May 2015 ibaw magazine

MAY 2015 May 15th

May 11th

Best Practices

Sales Roundtable

Peter Feigin

PAT SEROKA:

President, Milwaukee Bucks

“The Power of Building a Strong Brand”

“The Business of Sports”

THE EXPERTS WEIGH IN: Our BIGGEST ISSUE EVER!

HANING: WHAT’S YOUR INDUSTRIAL REAL ESTATE WORTH?

OLLENBURG: DO “HAPPY” WORKERS HAVE A REASON TO EXCEL?

KOHLMANN:

STARK:

CONFESSIONS OF A GATEKEEPER

IS THE FINANCIAL WELLNESS OF THE EMPLOYEES ADDING COST TO THE COMPANY?

HANNEMAN: PROPOSED LEGISLATION TO SIGNIFICANTLY CHANGE ENFORCEABILITY OF NONCOMPETE AGREEMENTS IN WI

SEROKA: 7 DOS AND DON’TS OF BRAND MANAGEMENT

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 KT McFarland on National Security Hear exclusive interviews with KT McFarland, John Stossel, Charlie Sykes and Ed Goeas as well as some of the best insights from 2015's leaders and experts.

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

MAY 15th “The BUSINESS of Sports” The marketing of a major sports team is a highly complex issue involving many facets.

Winning seasons make things easier but sports fans have many things vying for their time, attention and hard earned dollars...just like business.

- How do you compete for this and how does it translate it to the business world?

- Where do you leverage your marketing, sales and team for future success?

- What lessons can be learned from the arena issue?

Join us for a morning of insightful discussions.

Send your Marketing & Sales Team!

Feigin comes to the Bucks with a depth of experience in both in the NBA and the corporate world.

As the chief marketing and revenue officer of Deluxe Entertainment Services Group, he managed global business units and handled branding across the international entertainment company.

Peter Feigin President, Milwaukee Bucks Location: The Wisconsin Club, 900 W. Wisconsin Ave. Time: 7:00 AM - 9:00 AM Cost: $32.00 IBAW Members! $42.00 Guests

Prior to working at Deluxe, Feigin was president and COO of Marquis Jet Partners and helped lead its acquisition by NetJets. From 1998 to 2004, he worked for the New York Knicks and rose to become vice president of marketing – increasing profits, season subscriptions and suite revenue during his tenure. Additionally, Feigin has served as a senior advisor to the Milwaukee Bucks since the ownership change, helping reorganize and refocus its business operations.

He holds a bachelor’s degree from Franklin and Marshall College and completed the University of Chicago Booth School of Business’ Financial Executive Program.

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

The “Ah, HA!” Factor Steve Kohlmann, IBAW Executive Director

I call them “Ah, HA!” moments.

They are points in time during my travels and advocation on behalf of IBAW when I take notice certain good things taking place to help validate time and effort. It confirms to me things are going in the right direction for the IBAW. You may notice these things in your own business; an employee mentions how much he enjoys working at your firm, a prospective client that you’ve been chasing for years finally calls you after a marketing campaign or maybe you take notice that your plant is at full capacity. Validation.

I major Ah HA! moment took place a few years ago when I ran into Senator Ron Johnson at an event in Washington D.C..

The Senator recognized the IBAW logo on my name tag and said, “Oh yeah, I spoke at your group not too long ago!” Yes. Yes, you did.

I had another one like that just last month when a reporter for The Business Journal contacted me for my opinion on whether Gov. Walker’s travels outside the state meant that small business owners were cooling on their love for the governor. My response, by the way was that small business was still backing the governor.

But the Ah, HA! moment was that a reporter was calling me, and this means that IBAW is getting noticed by the press and that’s a good thing. Ah, HA! moments don’t have to be major events like winning the lottery or something of that magnitude. They can be, but most likely are, small, seemingly insignificant in nature.

Click HERE to watch video.

And so it was with the latest Ah, HA! moment.

IBAW member Scott Seroka, of Seroka Brand Development had just sent me the final editing he did on the IBAW promotional video and a set of goosebumps traveled down my arm. Goosebumps were the Ah,HA! moment. The reason for the goosebumps was because not only was the video high quality and very well done, but it consisted of several IBAW members describing openly and honestly how they felt about the IBAW and what our organization was all about and it was validation for a lot of hard work the past two years. And it shows how far the IBAW has come. Good stuff.

I hope you’ll take a few minutes to watch the video and pass the link along to someone who you might think would be interested in the IBAW. Our organization has a lot to offer small business owners - everything from our monthly programs and this business magazine. I know small business owners are busy, IBAW offers the opportunity to send any of their team members to any of our events. That’s a really nice perk of membership.

We are an organization that’s on the move and we are growing. Tell you business associates about IBAW and they might have their own Ah,HA! moment.

I want to thank Seroka Brand Management for all their hard work in helping us put together this video. Scott and his team are very easy to work with and if you’ve been pondering your marketing, branding or perhaps making a video, I would suggest you give them a call and have a conversation.

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.

Sporting Clays Shooting SPORT CLAY SHOOTING ur t yo or a e r T es s! loye ociate p m e ss ss a e n i bus

$45 Includ .00 es lun ch!

IBAW SOCIAL EVENT

Thursday, May 14th 12:00 pm - 3:30 pm Join the IBAW for an afternoon of Sporting Clays Shooting at the Highlands Sportsman’s Club in Cascade, WI. • Novices welcome.

• Lunch & instruction included.

• Fellowship and cash bar afterwards.

• You do NOT need to be an IBAW member to attended!

For more information & registration here or contact IBAW Board Member Steve Van Lieshout.

April Meeting Recap: Legislative Panel Bi-Partisan Panel Keeps Members Engaged The April 17th breakfast meeting of the IBAW consisted of a bi-partisan panel made up of: Rep. Tod Ohnstad (D-Kenosha) Rep. Peter Barca (D-Kenosha) Rep. Chris Kapenga (R-Waukesha) Rep. Mike Kuglitsch (R-Waukesha).

Topics included tax reform, workforce issues and we also touched on the regulation and policy issues. In addition we discussed the Milwaukee Bucks arena situation. IBAW’s Jeff Hoffman moderated the panel.

A Full House in the Ballroom of the Wisconsin Club!

Small business owners filled the ballroom at this unique event. Only IBAW can facilitate an event where both sides of the aisle get together for business.

Left to Right Rep. Peter Barca (D-Kenosha) Rep. Chris Kapenga (R-Waukesha) Steve Kohlmann, IBAW Executive Director Rep. Tod Ohnstad (D-Kenosha)

Confessions of a Gatekeeper !

!

The View from the other side of The Gate

Sue Kohlmann, Kohlmann Management Group

“How do I get to the decision maker?” “When will you be making a decision?” “What’s your time frame for implementation?” “How can I get you in a new car today?”

Salespeople still uses these lines. I cringe just writing them. If you’re in sales, do you have a system, a process, or your own winning sales lines?

I’ve been very fortunate in my career to wear many different hats. I’ve had some great mentors and learned from some great people. I’ve worked with and for a diverse group of individuals, owners, presidents, VP’s and managers. My role as their employee or as their executive assistant was to contribute to their success and the success of the firm. As their Gatekeeper, it was my responsibility to keep distractions away, and those distractions included salespeople. After all, they’re busy running the company!

Let me share with you the view from the other side of the gate and why it might just be in your best interest to make friends with the Gatekeeper. Because the Gatekeeper is not only tasked with keeping people out - but letting the right people in.

First let me explain one of those internal administrative processes. Whether it is the receptionist answering incoming calls or the office of the executive assistant, each company or CEO has a preference for the calls they take or the people they see.

That receptionist may have been instructed to handle all new callers and pass on only messages or limit you to the voicemail system. It’s not you! It’s just their process and you’ll have to wait for them to return your call. Be sure to have a concise message ready – something persuasive enough to warrant the call back.

We’ll start at the top – really – the CEO. Sales people calling on a prospective client always want to talk to the CEO, the President, whoever is in charge and can make the decision. Generally, if you are calling a large firm, you don’t need to speak to the CEO. You think you do because you think that’s where the decision is going to be made. Sometimes a Purchasing Agent, Office Manager or Maintenance Supervisor makes this decision. It is part of their budget and their responsibility. The CEO is not involved at this level. You believe your product is so spectacular the CEO must want to talk to you. But no, you get lumped into the same category as the copier salesman and the carpet cleaning contractors.

Let me list some examples of what doesn’t work. Don’t pretend to know the company’s owner. A good Gatekeeper already knows the owner’s family; all of their current customers, vendors, and sub-contractors; their banker, broker, accountant, and attorney; the family doctor and dentist; their friends; the people they golf with or vacation with; the boards they sit on and all of the teams their kids play on. Pretending to be a buddy doesn’t work.

And please don’t call on the dead. If you’re cold calling from a list, make sure the list is current, certainly not more than a year old. You just look foolish when you ask for John and have to be told John retired years ago or passed away. Or, John has always been known as Jack. Do your research before you call.

Sometimes the Gatekeeper knows there isn’t going to be a change in supplier because the company is doing business with a family friend or relative or neighbor. It doesn’t matter how much better your product or service is, they will never go with you. This has nothing to do with you. You will either have to find a different way to get into this company or just move on.

It’s just the wrong time. If the Gatekeeper tells you now is not the right time, offer to follow up in a few weeks or months.

Be ready to meet when it is convenient for the client, not just convenient for you. Or you might be a resource for a future purchase but they can’t talk about it or it’s not yet a scheduled project. If the prospective client is in the information gathering stage, you could be their best friend right now. Then, when they are ready to buy, they’ll remember how helpful you were at the beginning.

But what works? Remember when I said a good Gatekeeper will let the right people in? Networking without looking like you’re networking is a great way to learn about people and their company. At networking events, people want to talk about themselves. Listen! Then exchange business cards. When your prospective client gets back to their office, they give all those business cards to their Gatekeeper to add to their contact lists. You made the cut because he or she remembers how nice you were (just because you listened). Now a few days later you call to follow up and the Gatekeeper recognizes your name and puts your call right through.

You can find out a lot about people, not just their company, by listening to them and observing how they portray themselves, how they showcase their company, how they refer to their employees and others. Do you agree with them?

Do you think alike? Are they truly engaged? You think to yourself “this guy gets it”. That’s the kind of person I want to do business with.

What else works? Try to network with mid-level employees. Talk to everybody at a networking event. Sometimes you can get some very useful information from those mid-level employees. Some employees divulge way too much information about their company without even realizing it. I know, I’ve seen this happen. A few drinks, someone tries to outdo the other guy – BAM - you have more information than you ever thought you could get, without ever cold calling the company. And the big-talkers don’t even know it!

What about negative-networking? Have you ever tried to extract yourself from this situation? I’ve watched this unfold and it is so uncomfortable. I’ll hear someone repeating information that should not be made public. When I’m networking with people and they seem to be looking for a new opportunity and bad-mouthing their current employer, I’ll know this is a company I may not want to do business with. I not only wonder about that employee but I wonder what type of culture this company has that one of their employees is negatively networking. This is inside information that will lead you to NOT call on a company because it’s just a minefield. You might learn that you want to keep moving.

Sometimes it’s not the decision maker you have to sell. Sometimes it’s the Gatekeeper who will put out the RFP, meet with vendors, gather all of the information and make the presentation to the CEO. That is the person you need to get in front of.

That is the person who will sway the decision to buy or not to buy. That’s where you want to invest your time. Ask what other information they may need, ask about the time frame, ask if the price is in the ballpark. Don’t ask who really makes the decision and how you can get in front of that person. Make sure you respect the client’s process.

Here’s one more. As a new business owner, I’m now on the sales side. I’ve decided I will always take the high road, be honest with my clients, and do the right thing. You should too! There is enough business out there for all of us. Sit down and listen to your clients to determine if you can help them – not if you can sell them. Let them know what value you bring to their company. Steer them to other professionals if that’s what they need. Make it about them, not about you.

Decide to do your best, because good isn’t good enough.

At Kohlmann Management Group, Sue Kohlmann works with small business, micro-business and individuals to help manage their office processes and procedures, manage their bookkeeping needs and helps individuals manage those executive tasks which may fall outside their core scope of business.

Proposed Legislation to Significantly Change Enforceability of Non-Compete Agreements in Wisconsin Ann Barry Hanneman, Simandl Law Office On March 15, 2015, Senate Bill 69 was introduced by Senator Paul Farrow (R-Pewaukee) to amend the current law governing covenants not to compete, those agreements that prohibit or restrict competition from an employee or agent for a specific time during or after the employment or agent relationship. The current law, WIS. STAT. § 103.465, provides that employers can restrict the ability of a former employee to compete after the separation of employment, so long as the terms of the agreement are reasonable and necessary for the protection of that employer’s business interests. For most businesses that routinely require employees in key positions to sign such agreements, court enforcement of these agreements has been challenging.

As proposed, Senate Bill 69 amends the law to be more “pro-business” making it easier to enforce a non-compete agreement resulting in an enhanced ability to restrict former employees. In practical context, non-compete agreement enforcement disputes often come down to two companies (the former employer and the new employer) engaged in litigation over the hiring of an employee with a non-compete. Consequently, the business community can be divided on the advantages of having stricter laws governing non-compete agreements in Wisconsin.

The discussion below highlights aspects of the proposed law and sets forth the pros and cons of the proposed law. The Independent Business Association of Wisconsin encourages its members to reach out to congressional representatives to share individual opinions about proposed legislation so that the business perspective may be taken into account on important issues affecting the ability to prosper in Wisconsin.

Highlighted Provisions of Senate Bill 69 Continued employment deemed adequate consideration.

Senate Bill 69 defines the type of adequate consideration that can support a non-compete. In Wisconsin, it had not yet been decided whether continued employment constitutes valid consideration for a non-compete, although this issue is currently pending before the Wisconsin Supreme Court. However, if Senate Bill 69 becomes law, it would require enforcement of noncompete agreements based on the sole consideration of continued employment as long as specific requirements are met.

Blue-Penciling will be permitted.

Under current law, if one provision of a non-compete agreement is determined to be invalid, the entire agreement is not enforceable unless the remainder of the agreement can be read without reference to the invalid provision. Thus, agreements under scrutiny risk potential unenforceability if one provision is overly broad. However, under Senate Bill 69, the court would be able to “blue-pencil” provisions, allowing the court to revise the overly broad and unlawful provision without discarding the whole agreement. This ability will surely impact the incentive to settle such disputes.

Legitimate Business Interests of Employer Defined.

Under current law, the employer bears the burden to establish that restrictions imposed protect legitimate business interests and that the restraints are reasonably necessary. Senate Bill 69 defines those legitimate business interests as follows: trade secrets or any other valuable and confidential information that does not qualify as a trade secret; substantial relationships with specific existing or prospective customers; client or customer goodwill associated with a geographical location; unique or extraordinary or specialized training provided by the business. Courts must consider these factors when determining whether the restraint or restriction is legal.

Reasonable Time Constraints Clearly Defined.

Senate Bill 69 creates a presumption that a restriction is reasonable if it lasts six months or less when applied to a former employee. However, if the restrictions are beyond two years, the restrictions would be deemed unreasonable unless circumstances can be shown to justify the longer duration.

Courts Must Favor Enforcement and are Limited in Relying on Public Policy When Construing Restrictions.

Under current law, courts favor the mobility of an employee. Under Senate Bill 69, courts must construe the provisions of the non-compete in favor of providing reasonable protection of the legitimate business interests in favor of the employer seeking enforcement of the agreement. Further, Senate Bill 69 provides that courts cannot refuse to otherwise enforce the agreement on public policy grounds, unless the court can articulate that the public policy substantially outweighs the legitimate business reasons of the employer seeking enforcement of the agreement.

Bonding and Attorney Fees to Prevailing Party.

Senate Bill 69 allows the court to award costs and attorneys’ fees to the prevailing party. Senate Bill 69 also provides that a court may not require a bond from the enforcing party, but may order the party who is enjoined to pay for any damages that may be sustained as a result of the injunctive relief sufficient to protect the business interests. If the terms of the noncompete provide for an attorneys’ fees award, the court must order it. However, the court will not have the authority to enforce the provision limiting the court’s power to award attorneys’ fees. Therefore, the court will not be able to enforce a provision awarding the fees if the employer has included a provision that provides the award of attorneys’ fees in situations other than when the employer prevails.

The Pros and Cons of Senate Bill 69 Advantages of Senate Bill 69.

For those employers who routinely seek enforcement of non-compete agreements, Senate Bill 69 provides the needed clarity and assurance that comes from knowing that courts will grant restraining orders and enforce the restrictions if reasonable as outlined in the law. This is viewed as a comfort to those employers who routinely require key employees to sign noncompetes. If Senate Bill 69 became law, certainty will be provided to employers who offer continued employment as a condition to signing the agreement so they know the agreement won’t be considered unenforceable due to invalid consideration – a grey area under the current law. In addition, the creation of the reasonable presumption and assurance that the courts will find in favor of enforcement is useful, as generally courts have been unwilling to do so except under the most compelling cases. Because of these assurances, it is likely this law will promote the use of non-competes by businesses.

Due to the anticipated expanded use, more actions are expected to be filed for enforcement due to the removal of some barriers preventing enforcement.

Disadvantages of Senate Bill 69.

For small businesses and those businesses in specific industries seeking to hire qualified individuals with current noncompetes, Senate Bill 69 may not be viewed as favorable on the whole. Senate Bill 69 may deter qualified employees from seeking new positions in small companies or start-up businesses because of a non-compete. Particularly, this may hurt small business when seeking to hire qualified individuals from big businesses with the resources to engage in lengthy and costly litigation to enforce a non-compete. Further, there are some business owners that believe imposing more restrictions will impede the overall ability to grow business by attracting qualified employees, particularly in industries dominated by large corporations. Some business owners believe that more enforceable restrictions placed on employees will discourage entrepreneurs and other new businesses from locating or expanding in Wisconsin. Consequently, if the new law fosters increased litigation in an already competitive market, some believe it will not be good for the business climate in Wisconsin in the long run.

As stated above, Senate Bill 69 appears to be a positive pro-business piece of legislation; however, small and large businesses may differ as to its value. Those small businesses in industries heavily laden with non-compete agreements may not consider Senate Bill 69 and its companion, Assembly Bill 91, as favorable. Depending upon your business experience, the Independent Business Association of Wisconsin encourages you to discuss your perspective with your representatives so that the voice of independent businesses can be heard.

Do “Happy” Workers Have a Reason to Excel?

Jessica Ollenburg, CEO, Human Resource Services, Inc.

When happy workers become complacent, work suffers. Simultaneously, demotivated workers are a substantial threat to business viability. A blueprint of empowerment exists.

Not long ago, many C-Suite leaders displayed skepticism when advised that ‘happy workers are productive workers.” To a limited extent, this skepticism served them well.

Per definition, motivation is a reason for behavior. The most widely accepted longstanding theories, such as Maslow and ERG, force us to question if “happy” is in fact the absence of motivation. If “happy” equates to Maslow’s self-actualization stage, why would happy workers be motivated to excel? Furthermore, is “happy” an effective measurement and business criterion?

Decades of studies have validated the pragmatic human capital approach to talent management, yet certain extremists are still peddling a “puppies and sunshine” approach to business. While “happy” workers are not necessarily a meaningful target, and are certainly not a lawful target, let’s explore a more prudent target.

Is “Happy” a Meaningful Criteria?

No astute business leader will ignore today’s five to seven-figure risk of incorporating terms like “happy” and “attitude” into performance criteria. Mood disorders are specifically protected by the EEOC, especially via the Americans with Disabilities Act and its subsequent amendments. Therefore, evaluating happiness can be discriminatory per both statutory and case law. All performance appraisal toolsets that previously carried this language are no longer safe to deploy and require recrafting. With expert guidance, updated terminology equally protective of workplace outcomes is available.

Highbrow thinkers often characterize “happy” in the same realm of “utopia,” where “happy” exists as a non-sustainable target rather than a constant state of being. That being true, optimum productivity exists in the individual who can achieve fleeting happiness in the workplace and finds that work excellence is the path to attainment. That worker, in the proper performance management system, then repeatedly pursues the fleeting sense of “happy” through positive work behaviors, well-aligned with the organization’s goals. This assumes the worker is at socio-economic level beyond basic safety and security needs. An employee whose food and shelter are threatened may throw “happy” out the window quickly for extra money or job security.

Today’s expert business leader recognizes that motivation cannot happen without hope and incentive. Demotivation occurs when employees are not properly rewarded for positive performance. An employee who exceeds expectations may not repeat the excellence if behavioral reinforcement is absent. Rewards, however, must be commensurate with the performance.

Both extrinsic and intrinsic rewards collaborate together in a well-aligned system, refraining from impinging upon the other’s efficacy. A bonus for only adequate performance, for example, strips intrinsic motivation and creates a derailing reward system. A bonus for no performance, as today’s federal government often promotes, most certainly strips motivation and threatens productivity.

A Relaxed Mind is a Productive Mind.

More meaningful than the elusive “happy” is cognitive ability. Productivity and creative problem solving are increased when negative noise is averted. The noise of fear, anxiety and negative emotion shut down the capabilities of most, while a few might benefit from a brief adrenaline rush through sympathetic nervous system response before crashing. Where a team member believes he or she can succeed and shall receive betterment as a result, and where the negative noise is quiet, the team member is exponentially more likely to demonstrate positive work behavior.

Quality of work life deliverables which facilitate problem solving are frequently deployed by companies who depend upon invention and creativity. Work campuses and work days designed to unlock mental energy flourish. Wellness is a powerful human asset which translates into positive corporate output.

And the Answer Is… The discussion of “happy” workers is not only an irritant to many business pragmatists but also lacks legal risk management and, quite frankly, lacks tangible meaning. The real discussion is about workplace productivity as defined by motivation, environment and leadership. Again, motivation is a reason, and complacency will not do. Failure to deliver proper incentive will also not do. We advocate and deliver lifelong learning for leaders, accompanied by proper crafting and delivery of performance management systems. New leaders do not instinctively know how to lead and require solid formal training, often in a kinesthetic learning environment. In any talent-intensive organization, getting the right people doing the right things is the heartbeat of success. Keeping talent management at C-level authority is critical.

Jessica Ollenburg, HRS CEO As experts in Organizational Development, Employment Law and HR, HRS empowers business owners and C-suite leaders with fiscally savvy performance management solutions, custom to each unique employer. Headquartered in Brookfield WI, HRS offers locations in Washington DC and Scottsdale AZ plus national satellites.

For more information visit AskHRS.com, call 866.HRS.9030 or email IBAW@AskHRS.com Article produced for IBAW release. Copyright ©2015 by Human Resource Services, Inc.

MACHINING & MAINTENANCE SERVICES

2015

FOR ALL OF YOUR PLANT FLOOR NEEDS MACHINING & MANUFACTURING . MACHINERY REPAIR & REBUILDING . MACHINE TOOL REPAIR .

MAINTENANCE SERVICES . PRECISION TOOLING .

PREVENTATIVE MAINTENANCE . AND MUCH MORE...

AUTHORIZED CNC EXPERTS:

System Integrator

Solution Partner

(414) 362-7300 • www.BuschPrecision.com

Welcome New IBAW Members!

Waukesha Metal Products Waukesha® Metal Products is an international full service provider of metal forming services including: custom metal stampings, sheet metal fabrications, and in-house precision tooling. With two locations in the greater Milwaukee area of southeastern Wisconsin, a newly acquired facility in San Luis Potosí, Mexico and over 40 years of manufacturing experience, Waukesha Metal Products is a stable force delivering the best-value parts and assemblies in the industry.

Jeff Clark Waukesha Metal Products N53 W24635 S. Corporate Circle Sussex, WI 53089 262-820-9000

Busch Precision, Inc. Busch can not only serve your complete machining needs, their highly skilled technicians also have the diagnostic experience and expertise to repair, maintain, and rebuild a wide array of manufacturing equipment - on site or off. Busch can assist with scheduled plant maintenance, emergency repairs, portable machining and/or balancing, preventative maintenance, and complete rebuilding of industrial machinery.

Busch also provides a wide range of machining services, including turning, boring, milling, drilling, surface grinding, planing, slotting and keyseating. Additional services can include balancing, vibratory stress relieving, welding and assembly. At our 140,000-square-foot facility, projects range in size from the palm of your hand up to 180" diameter - and up to 56,000 lbs.

Finally, Busch manufactures a complete line of precision tooling equipment for accurate positioning of your manufactured items during inspection and machining operations.

Mike Mallwitz Busch Precision, Inc. 8200 N. Faulkner Road Milwaukee, WI 53224 414-362-7300

O’Neil, Cannon, Hollman, DeJong & Laing S.C. O’Neil, Cannon, Hollman, DeJong & Laing S.C. focuses on meeting the many needs of businesses and their owners. Their experienced attorneys work with businesses and their owners at all stages of the business life cycle, helping them start, grow, and transition their businesses from one generation to the next. They also assist business owners with their personal legal needs including tax and estate planning, family law, and litigation—including personal injury litigation. Their firm is divided into six practice groups, each focusing on providing their clients with the most effective legal representation possible.

Their teams regularly collaborate to ensure that the clients’ needs are met with exceptional legal service.

Greg Lyons O’Neil, Cannon, Hollman, DeJong & Laing S.C. 111 E. Wisconsin Ave. Suite 1400 Milwaukee, WI 53202 414-276-5000

Wisconsin Policy Research Institute The Wisconsin Policy Research Institute Inc., established in 1987, is a nonpartisan, not-for-profit Institute working to engage and energize Wisconsinites and others in discussions and timely action on key public policy issues critical to the State’s future, its growth and prosperity. The Institute’s research and public education activities are directed to identify and promote public policies in Wisconsin which are fair, accountable and cost effective.

Through original research and analysis and through public opinion polling, the Institute’s work will focus on such issues as state and local government tax policy and spending and related program accountability, consequences and effectiveness.

It will also focus on health care policy and service delivery; education; transportation and economic development; welfare and social services; and other issues currently or likely to significantly impact the quality of life and future of the State.

The Institute is guided by a belief that competitive free markets, limited government, private initiative, and personal responsibility are essential to our democratic way of life.

Eric Searing Wisconsin Policy Research Institute 633 W. Wisconsin Ave. Suite 330 Milwaukee, WI 53203 414-225-9940

Black Diamond Group, Inc. Freshly paved asphalt makes a business look better, but it's what's underneath the surface that makes the asphalt last longer and require less maintenance.

As a commercial paving contractor, Black Diamond Group's goals when it comes to your asphalt paving job are: Make it look good and make it last. That's why our approach to commercial asphalt paving and parking lot repair starts below the surface where we work to ensure a long-lasting job that enhances the appearance of your building.

Since 1959, Black Diamond Group has been paving the way to beautiful parking lots for shopping malls, libraries, banks and other commercial business.

Deb Teglia Black Diamond Group, Inc. 6925 S. 6th Street, Suite 100 Oak Creek, WI 53154 414-762-8050

A New “Wallet Size” Health Risk Assessment: Is the Financial Wellness of the Employees Adding Cost to the Company?

Mary P. Stark , Waddell & Reed You might think, “What an obscure question... How can the individual financial wellness of an employee impact the bottom line of a company?” The answer is, “In many ways.”

First, let’s define what we are talking about. An individual’s financial wellness can be summarized as a state of minimal or no financial stress... the product of a strong financial foundation of manageable debt, ample emergency fund savings and living below your means. This is a process, not a singular event, and it goes far beyond just retirement savings.

Now that we’ve defined the topic, let’s consider the direct impact on both the American worker and the American business when the employees are NOT financially well. For starters, the lack of financial wellness in the workforce can seem overwhelming: 72% of employees report some level of financial stress, and 22% report extreme stress about money.1 Stress has significant and documented effects on an employee’s physical health: " "

• Twice the rate of heart attacks

" "

• Three times more likely to have ulcers/digestive tract issues

" "

• 500% increase in anxiety and depression

" "

• 44% experience migraines

" "

• Twice as likely to suffer from insomnia/sleep problems

" "

• Higher overall risk of diabetes, heart disease, high cholesterol and obesity.2

As a matter of fact, poor financial health is connected with 60% of employee illness, not to mention tardiness, absenteeism and turnover.3 Delayed retirement can also result from a lack of planning: only 26% of men and 17% of women believe their retirement plan is on track.4 As if increased health care costs, delayed retirement and poor attendance were not enough, there is also a direct impact on the productivity within the business: 44% of employees worry about finances while at work and 46% actually spend 2-3 hours per week at work dealing with these issues.5 So how can the employer assist the employees and ultimately the organization? Financial education can reduce employee stress by developing awareness, delivering information and creating empowerment to take more control of their personal financial situation. In fact, 59% of surveyed employees would be interested in participating in financial wellness education, if offered by the organization. 6 1 2 3 4 5 6

“Stress In America- Paying With Our Health”, American Psychological Association report, February 4, 2015 “Financial Wellness and Health Care Costs”, www.pfeef.org – Industry News & Research, compiled by Financial Finesse, March 2011 Purchasing Power Financial Wellness Study, July 2013 “State of US Employee Retirement Preparedness”, Financial Finesse 10/21/14 Purchasing Power Financial Wellness Study, July 2013 Source Media, Employee Benefit News, May 2013 online survey of subscribers and employees

It can also create a more seamless connection between personal financial health and the advantages of the group benefits package at work. There are seminars and workshops available to fit various levels of employee education needs, ranging from basic money management, credit and debt, retirement funding strategies, as well as more sophisticated topics such as estate planning, investment fundamentals and strategies for pre-retirees on Social Security filing.

Final thought: For many employers there is a true desire to help their employees on a personal level, both during the working years and beyond. For them, the greatest reward is not in their own bottom line impact, but in knowing that when the day comes that a loyal, hard-working, long term employee exits the company doors to enjoy their retirement years, they will actually be financially able to ENJOY THEIR RETIREMENT YEARS.

This article is meant to be general in nature and should not be construed as investment or financial advice related to your personal situation. Waddell & Reed does not provide tax advice and investing involves risk and the potential to lose money. Please consult your tax and financial advisor prior to making financial decisions. Mary Stark is a Financial Advisor with Waddell & Reed and can be reached at 262-521-9492 ext. 107 or email mstark@wradvisors.com for assistance. Waddell & Reed, Inc. Member SIPC.

Mary Stark has been a member of the greater Milwaukee community since 1987, when she joined the law firm of Whyte & Hirschboeck S.C., after graduating from law school at the University of Illinois, Champaign/Urbana. For the past 15 years, Mary has focused her career on insurance and financial services. She offers seminars and works with employers who want to enlighten and empower their employees to take more responsibility and control of their personal financial situation and retirement planning.

Seven Do’s and Don’ts of Brand Development Scott Seroka, Seroka Brand Development Developing a brand isn’t a one-time adventure – it is a journey that lasts as long as your company is in existence. A brand needs to be constantly monitored, measured, maintained, nurtured, improved and leveraged to provide customer value with the intention of earning lifetime loyalty and advocacy. How is this done?

Consider the following seven do’s and don’ts when developing your brand…

1. Don’t look at what your competitors are doing. This may seem counterintuitive, but one of the leading reasons for brand failure is building a brand based on what the competition is doing. You are not your competitors – you started your company because you had something better, different and/or unique to offer, and uncovering that unique brand offering is where brand development begins.

Do build your brand from the inside out. Your parents, teachers and coaches taught you to be yourself – not to follow and imitate someone else. This is the same philosophy you should follow when developing your brand. Who are you? How are you unique? Why do you exist? What are you capable of becoming? Nobody can answer these questions except for you.

2. Don’t boast unique selling points because they sound good, or because you think it’s what your customers want to hear. This is one of the biggest crimes companies commit when defining and promoting their brand. The problem with this “me too” strategy is it makes your brand blend in with every other brand you are competing with. Sure, there are things you’ll need to tout because they are at the thresholds of customer expectations, but when defining your USPs, define them in unique ways that communicate relevant and meaningful brand differentiation that will accelerate people through your sales process.

Do create USPs you can PROVE! Whatever it is that you claim – whether it is focused on product quality, service excellence, lead times, culture or other expectations, make sure you have the proof and the data to back it up. Also make sure you can create the culture and the internal systems to support your brand promise. Think about it this way: When a brand makes a promise it can only kinda-sorta fulfill, customers will be disappointed – or worse, feel as if they were deceived, and may never return.

3. Don’t place your focus on creating a tagline that sounds cool, clever and catchy. You’ve seen them all. They may be memorable, but that doesn’t mean they inspire people to change their buying habits or shift brands into consideration. The ROI of a cute tagline is less than the ROI on your savings account; so don’t be lured into this trap.

Do create a tagline that really defines your business. This can only be done when you have truly defined your brand. If the tagline happens to be clever and catchy, that’s great, but first and foremost, strive for creating one that has the strength and conviction you need to grow such metrics as brand consideration and customer acquisition.

4. Don’t assume your employees will support your new brand because you had an inspirational brand launch. You can spend a substantial amount of money on an inspiring and motivating brand launch, but those emotions you stir up in your staff will settle like a tired dog on your couch the following day. If a motivational speaker like Zig Ziglar or Tony Robbins has ever moved you, you know how that rah-rah moment quickly fades.

Do get everyone involved in living your brand the day after your brand launch. Launching a new brand should be an exciting time for everyone. It’s a new beginning, and you’ll need everyone on your side as well as their help to succeed.

You cannot be the brand you wish to be without the help of your people. For example, if your new brand is focused on innovation, you’ll need everyone’s help to create a culture that inspires, encourages and rewards innovative thinking.

Introduce a strategy to build your culture of innovation the day of, or at the latest, the day after your new brand launch.

Don’t be the leader that is all talk and no action. There are too many of those!

5. Don’t make promises to your staff that you can’t or won’t keep. I once had the displeasure of working with a CEO who revoked some rather lofty promises he made to his staff about how things were going to change for the better of the company in the spirit of becoming the new brand. I later learned he had a habit of over-promising and under-delivering, which explained the low morale and lack of respect for leadership throughout the company.

Do follow through on what you say you will do. Enough said.

6. Don’t assume a year later that everyone is living the brand and delivering on its promise. Living a brand takes practice, and lots of it, to get to the point where it becomes intuitive and second nature. It requires everyone to think and behave in certain ways. When everyone understands the brand and the vision is clear, decisions are easier to make, there is less conflict and everyone understands what it means to win and how their contributions impact the organization.

Do keep the brand alive. This is best done through building the culture to support your brand. It also includes appointing or hiring someone to be the company’s brand manager. In my opinion, the role of the brand manager is one of the most important in an organization.

7. Don’t forget to promote your brand internally. Just as you want to keep your customers engaged and interested in your brand to earn and maintain their loyalty, you’ll want to do the same to keep your employees engaged and interested in you. Internal brand promotion keeps enthusiasm levels at their peak, which has a direct impact on performance and productivity.

Do post your brand statement with pride in highly visible areas. Your brand should be visible everywhere, in different forms to serve as a constant reminder of why everyone should be excited about getting up in the morning to give you their best.

Remember that your brand is your most important asset, and it's the reason you are in business. If you follow these seven rules, you will become the brand you want to be, and you will most certainly grow.

Wisconsin’s only Certified Brand Consulting firm.

SEROKA Brand Development | Strategic Communications YOUR GROWTH. GUARANTEED.

TM

Seroka creates winning brands by providing the tools and strategies needed to help companies grow their critical internal and external metrics.

INTERNAL

Employee engagement Productivity Continuous improvement Retention Communication Culture

EXTERNAL

Brand awareness Brand differentiation New business acquisition Brand loyalty Profitability Brand advocacy

To learn about how we can help your company grow, contact Scott Seroka today. scott@seroka.com 414.628.4547

IBAW MEMBERS QUALIFY FOR DISCOUNTS ON SEROKA’S SERVICES!

What’s your Industrial Real Estate Worth?

Tony Haning, JLL Commercial Real Estate

As members of IBAW, many of you are business owners. If you own a business, you either own or rent real estate to accommodate your operation. If your business is successful and growing, there is a chance you will be in the market to expand at some point in the future.

The purpose of this article is to outline the general factors influencing the value of an industrial property. As an industrial real estate broker, I look at the property from several different perspectives.

In any instance, the acquisition cost is determined by the amount a knowledgeable buyer acting in their own best interest would willingly pay to acquire or lease a like asset.

Although the location of an industrial operation is generally dictated by the where the owner or employees live, the following factors impact the value of the property: Strong Labor Pool Manufacturers find it crucial to the success of their business to locate near an available labor pool. A centralized location near a large population of qualified and ambitious workers with access to public transportation is ideal.

Park Standards and Restrictions Business parks are recognized as superior business environments. In many cases a developer in conjunction with the local municipality has instituted strict building and landscaping standards, resulting in higher real estate values for the entire park.

Expansion The ability to expand is crucial as most entrepreneurs are optimistic and assume their operation will grow.

Businesses are seldom interested in moving to accommodate growth due to the obvious expense and disruption to the business.

Freeway Exit Businesses have strived to cutback unnecessary side road travel time and locate adjacent to an expressway or major interchange. Additional side road travel time will not only be viewed as an imposition to many users, employees and customers, but it also increases logistical costs.

The physical makeup of a property can directly impact a user’s operational flow. The following factors are considered and also significantly impact the value of an asset: Construction While it may seem obvious, other than location the most important component in determining the value of the asset is the type of material used in the construction process (i.e. metal or masonry).

The institutional or corporate user views masonry construction as a prerequisite. Masonry construction as compared to other building materials is more durable, has greater curb appeal, and as a result commands a higher value for the asset both in terms of potential rental rate as well as resale value.

Ceiling Height Lower ceiling heights restrict the manufacturers operation by eliminating or curtailing the use of certain equipment important in the manufacturing process.

In addition, reduced ceiling heights increase the cost of the product being stored. Industrial users are unable to take advantage of less costly cubic space and are forced to utilize more expensive floor space.

20-22’ clear is sufficient to accommodate the vast majority of manufacturers in the Milwaukee market.

Expected Features The subject building is equipped with all the requisite components to accommodate a variety of users. These include: sufficient electric power, efficient loading, modern high efficiency lighting, a painted interior and ample restroom facilities.

These amenities significantly reduce the acquisition cost for a buyer, providing a more marketable asset.

Floor plan Second and third generation property’s offer less-generic (i.e. segmented with concrete walls) layouts, which create an inefficient flow of raw materials and finished product in and out of the plant.

In order to best accommodate a variety of modern day industrial operations, current construction standards have evolved to create the most adaptable environment. Additionally, a more versatile facility yields a larger pool of potential users, generating greater value for the asset.

Sprinkler System In today’s regulatory environment, most municipalities are requiring large commercial and industrial facilities to have a fire protection system in place at the time of occupancy. In the event a system has not been installed the local authority will mandate installation of a sprinkler system, increasing the cost of occupancy.

From the occupant’s point of view, a building without a sprinkler system creates significant safety issues for employees and the product being stored, resulting in increased insurance premiums.

Installation of a sprinkler system will cost $3.00 to $3.50 per square feet of area covered. The variance is generally a function of the amount of finished office space. A building with a sprinkler system saves the occupant and/or the landlord significant dollars in unrecoverable tenant improvements.

Percentage of Office Space Generally, most industrial users require between seven and ten percent finished office space. When considering salability, users are not willing to pay for square footage that cannot be utilized or does not contribute to the bottom line. Some potential buyers will view the possible demolition of some office space as a discount to the price they are willing to pay for the asset.

Although this process may only take place as often as every five to ten years, it is not to be taken for granted. Your real estate creates an essential foundation for the success of your business; therefore, it is important to stay educated. Attorneys and accountants can provide strategic advice. I encourage you to find a knowledgeable real estate broker that can be an ongoing resource for your business.

BUSINESS BEHIND THE SCENES: LakeView Technical Academy

Forget the usual perception of what a high school is and enter a former 40,000 square foot manufacturing facility that is shattering the concept of what a high school is, and what - and how - it teaches.

The learning experience happening to 432 kids in Pleasant Prairie is nothing short of unique and eye opening.

Here, just about every class is a "shop class" with hands on learning in courses of: • Electromechanical Technology / Robotics • CNC Machining • Biomedical • Nano Technology • Electrical Engineering • Manufacturing Engineering • Industrial Engineering • Computer Information Technology • Civil Engineering • Automated Manufacturing Systems

Date: Thursday, June 4th Time: 10:30 AM - 1:00 PM Location: 9449 88th Ave. Pleasant Prairie, WI Cost: $10.00 (Covers lunch) To register, click here.

Join us for a hands on tour with the teachers and students of this very unique high school.

After the tour we'll enjoy lunch with the kids and teachers involved with your tour so you can ask questions and learn more.

Agenda: 10:30 am - 11:00 am - Gather, networking 11:00 am - 12:30 pm - Tour 12:30 pm - 1:00 pm - Lunch Tour starts promptly at 11:00 am.

WI INDUSTRIAL MARKET CONTINUES TORRID PACE Report Produced by C&W | The Boerke Co. Research Department and Industrial Team’s Jeff Hoffman & Chad Vande Zande

MARKET FUNDAMENTALS Large deals by Quad Graphics (189,900SF) and Briggs & Stratton (237,000SF) and the adding of the Amazon property (1m SF), Niagara Bottling (377,000 SF) and Kenall Manufacturing (354,000 SF) have further compressed the vacancy rate in SE Wisconsin to 4.86%. Rental Rates are going up and there is presently 1.2 Million SF of Spec space that is coming online by the end of 2015.

WISCONSIN HIRING FINALLY BREAKING LOOSE? Wisconsin Job creation is accelerating. January to February added a statistically significant amount of jobs estimated at 14,900 and Unemployment ticked down to 4.8% . The Milwaukee Region was just rated the 4th best region nationally for outlook in job growth in Manpower’s most recent quarterly survey.

Q1 2015 US ECONOMY HEADWINDS? Q1 GDP is projected in the low 1% growth range Durable Goods orders fell for the 5th consecutive month ISM declined for the 5th consecutive month Orders for Non Defense capital goods fell for the 6th straight month.

Capacity Utilization slipped to 78.9% Ag & Energy will remain depressed through 2015 Strengthening U.S. Dollar is cutting into the profitability of multinationals and affecting exporting opportunities

Demand is “White Hot” for NET Leased Industrial Real Estate 5,1177,235 SF in Deals Average price per Square Foot was $45.47* Average Cap Rate was 8.83% Lowest Cap Rate on a Stabilized Core Deal *Excluding Data Center / Truck Terminal Sales was 6.60%

32 deals traded in SE Wisconsin over the past 12 months.

Three portfolio’s traded in 1st Quarter of 2015: • 10 Building 1.7 million SF CenterPoint North • 3 Building 409,000 SF Luterbach Portfolio • 3 Building 452,000 SF KTR Portfolio

INDUSTRIAL INVESTMENT SALE COMPS (PAST 12 MONTHS) 9% 16%

6%

Stabilized Long CoreTerm – 18 Deals Value Add Core – 4 Deals

56%

Stabilized Flex – 5 Deals Value Add Flex – 3 Deals

13%

($51.69 PSF) ($26.04 PSF)

($54.03 PSF) ($22.61 PSF)

Data Center / Truck Terminal 2 Deals ($251.86 PSF)

Jeff Hoffman

For more detailed market comps, please contact us.

FOR MORE INFORMATION, CONTACT:

Cushman & Wakefield | The Boerke Company 731 N Jackson Street, Suite 700 (414) 347-1000 www.boerke.com

Jeff Hoffman, SIOR, CCIM Principal, Industrial Team (414) 203-3038 jhoffman@boerke.com

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

The market terms and definitions in this report are based on NAIOP standards. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals. © 2015 Cushman & Wakefield, Inc. | The Boerke Company. All rights reserved.

IBAW is on an upward trend of growth and we are actively recruiting businesses just like yours to join!

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Help yourself, your business AND your Team Members.

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Charles Fry Robert W. Baird

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Steve Kohlmann IBAW

Steve Van Lieshout K & S Technologies Get involved with IBAW. Consider joining a committee!

Contact Steve Kohlmann for more information.

4 Key Points About the Ugly GDP Report Ray Keating, Chief Economist, SBE Council, Washington D.C.

The under-performing U.S. recovery served up one of its worse quarters from January to March this year. There are 4 key points that must be noted from the Bureau of Economic Analysis’s first quarter GDP report that was released on April 29.

1. The Economy Barely Grew Real GDP barely inched ahead at a mere 0.2 percent rate in the first quarter. That was down from 5.0 percent in the third quarter 2014 and 2.2 percent fourth quarter. The trend is not good.

2. Private Investment Down The key takeaway – and major concern – from this GDP report is that real private fixed investment declined by 2.5 percent in the first quarter, with nonresidential investment down by 3.4 percent. In terms of nonresidential categories, only intellectual property investment grew nicely (7.8 percent), as structures investment plummeted by 23.1 percent and equipment investment was basically flat (+0.1 percent). The topline gross private domestic investment number was up by a poor 2.0 percent, but even that minimal growth was all about changes in private inventories.

This poor recovery has been largely about poor private investment, and those troubles obviously continued – and arguably got worse – in the first quarter.

3. Exports Down Big In the first quarter, real exports declined by 7.2 percent. Many blame a stronger dollar for this, but while the dollar comes into play in the short term, this largely is about poor economic growth among many trading partners. Meanwhile, it’s also worth noting that import growth slowed dramatically from 10.4 percent in the fourth quarter 2014 to 1.8 percent in the first quarter. Slow import growth seems to go against the dollar theory, but it does line up with the dramatic slowdown in GDP growth, that is, in the domestic economy.

4. The Consumer Slows Real personal consumption expenditures had been accelerating for three quarters (1.2 percent first quarter 2014, 2.5 percent second quarter 2014, 3.2 percent third quarter, and 4.4 percent fourth quarter), but then slowed to 1.9 percent in the first quarter 2015. This is not surprising given the other numbers in the GDP report, and that consumers are followers.

Will another poor GDP report during one of the worst recoveries on record serve as a wake up call to policymakers that this economy needs an aggressive and dramatic change on the policy front? For entrepreneurs and small businesses to succeed and invest, policies need to move away from increased tax and regulatory burdens toward substantive, sustainable tax and regulatory relief and certainty.

Raymond J. Keating, is Chief Economist of the Small Business & Entrepreneurship Council (SBE Council).

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Legislative Fix Moving Ahead for Wisconsin’s New Manufacturing & Agricultural Credit Jim Brandenburg, CPA, MST - Sikich LLP

In IBAW meetings and publications in recent years we have introduced you to Wisconsin’s new tax incentive - the Wisconsin Manufacturing and Agriculture Credit (referred to as the “MAC”). The MAC came about in 2011 to provide an incentive for Wisconsin manufacturers and agricultural companies to remain and grow here, and also perhaps to have out-of-state companies move here. It was scheduled to begin in 2013, and when fully phased-in by 2016 it would essentially exempt any Wisconsin manufacturing and agricultural income from Wisconsin income tax. The MAC was championed by Representative Dale Kooyenga and Senator Glenn Grothman in the legislature.

Magazine Content Needed Consider Submitting an Article!

The MAC, however, had some problems for individual taxpayers when it was drafted and this glitch was recently identified. Here is the issue in a nutshell: the MAC would reduce a taxpayer’s Wisconsin individual income tax, but then would trigger a Wisconsin minimum tax for nearly the same amount. Thus, there may be little, if any, net savings for the MAC in 2013 (a “MAC Attack?”). The legislature is trying to remedy this situation now so that taxpayers can realize the proper tax savings with the MAC on their 2013 Wisconsin individual tax returns.

The IBAW magazine is in need of content, we rely on our members and sponsors to supply us informative information.

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

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

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

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

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

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

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

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

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

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

Contact Steve Kohlmann for details.

Articles submitted by our members & sponsors.

Welcome New IBAW Members!

Meeting Recaps 2014 Wisconsin Manufacturing Knowledge Summit

Power Test

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

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

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

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

Chris Halaska

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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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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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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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