great news this week, which coincides with our trade mission to the UK! In 2014, Wisconsin businesses exported $23.43 billion in goods worldwide – an all-time high for our state and a 1.4 percent increase over 2013. In the previous four years, total exports for Wisconsin have jumped by 18.3 percent!

Our state’s agricultural exports rose by 13.6 percent in 2014 to a record $3.7 billion. That’s nearly three times greater than the growth rate for total U.S. agricultural exports in 2014 and marks the fifth straight year that Wisconsin’s numbers have risen.

The export growth in 2014 was propelled by a boost in shipments to Canada and Mexico, Wisconsin’s top two export destinations. While Wisconsin saw significant increases in agricultural exports, we also saw development in other key industries as well, including water-technology-related products, which are up 7.4 percent to $5.03 billion; biotechnology, which increased 6.8 percent to $3.11 billion; and health care, which saw a gain of one percent to $1.89 billion.

Industrial machinery continues to be Wisconsin’s top export product category in 2014 at $6.37 billion, comprising 27 percent of all state exports. The second-largest export product category is medical and scientific instruments, which accounts for nine percent of all state exports at $2.17 billion.

Additional 2014 export highlights include:

•

Wisconsin is ranked 19th in the U.S. in total exports, and 13th in agricultural exports.

•

Our state leads the nation in exports of more than 40 different products, including cranberries, whey, ginseng roots, outboard engines, refrigeration equipment, firefighting vehicles, fire extinguishers, and bicycles.

•

Wisconsin businesses export to 206 different countries.

•

Our exports to European Union countries increased by 8.1 percent in 2014, partially due to increases in exports of automatic data process machines, and tractors, trucks, and other vehicles.

•

Wisconsin saw an 8.6 percent increase in the exports of plastics, which surpassed the $1 billion mark in 2014. The major destination of the state’s plastic exports is Canada, comprising 42 percent.

•

Aircraft and spacecraft exports rose by 32 percent to $404.9 million, with the United Kingdom as the leading destination of products in this category.

We are taking the steps needed to ensure the business climate in Wisconsin continues to improve and to aid Wisconsin businesses in improving their opportunities in the global market. By promoting Wisconsin business and products, we are helping job creators realize that exporting can open new doors to new markets and new customers. The latest numbers are a genuine indication that our efforts are paying off.

This week, to fuel the upward trend of Wisconsin exports, economic development, and job creation, I traveled to London in the United Kingdom to launch a four-day trade mission promoting Wisconsin as a destination for European investors and establishing new relationships as a means of developing a pipeline of business attraction and expansion for our state.

During the trip, we had the opportunity to meet with United Kingdom companies and high-level government officials, as well as tour several factories. It was also a great honor to speak and participate in a discussion at one of the world’s most-esteemed think tanks, Chatham House.

In London, I was joined for this trade mission by Reed Hall, Secretary and CEO of the Wisconsin Economic Development Corporation; Jim Paetsch, Vice President of Corporate Expansion & Attraction for the Milwaukee 7 regional economic development organization; and Dan Ariens, WEDC board member and President and CEO of Ariens Co., a Wisconsin company with existing operations in the UK. Our trade mission trip to the UK included: UK: Meeting with Business Leaders from Financial Times Live and fDi Magazine In the UK, I had the opportunity to meet with high-level executives from United Kingdom companies to promote the Wisconsin success story and make a strong case for why UK businesses should consider investing in Wisconsin.

Officials from WEDC and I highlighted the opportunities that exist in Wisconsin for UK companies, primarily our historic and emerging sectors of strength, including manufacturing, energy, water technology, agriculture, and medical devices.

We were able to connect directly with key decision-makers and make them aware of the opportunities in Wisconsin, as well as our strong business climate, world-class education system, outstanding workforce, and great quality of life.

For many companies in the UK, this is their first exposure to Wisconsin, and this briefing allowed us to network in a way that could pay dividends in the future.

Our most sincere gratitude to fDi Magazine, a publication that caters to international corporate decision-makers and investment professionals, for partnering with the State of Wisconsin and hosting the briefing.

UK: Encouraging Business Investment and Expansion in Wisconsin During the trade mission, I toured several company and factory locations and met with business executives. The companies we met with include Genus plc, a global leader in applying biotechnology to advance the science of animal breeding, and the parent of Genus ABS right here in DeForest, Wisconsin; UK-based Fords Packaging Systems Ltd., the world’s leading supplier of aluminum capping systems to the food and beverage industry; GlaxoSmithKline, one of the world’s largest pharmaceutical companies; and Ariens Co., a Wisconsin-based manufacturer of snow blowers and other outdoor power equipment. We also stopped by Warr’s Harley Davidson in London to see some great Wisconsin products.

WEDC Secretary and CEO Reed Hall and I met with company leaders to thank them for their commitment to Wisconsin and to discuss the possibility of expanding their investment in our state. The face-to-face meetings allow us to promote Wisconsin to key decision makers who will help Wisconsin improve its positions in the global economy.

UK: Breakfast with Alumni of the University of Wisconsin and Marquette As a part of this trade mission, we hosted a networking breakfast on Wednesday for alumni of the University of Wisconsin-Madison, University of Wisconsin-Milwaukee, and Marquette University who are now living in the United Kingdom to encourage and thank them for their role in attracting international investment in Wisconsin.

This networking event is a portion of several components of WEDC’s “You’re Welcome in Wisconsin” initiative, which reaches out to people with ties to Wisconsin who are now living out of state and asks them to contemplate returning to Wisconsin to grow their businesses and/or invest in Wisconsin companies.

UK: Meetings with British Officials During our trade mission, I had the unique opportunity to meet with key government officials to discuss ways to strengthen economic ties between Wisconsin and the United Kingdom. During my visit to Parliament, I met with Prime Minister David Cameron and his Chief of Staff Edward Llewellyn at 10 Downing Street, as well as John Bercow, Speaker of the House of Commons. I was also a guest for the weekly Prime Minister’s Question Time in the chambers of the House of Commons.

Additionally, I had a great discussion with Chancellor of the Exchequer George Osborne, who has a role much like the U.S. Secretary of Treasury and oversees all economic and financial matters in the UK. We met to discuss the business climate and economic conditions of both Wisconsin and the UK and shared ideas on how each is working to continue to improve their respective economies.

Wisconsin has much in common with the United Kingdom, both culturally and economically, and these meetings provided the opportunity to strengthen the already close relationship that exists between our governments. Both sides shared their respective successes and challenges, and we look forward to conversations in the future on how Wisconsin can work with the UK on initiatives that will benefit all of our citizens.

UK: Addressing the UK Policy Institute, Chatham House Forging strong global partnerships is a priority for Wisconsin, and on Wednesday, I discussed the importance of these alliances at Chatham House, an independent policy institute based in London.

International partnerships have the capability of fueling business growth and building prosperous local economies. We live in a global economy, so I was thrilled to discuss how we can work together to develop more free and prosperous nations.

Sincerely,

Governor Scott Walker

Roundtable With Lt. Gov Kleefisch and other Elected Officials IBAW Members were invited to a roundtable discussion with Lt. Gov. Kleefisch and State Senator of the 28th District Mary Lazich and State Representative of the 82nd District, Ken Skowronski in the city of Franklin, at the Polish Community Center recently.

About fifteen business owners discussed concerns on the filling the aging workforce, issues regarding taxes and particular concerns of overreaching policies at the local levels.

Also in attendance was Ginger Kollmansberger, South Central Wisconsin Regional Director for Senator Ron Johnson.

AL !

I C T E N SP VE E

Legislators coming to see you...

IN MILWAUKEE!

Peter Barca

Tod Ohnstad

D - Kenosha

D - Kenosha

Legislative Panel Discussion

Mike Kuglitsch

Dale Kooyenga

R - New Berlin

R - Brookfield

Join the IBAW for a special morning with elected representatives of Wisconsin.

Topics will focus on issues pertaining to business and other issues before the legislature.

Wisconsin Club Ballroom!

Panel moderator: Jeff Hoffman, VP State and National Affairs of IBAW.

April 17th Location: The Wisconsin Club, 900 W. Wisconsin Ave. Time: 7:00 AM - 9:00 AM Cost: $32.00 IBAW Members $42.00 Guests

Register at IBAW.com

3 Secrets to Gaining More Prospective Customers AND Skilled Manufacturing Workers — in One Shot Robert Wendt, Cultivate Communications Amidst the resurgence of Milwaukee manufacturing, successful manufacturers are looking for the best ways to bring in both new customers AND qualified employees. Why not streamline the process and craft your content marketing strategy to achieve both objectives?

Here’s how…

1: Entice Skilled Manufacturing Workers with Great Content Attracting a new generation of skilled workers? You’ll need great content (like helpful FAQs and interesting pics and videos) on your website and social media channels. The good news is all that great content can work to both entice prospects and customers and attract the skilled employees you need to stay ahead of the competition.

For example, that cool video of your factory floor in action can work double-time for your manufacturing enterprise, as it will impress your customers, while also showing skilled workers how great it would be to work at your company. Those photos of corporate events show your customers you’re active in the community and convince prospective employees to apply so they can be part of the fun.

Take, for instance, the official Toyota Twitter account. With over 40K followers, they share a nice mixture of industry news, humor and networking content that appeals to their customers and potential employees alike. Lincoln Electric, global welding equipment manufacturer, uses Twitter to reach more than 19K followers with a similar approach.

2: Create Channel-Specific Compelling CTAs Great content is only part of the battle. You’ve hammered out a great content marketing strategy, filled it with various types of content ready to distribute across your website and social media channels. You’re ready to go, right? Not quite. A great piece of content is nothing without your call-to-action (CTA).

A great CTA entices your website viewers to take the next step and engage with your business in some way. But your CTA is nothing without that lead capture form. For example, a CTA might inspire the viewer to call or email your business, or to download a helpful and robust piece of content. Each CTA should be set up underneath a lead capture form to collect a few bits of prospect information in exchange for that additional content.

Each CTA should be: •

Sized relative to the importance of the call to action. You may have pages with several CTAs, but the important ones should be larger.

•

Placed where they will catch your prospect’s attention. If your website visitor can’t see your CTAs or if they blend in with everything else, you’ll have a harder time getting clicks and capturing that qualified lead information.

•

Placed with plenty of whitespace around it to avoid confusion with any other webpage elements or CTAs.

Your CTAs should each be channel specific: The CTA you use on your email marketing campaigns should be different than the CTAs on your manufacturing website. Yet another CTA should be used when blogging or posting to social media platforms. Use one style of CTAs to attract customers and use another to attract skilled employees. Mix it up a little to see which CTAs are most effective for each channel.

3: Don’t Stop at the Lead Capture—instead, Nurture Just like the CTA is nothing without the lead capture—the lead capture is nothing without lead nurturing. Studies show 35 to 50% of sales go to the vendor who responds first, and you never know how many other manufacturers a potential customer has contacted. According to the Annuitas Group, nurtured leads make 47% larger purchases compared to leads that are not.

Sure, you need the information from the customer before you can convert, but you must act on that information to convert. Create a system that automatically sends lead capture to your sales team so they can close the deal. Similarly, your CTAs that most appeal to skilled workers should funnel directly to your HR department for follow up.

By implementing a great content strategy, compelling CTAs and a clear lead nurturing process, your content marketing can work double-time for your manufacturing enterprise, attracting both prospective customers AND skilled manufacturing workers. Content marketing is an excellent way for today’s modern manufacturers to outshine the competition, so now is a great time to get started.

Want to learn more about how to make a content marketing strategy work for your manufacturing enterprise? Download a FREE guide: Manufacturer’s Guide to Attracting More Customers. The guide includes: •

5 key marketing strategies used by leading manufacturers

• •

20+ effective, proven tips for generating more qualified leads Step-by-step instructions to attract and retain more repeat customers

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Your Tagline is a Commitment You Make to Customers Scott Seroka, Seroka Branding

Your tagline is the boldest statement you can make about your brand. It’s that leading message you want customers to know about what they can expect when doing business with you, condensed into a short phrase and bolted onto your logo.

And you’ll need to deliver on that expectation. No excuses.

The only way you’ll be able to consistently deliver on customer expectations is by creating a culture that encourages, recognizes and rewards performance.

Culture isn’t something you can copy and paste from one organization onto another. Many CEOs may look at Apple or Google and say, I want to have that kind of culture! The fact is, replicating the culture of another company simply isn’t possible. Culture is what happens when a group of highly skilled and unique minds are brought together to collaborate and achieve specific visions and outcomes. For anyone looking to be like Apple or Google, consider that the hiring, onboarding, training and culture of the two companies have many more differences than commonalities, yet they are both very successful. In other words, attempting to copy any culture onto your company may be the worst strategic move you can make. You would be much better off looking for people who have the skills, background and personality needed to help you achieve the vision of your company.

Take the case of a manufacturer with the tagline, Born to lead. Built to last. If you were a prospective customer, what sort of expectations would you have of their products? You may think of things like innovation, maximum uptime and durability.

To deliver on these expectations, this manufacturer would need to recruit and hire people who think like leaders and strive for excellence in everything they do. Likewise, management would need to have a genuine desire to foster a culture of innovation, continuous improvement, and operational excellence. Now compare to a competing company owning the tagline Leading through innovation. Different message, different vision and different focus. Also, different culture.

So, what is your tagline? How can you make sure your people understand what it means, how to deliver on it, and live it with enthusiasm? As you’re thinking, keep in mind that brand is one hundred percent internal, and it is only as credible and strong as your most disengaged, disconnected and unmotivated employee. Your tagline and business strategy is meaningless if you don’t have the culture to drive it.

Consider the case of the major 5-star hotel chain that was on the national news after hidden cameras revealed its staff cutting corners when cleaning guest rooms. Bed sheets were “fluffed” instead of being changed between guest stays, and the same towel used to clean the bathroom floor was used to clean the counter top. The reaction of the CEO was swift, stating that the health and safety of guests is, and always was a top priority. And what about the quick-service franchise that was caught serving customers expired food even though its tagline is, “freshest ingredients always.”?

The CEO of the hotel chain may not have directed his head of housekeeping to cut corners to save money. It’s entirely possible that the staff was either improperly trained, or simply too lazy to properly clean rooms. If so, the hotel chain has a leadership and culture issue. In the second example, the restaurateur could also be given the benefit of the doubt in that his or her employees weren’t paying attention to inventory, or it could have simply been some other sort of human carelessness. It happens, and no brand is one hundred percent immune.

However, it is certainly possible to minimize, and in some cases, even eliminate mistakes and lapses in judgment through better hiring practices, training and fostering a culture of practicing the highest of standards.

Think again about your tagline and what sort of expectations your customers may have. And now think about what your employees must believe and how they must think and act to deliver on those expectations.

SALES: Best Practices ROUNDTABLE

Monday, March 9th 7:15 AM - 9:00 AM Michael Theisen leads the discussion...

“Elevating Your Sales Game” Even if you're seasoned in sales, learn what other professionals are doing and some new techniques and skills you might be missing.

This roundtable is open to anyone in a business development role at an IBAW member company who would like to share their real world challenges and most successful strategies for growing business.

This Roundtable is meant to serve as a confidential means to learn from your peers in other industries and to help others learn from your experience – good and bad.

Cost: Free - A benefit of IBAW membership.

Location: (Registration is required) CTaccess Conference Room 740 Pilgrim Parkway, Suite L3 Registration is open!

Elm Grove

Click here!

Coffee provided by CTaccess, bakery provided by IBAW.

Madison Legislative Update Rob Hutton, 13th Assembly District

Right To Work The much anticipated Right to Work legislation, Senate Bill 44, is now at the forefront of debate here in the legislature. Right to Work legislation gives workers the freedom to choose whether to belong to a labor union and pay dues by ensuring that no employee can be refused to be hired or be terminated for choosing not to join a union or pay dues. While unions are still allowed under Right to Work legislation, employees will have the freedom to choose whether to join a union.

Right to Work is also about economic benefit. Senate Bill 44 will help spur economic development and growth, and will make Wisconsin more attractive to out-of-state businesses and more competitive, not only in the Midwest, but across the nation. Right to Work states consistently outperform union states in employment growth and wage growth, and welfare utilization is lower in Right to Work states. By allowing for workplace freedom, Right to Work will help attract more jobs and employers to Wisconsin.

This week, the week of February 23, the State Senate debated and passed Right to Work legislation both in committee and in a full session of the Senate. Now that the Senate has passed Senate Bill 44, the Assembly will take up the bill. The Assembly is planning on moving the bill through committee and an Assembly floor session next week, the week of March 2. Once the bill has passed both houses of the Legislature, it will go to the Governor’s desk, and Governor Walker has stated that he will sign the Right to Work bill into law.

A recent poll found that the majority of Wisconsin residents support Right to Work legislation. With the passage of Senate Bill 44, Wisconsin will join twenty-four other Right to Work states, including Michigan, Iowa, and Indiana. Other states across the country, including Ohio and Missouri, have also signaled that they plan to introduce Right to Work legislation in their respective states. The time has come for Wisconsin to enact this pro-worker and pro-business legislation.

State Budget Update This month, the Governor released his 2015-17 biennial state budget proposal. His proposal, introduced as Assembly Bill 21 and Senate Bill 21, is now in the Legislature’s Joint Committee on Finance (JFC). JFC will be holding a series of public hearings across the state over the next couple of months. The first set of public hearings will be state agency briefings, in which each state agency will be allowed to come in and weigh in on the budget, describing any effects the budget will have on the agency.

The next series of public hearings will be held across the state where members of the public can weigh in and give their support or opposition to any items in the budget. Once JFC completes these public hearings, it will begin a series of executive sessions, in which it will begin voting on the budget, item by item. Once the committee finishes its votes on the budget, JFC’s version of the budget will likely become a substitute amendment to the Governor’s budget bill. That budget bill as amended will go to both houses of the Legislature.

Once both houses vote on and pass the same amended bill, the bill will then go to the Governor, who will likely make a few changes (vetoes) of his own before signing the bill into law. Once the bill is signed by the Governor, it becomes the official state budget for 2015-17.

There are many provisions in the budget, including funding for the Department of Veterans Affairs, the Department of Health Services, the Department of Public Instruction, and more. These agencies provide services for our veterans, our children, and those who need medical services. Additionally, there are initiatives to fund economic development loans, tax credits, and job programs as we continue to create a job-creating environment in Wisconsin. The budget also provides funding to help domestic abuse victims, child sex-trafficking victims, and provides much needed funding for SeniorCare and Medicaid.

The Governor’s budget also includes changes to University of Wisconsin (UW) System funding and K-12 education funding. Some concerns have been raised about proposed cuts to these areas. As the state budget moves through the legislative process, I will definitely keep education at the forefront of the debate as we look at various funding options for the UW System and K-12 public education.

Wisconsin's Economic Development Agency The Wisconsin Economic Development Corporation (WEDC) is the state’s main economic development agency, and it provides programs, tax credits, and many other resources for businesses, entrepreneurs, and local governments.

Tax incentives include training grants, manufacture and agriculture credits, and economic development tax credits. WEDC even states that agriculture and manufacturing businesses can have their tax burdens almost completely eliminated through various tax incentives. Loans also are available for a variety of needs, including private infrastructure improvements, land acquisition, equipment purchases, training costs, and building construction.

In addition, WEDC provides information to companies and investors on investment opportunities in Wisconsin. This economic development agency even helps local officials develop strategies to help spur economic development in their communities. Further, WEDC can even help out-of-state and in-state businesses find the right location for their company.

I am honored to have recently been selected to serve on the WEDC Board of Directors. My experience as a business owner gives me first-hand knowledge of the key challenges employers are facing, and I look forward to helping WEDC increase its value to Wisconsin's business community. It will be a privilege working with my fellow board members to keep our state’s economy moving forward.

Further, Governor Walker’s proposed 2015-16 state budget proposal includes a provision to combine WEDC and WHEDA into one Forward Wisconsin Development Authority. I look forward to working with my fellow legislators and board members on this proposal as the biennial budget moves through the Legislature.

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FCC Votes to Regulate the Internet What’s Next?

Ray Keating, Chief Economist, SBE Council, Washington D.C.

The Federal Communications Commission (FCC) has voted to regulate the Internet – both wired and wireless broadband networks – as a utility, absurdly and dangerously trying to apply regulations initially enacted in 1934 for a long-gone Ma Bell telephone monopoly to the dynamic, ever-changing 21st century Internet.

The implications of such a massive government overreach are ominous for investors, network providers, content providers and all entrepreneurs.

As noted by SBE Council President & CEO Karen Kerrigan in a statement following the 3-2 vote on Chairman Tom Wheeler’s regulatory plan: “Treating the Internet as an old-style public utility – with the complex rules, fees, taxes and burdensome red tape that go along with such a regulatory framework – will vastly change the Internet and the pace of new technologies moving forward.”

It’s worth considering points made by tech entrepreneur, investor, Dallas Mavericks owner, and “Shark Tank” star Mark Cuban regarding the ills of net neutrality regulation. He spoke on CNBC on February 26, and to Glenn Beck on February 25. Calling net neutrality a creature of “Silicon Valley group think,” Cuban said: “I don’t think anyone’s thinking this all the way through.”

Nonetheless, three Democrat commissioners voted (with the two Republican commissioners opposed) to move away from a set of light regulatory touch rules that have allowed the Internet to flourish in ways unimaginable not along ago, and instead adopt a highly-regulated model – at the urging, by the way, of President Obama – operated by politicians and their appointees who do not possess the knowledge or incentives to undertake such a monumental task.

The innovation and investment that have made the Internet such a powerful tool for small businesses, for example, as both suppliers and consumers, now face real constraints due to the uncertainty and costs related to government dictating network business models, from managing to pricing network services.

So, what’s next? It will be about Congress, the courts, and the FCC. Again, that’s obviously bad news for networks, content providers and consumers. Despite FCC Chairman Wheeler’s confidence that the new regulations will create “certainty,” they will do anything but that.

As reported on Nextgov.com, for example, “[T]hree congressional committees have announced plans to investigate whether the White House exerted improper influence over FCC Chairman Tom Wheeler and the agency as a whole as it considered different net neutrality options… [A] small, dedicated group of Republican lawmakers like Sen. John Thune and Reps. Greg Walden and Fred Upton … have made clear they intend to keep working on net neutrality legislation as an alternative to the FCC rules—a priority that is likely to get wrapped up in an ongoing push to rewrite the Telecommunications Act.” Indeed, it must be noted that Congress in no way, shape or form ever intended for the FCC to be regulating the Internet.

Clearly, the FCC has usurped the power of Congress. So, congressional action aimed at fixing this overreach would be most welcome. But, of course, getting sound Internet policies past a presidential veto, given Mr. Obama’s support for net neutrality regulation, would be a monumental task.

USNews.com noted that “Republicans, including House Energy and Commerce Committee Chairman Fred Upton, RMich., have criticized the rules as an overreach of regulation that could discourage investment in the telecom business.

The vote in the FCC ‘is just the beginning’ and ‘means an inevitable return to the courts for net neutrality rules, which will lead to more years of uncertainty for consumers and providers,’ he said Wednesday during a hearing of the House Subcommittee on Communications and Technology… AT&T has indicated that it will file such a lawsuit if the rules pass, as Verizon Communications did successfully to overturn the previous rules last year.”

The Hill.com summed up, “Major phone and Internet companies have long made clear their intentions to file suit, which could drag the issue through the courts for years. ‘To put it briefly, litigation with FCC appeals is a pretty long, drawn-out process,’ National Cable and Telecommunications Association head Michael Powell said earlier this week. ‘I would predict that it’s at least two — and up to five — years before the rules are fully and finally settled.’ In the meantime, congressional Republicans in both chambers are pushing legislation to replace the rules. Proposals to enact some net neutrality protections reflect a major pivot for some GOP lawmakers who have long objected to any net neutrality rules, though those plans aim to scale back the FCC’s authority.”

FCC Commissioner Ajit Pai, who so valiantly fought to try to force the FCC to disclose the plan so the public could view the contents before commission action, hopes that the vote would be viewed as “an aberration” in the future, eventually tossed aside by the courts, Congress, or a future FCC. Indeed, let’s hope that turns out to the case, but that not only is far from certain, it also must be noted that, in the meantime, resources will be wasted battling this grossly misguided, costly overreach by a government agency. _______ Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council.

Keating’s latest book published by SBE Council, Unleashing Small Business Through IP: Protecting Intellectual Property, Driving Entrepreneurship, is available free on SBE Council’s website here.

BUSINESS DAY IN MADISON March 4, 2015 Monona Terrace Community & Convention Center, Madison

Attend the premier event that brings business and politics together!

John Stossel

Gov. Scott Walker

KT McFarland

Ed Goeas

Host of “Stossel” on Fox Business Network

(invited)

FOX News’ National Security Analyst and Former Nixon, Ford, Reagan Staffer

The Tarrance Group

Register online at www.businessdayinmadison.com • Questions? Contact WMC at 608.258.3400

A program presented in partnership with the WMC Foundation, Inc. BUSINESS DAY IN MADISON • 501 E. Washington Ave., Madison, WI, 53703 • 608.258.3400 • www.businessdayinmadison.com •

@BizDayinMadison

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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2015 Membership Committee Lyndsay Zwerlein PNC Bank Jim Leef ITU Absorbtech

Charles Fry Robert W. Baird

Lori Highby Keystone Click

Scott Seroka Seroka Branding

Steve Kohlmann IBAW

Steve Van Lieshout K & S Technologies 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 information.

The digital magazine is sent out to over 650 contacts statewide and the magazine is parked on the web where, on average, it gets over 1100 views.

Legislative Update: It seems that all key legislative leaders are now on board to correct this issue. It was approved by the legislature’s Joint Finance Committee last week. The Senate and Assembly will be in session in March and voting on final passage for several bills, one of which is this tax bill with the MAC correction. It looks like the legislative timetable will have the bill passed near the middle of the March, before going to the Governor.

Thus, a best guess now is that the bill would be enacted into law somewhere in the latter half of March, 2014.

MAC Attack Options: For any of our individual taxpayers taking advantage of the MAC, this may present some filings logistics. Here are the possibilities:

1. Best case scenario - in some cases the taxpayer’s share of the MAC for 2013 will be used and not result in a Wisconsin Minimum Tax. A taxpayer in this situation could go ahead and claim the MAC and file their 2013 Wisconsin individual return. There would be no need to wait for the legislation to pass.

Consider writing an article on a timely business related topic to your particular field of business. This is an outstanding opportunity for you and your company to gain exposure and increase your brand awareness to a statewide audience. There is no cost to submitting an article.

2. Next, a taxpayer has generated a MAC for 2013, but it will trigger a Wisconsin Minimum Tax. The taxpayer in this case could wait until the law is changed (and then wait a little for the WDR to update its computer processing systems) and then file their Wisconsin tax return and claim the MAC, and not incur the Wisconsin Minimum Tax. This could present a tight timeline for the April 15 deadline, and you may need to file for an extension.

3. Similar case as #2, but this taxpayer could file their Wisconsin individual return with the MAC, but also incur and pay a Wisconsin Minimum Tax for 2013. Then, once the corrective law is enacted go back and file an amended 2013 Wisconsin tax return to obtain the proper tax benefit of the MAC. You would not need extend, but you would need to amend.

We’ll keep you posted as this legislation moves forward.

If you have any questions, please contact Jim Brandenburg or Brian Kelley at Sikich, LLP in Brookfield (262)754-9400.

Contact Steve Kohlmann for details.

Articles submitted by our members & sponsors.

Welcome New IBAW Members!

Meeting Recaps 2014 Wisconsin Manufacturing Knowledge Summit

Power Test

On June 20, 2014 the IBAW partnered with the Tool, Die & Machining Association of Wisconsin (TDMAW) to offer Wisconsin manufacturers and their suppliers a unique look at trends within the industry and to also report on some of the challenges the industry faces in the next 5 years.

Power Test, Inc. is an industry leader in the design, manufacture and implementation of dynamometers and control systems.

Special thanks to the event sponsor, First Business Bank for their efforts in helping organize this event.

For more than 37 years, Power Test has provided specialized test equipment to manufacturers, rebuilding facilities and distributors globally. Our products can be found in use at these facilities in nearly 100 countries on six continents.

Chris Halaska

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Our headquarters and manufacturing operations are located in Sussex, WI with sales representatives worldwide. Our unparalleled customer service is well known throughout the industry.

Power Test employs a dedicated staff of talented machinists, fabricators, electronic technicians, assemblers, designers, engineers, software developers, and administrative and customer service personnel.

Our exceptional product life and excellent customer service is well known throughout the industry and has made us one of the industryleading dynamometer manufacturers. Our dedication to the customer and to the advances in powertrain component testing keep us there.

Power Test N60 W22700 Silver Spring Drive Sussex, WI 53089 Phone: 262-252-4301

4 Advanced Waste Services Advanced Waste Services is an environmental services company that provides wastewater recycling and other waste and risk elimination services to manufacturers in all industries. Each day, AWS helps hundreds of businesses, both large and small, meet their community and environmental obligations. Annually, we collect, treat and recycle more than 50 million gallons of contaminated wastewater into clean, reusable water and other valuable resources like fuel, steam and electricity.

AWS is constantly helping our clients manage, reinvent and improve their sustainability successes. For example, we recently partnered with Forest County Advanced Waste Services Potawatomi Community to help Wisconsin food and beverage manufacturers convert 1126 South 76th Street food waste into clean, green renewable energy.

Suite N408B

West Allis, WI 53214 Founded in 1993, AWS employs 55 people in the Milwaukee area and a total of 150

people companywide in 5 states.

414-847-7100

Photo Key 1: A full house in the main ballroom of the Wisconsin Club as IBAW & TDMAW members prepare to hear about the state of manufacturing and the challenges the industry faces in the workforce.

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2: David Vetta of First Business Bank delivers opening remarks and highlights the importance of a strong relationship between banking and manufacturing working together for success.

3: New IBAW President, John Weber of Hypneumat addresses the change in IBAW Bylaws and calls for voting in new board officers.

4: Kent Lorenz of Acieta gives the main presentation on “Manufacturing Matters” pointing out the trends on manufacturing now and what to expect in the future.

5: Outgoing IBAW President, Steve Van Lieshout receives his award for his efforts as 2013 - 2014.

6 Photos courtesy of Tim Townsend.

6: IBAW Executive Director, Steve Kohlmann (Left) presents David Drumel with an award for his service on the IBAW board.

Spotlight on new members

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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Boerke Co. Hansen Reynolds Dickinson Crueger BSI - Design, Build, Furnish Letterhead Press Consolidated Construction MSI General Contractors BMO Harris Powertest Judson Commercial Real Estate Reinhart, Boerner, Van Deuren, S.C. Hypneumat Mfg Cultivate Communications Staff Electric Sponsor support helps IBAW continue to bring insightful programming to small business owners.

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The Independent Business Association of Wisconsin is a not-for-profit entity filed with the IRS under 501(c)(6) of the Internal Revenue Code.

As a not-for-profit association, the members of The Independent Business Association, Inc. are allowed to deduct a percentage of dues that are not used for lobbying purposes. For the year 2013 based on the total income of the association and the lobbying expenses as reported on the Wisconsin State Ethics Board Lobbying reports for 2011 the percent of dues that were used for lobbing purposes is 10%. Therefore, the percent of dues that would be tax deductible is 90%.

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