October 2018 IBAW Magazine

OCTOBER 2018 October 8th Sales Roundtable

October 19th “The Future of Autonomous Transportation” - Lindsey Lau, TAPCO

Inside This Issue:

TROTIER & HANNEMAN: THE NEW SHIFT IN WORKPLACE HARASSMENT TRAINING

KITTLE: KOOYENGA STILL WANTS WISCONSIN TO GO TO A FLAT TAX

PERGL: CONSISTENT FINANCIAL DASHBOARDS PREVENT SURPRISES

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.

MEDIA LINK 2018 Wisconsin Manufacturing Summit The Independent Business Association of Wisconsin awarded Governor Scott Walker its Bart Adams Award for his role in reviving Wisconsin’s manufacturing sector at the 2018 Manufacturing Summit.

Industry leaders also reflected on factors leading to recent successes and discussed how to confront current and future challenges facing manufacturing in the state.

Executive Director Steve Kohlmann President Dan Hansen Secretary Charles Fry Baird Treasurer Tony Palmen Sikich Directors Jim Leef ITU AbsorbTech Ann Barry Hanneman Von Briesen Law OďŹƒce John Weber Hypneumat Lisa Mauer Rickert Industries Robert Gross Gross Automation Scott Seroka Seroka Brand Development

Click here to watch.

Tom Parks Annex Wealth Management Jake Hansen Jacsten Holding Scott Hirschfeld CTaccess

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

Manufacturing Summit Wrap Up Steve Kohlmann, IBAW Executive Director

The 2018 Wisconsin manufacturing summit is in the books. Wow! What a meeting!

I have been organizing our monthly meetings for about 12 years and this meeting by far was the best. The energy level in the ballroom of the Wisconsin Club was high and the panel discussion was well received by everybody.

Our tagline for the meeting this year was “Wisconsin Taking the Lead in Manufacturing.” Which is completely true. In the past few years the manufacturing sector in our state has roared back and it seems the sectors that supply it are doing very well. But it doesn’t come without its challenges, and the biggest challenge is attracting and retaining a workforce.

We also had great fun at the meeting using the phrase “Wisconsin’s Business Future is Bright” and handed out sun glasses to everybody attending the meeting. I thought this would make a great photo op with Gov. Walker with everyone behind us wearing the glasses. I think I was right! (See the photo on the opposite page.)

Special thanks to our panelists, John Mellowes from Charter Manufacturing, Amy Maurer from TG3 Electronics and Rich Simonson from Carmex. And special thanks also to Sen. Ron Johnson who, while he couldn’t attend the meeting due to Washington commitments, did send a personalized video message.

I wanted to give a special shout out to the students from Milwaukee Lutheran High School Free Market Academy who attended the summit. It’s a great way for the students to learn valuable networking skills and to get up to speed with what takes place at an event like this. It is also a valuable reminder for us as business people to reach out and connect with our future leaders and workforce.

And an event like this doesn’t happen on its own. I would personally like to thank our sponsors PyraMax Bank and Vrakas CPAs for their financial support for the Manufacturing Summit. I would also like to thank all of you who attended the meeting or were invited guests which added to the energy level in the room. Finally I would like to thank Kris Fyre at the Wisconsin Club and all the staff members who took care of us during the morning and made it a seamless event.

If you enjoyed the Manufacturing Summit I hope you’ll reach out to members of your Business network and invite them to a future IBAW event. I think we have some of the best programming of any business organization plus the networking it generates, as well as the energy level of every meeting contributes to the camaraderie in our organization. I understand time is tight for many of you and you are pulled in many directions. But I hope that you’ll carve out some time for yourself and enjoy what we offer at IBAW. Life is short and meant to be experienced. Come out and experience our meetings and join in the fellowship it generates. I don’t want you to miss out.

Bring a friend and join us at the our monthly meetings - you’ll be glad you did!

See photos on previous page.

Special thanks to the sponsors of the 2018 Manufacturing Summit.

Independent Business Association of Wisconsin

MONTHLY MEETING Monthly Meeting Friday, October 19, 2018 | Time: 7:00 am - 9:00 am Location: The Wisconsin Club, 900 W. Wisconsin Ave. Milwaukee

“The Future of Transportation” - Lindsey Lau, TAPCO

Everyone has witnessed the explosive growth of ride sharing services like Uber and Lyft and the simultaneous evolution of automotive technology that aims to take on the whole task of driving for us. How will these changes unfold and impact our daily commute? What do connected vehicles and new models of vehicle ownership mean for our communities and the future of transportation?

Join Lindsay for a topical and informative presentation on new automotive and transportation technology, emerging trends, and highlights from cities around the country who are pioneering amazing projects in traffic management!

LOCATION

THE WISCONSIN CLUB 900 W. WISCONSIN AVE. MILWAUKEE

7:00 AM

REGISTRATION & NETWORKING

7:30 AM

BREAKFAST & PROGRAM

9:00 AM

PROGRAM ENDS

Register at IBAW.com

Sales Roundtable Monday, October 8th, 2018 | Time: 7:30 a.m. - 9:00 a.m.

Location: CTaccess, 740 Pilgrim Parkway, Elm Grove

Sell the Prospect by Selling Yourself!

If there is one trait common to all top sales executives, it is self confidence, the ability to sell one's self to others. But in any group of sales people this trait varies a great deal. We see it all around us these days -- sales people who are not truly proud of their profession - sales people who have lost a major degree of their selling power simply because they no longer have that spark so necessary to selling themselves to the prospect.

Sales Roundtable is a free event open only to IBAW members.

Register at IBAW.com

Legislative Roundtable Thursday, November 1st 2018 | Time: 3:00 pm - 4:30 pm Location: Sikich Conference Room, 13400 Bishops Lane, Brookfield Join

the IBAW Public Policy Committee for this roundtable discussion featuring both Republicans and Democrats from Madison.

We’ll discuss the top issues facing Wisconsin business owners. This is your opportunity to let your elected officials know what’s on your mind.

FREE EVENT FOR IBAW MEMBERS! Non Members $25.00

Register at IBAW.com

Consistent Financial Dashboards Prevent Surprises Paula Pergl, Vice President of Recruiting, Lauber Partners

Most business owners have some way of intuitively understanding how their company is doing.

That insight could be based on any number of factors, including new orders, shipments, machine hours, labor activity, etc.

Key Performance Indicators (KPIs) are information that owners and managers rely upon to stay on track. As a company grows and the owners get distracted or as business conditions change, it’s important to formalize those KPIs. There are numerous financial and operational factors that can be viewed as key performance indicators, including: Revenue Orders Time to ship Labor Hours Machine Hours Inventory Hours Accounts Receivable Backlog New Customers Staff Turnover Returns Working Capital Each of these areas have subsets and circumstances unique to an industry. KPIs should reflect a company’s goals and be quantifiable and actionable. The goals become the benchmark against which ongoing data is judged and responses considered.

Along with company-wide KPIs, departments can have their own indicators based on their roles in reaching the company’s overall goals. The structure that conveys key performance indicators can be in the form of written weekly activity reports.

Dashboards offer quick review Today’s technology offer an even quicker way for time-pressed executives to review current information – the computer screen dashboard. Like the dashboard on a car, a computer screen dashboard can offer company owners and managers a quick look at current business conditions and allow them to make adjustments based on the numbers. The best dashboards

use graphic displays that allow the user to quickly grasp the situation and determine what steps could be taken in response to the information.

Like any business activity monitoring, dashboards can provide information tailored to the specific needs of a particular business or to replicate the data the business owner intuitively followed during a less formal stage of the company’s life.

Data is real-time One of the great benefits of dashboards is that information is pushed to them from the underlying financial systems so data and charts that are displayed are always real-time.

A dashboard can relay financial statistics as well as information on activities and processes within the operation. Since the dashboards are intended for a quick overview, it’s best to select a limited number of key indicators that are meaningful... less is better. Too much information can make dashboards overbearing and, over time, ignored. KPI dashboards can be built as a custom software application or acquired as an available product or web-based subscription service.

While dashboards can be convenient, what really matters is the consistency of information a business owner or management team receives. Through that consistency trends can be observed, allowing proper responses.

The New Shift in Workplace Harassment Training: EEOC Now Advocates for “Just a Little Respect” Geoffrey S. Trotier and Ann Barry Hanneman, Von Briesen Law Firm

For decades, employers understood that workplace harassment training should focus on behaviors that meet the legal definition of unlawful harassment and create legal liability. Following guidance from the U.S. Equal Employment Opportunity Commission (EEOC) and the courts, employers required workplace harassment training that included, healthy doses of “don’t do this” and “you really should not do this.” At one time or another, we all probably have participated in that type of training.

As a result, employers ended up providing training that focused on not crossing that “legal liability” line. But, when the EEOC embarked on a study as to why these types of training models didn't actually reduce the overall numbers of unlawful harassment claims filed, the agency changed its thinking. And employers should too.

The EEOC’s recent position is that effective workplace harassment prevention training should actually be focused on building an environment based on respect and employee empowerment.

Instead of dwelling on legal standards and what not to do, training should “promote respect and fairness, and the participants’ responsibility for contributing to respect in the workplace” and provide employees with needed skills to intervene when they observe disrespectful or abusive behavior.

For most employers, this departure from traditional legalistic training might be surprising. However, the EEOC has supported their position change with extensive study, culminating in the Report of the Co-Chairs of the EEOC's Select Task Force on the Study of Harassment in the Workplace. After an 18 month study of how to prevent workplace harassment, the EEOC considered feedback from sociologists, psychologists, investigators, trainers, attorneys, employers, and employee advocates.

Although focused on prevention, the EEOC recognized that employee conduct and behaviors that might not be legally actionable, could contribute to a hostile work environment. So, rather than emphasizing the narrow legal definition of harassment when training, the EEOC now advocates for the focus of the training to be on respect.

This respectful workplace training remains in line with the Supreme Court’s position that it will not impose a “civility code” on the workplace when it determines whether conduct constitutes unlawful harassment. However, this new mode of training focuses on behavior that, if left unchecked, could lead to unlawful harassment. By recognizing that the majority of harassment claims stem from disrespectful behaviors, this training approach focuses on the positive behaviors and what employees and managers should do to create a respectful, collegial environment.

Establishing an effective training program emphasizing this new approach relies upon five core principles outlined by the EEOC. These include: (1) the commitment from organization leadership; (2) consistent and demonstrated accountability; (3) strong, comprehensive harassment policies; (4) clear complaint procedures; and (5) regular, live, interactive training tailored to the particular audience. This program should not be a “one size fits all,” although each principle should be included in any effective program.

In addition, the EEOC encourages an emphasis in “bystander intervention” training to empower all employees to address conduct that doesn’t conform to a respectful workplace. This training should include the following: • Awareness to enable bystanders to recognize problematic behaviors; • Collective responsibility to motivate bystanders to step in and take action; • Empowerment to show employees how to appropriately intervene; and • Resources to provide support for intervening employees.

• Empowering the bystander often goes a long way toward creating a positive and respectful work environment to promote a culture where respect is an expected priority.

What Should My Training Include?

The EEOC provides sample model training modules, which can be found at: https://eeotraining.eeoc.gov/profile/web/ index.cfm?PKWebId=0x2547b105. When using these modules, remember that these should be tailored to your organization’s individual needs and population. Oftentimes, providing the most effective training for your company requires careful planning, the right messaging and making sure there is a structure in place to address the needs of employees if these issues arise.

The EEOC provides useful training tips that should be will focus on the following: • Respect – Use of respectful words and behavior; • “Derailers” – Understanding of “what goes wrong”, such as incivility, abusive conduct and unlawful harassment; • Policy review – familiarization with the organization’s anti‑harassment policy, reporting procedures, and employee rights and responsibilities; • Handling complaints with fairness – training supervisors how to remain fair and unbiased while investigating and addressing complaints; • Stepping up and stepping in – empowering non‑manager employees to intervene when they observe or learn about problematic behavior; • Coaching respect – teaching supervisors how to coach and model appropriate behavior and deal with rude/uncivil behavior; and • Feedback – teaching employees the power of peer‑to‑peer feedback in workplace situations.

The EEOC’s new “positive” approach to workplace harassment training will require employers to completely rethink their prior approach. However, this new approach is supported by sound research and extensive authority. All employers should give due consideration to this model for creating a respectful workplace, in order to proactively address increasing complaints – both internal and external – of incivility and harassment.

If your organization would like assistance in developing such a program, please feel free to contact either Geoffrey S. Trotier at gtrotier@vonbriesen.com or Ann Barry Hanneman at ahanneman@vonbriesen.com to discuss this approach further.

Kooyenga Still Wants Wisconsin To Go To A Flat Tax Matt Kittle, MacIver News

MADISON – State Rep. Dale Kooyenga isn’t backing down on his ambitious plan to move Wisconsin to a flat income tax state.

In fact, the Brookfield Republican who is exiting the Assembly to run for the state Senate seat being vacated by Republican Leah Vukmir says he wants to make bold tax reform a priority in the next legislative session.

Kooyenga will first have to win in November. If he does that, the CPA/lawmaker will have to sell his under-4 percent flat income tax proposal to a legislative body that was cool at best to the idea in the last session.

In an interview this week with MacIver News Service, Kooyenga said he would push his “Road to a Flat Tax” package in the Senate, as he did last year in the Republican-controlled Assembly. The proposal garnered support there from GOP leadership and rank-and-file Republicans, but it was mostly met with shoulder shrugging in the Senate.

“We need to have a big, bold proposal, and that can’t just be a two-year vision,” Kooyenga said. “Visions don’t condense themselves into 24-month budget cycles or election cycles.”

He still wants to see a flat tax for Wisconsin income taxpayers that is lower than Illinois’ 4.95 percent rate. That won’t happen over night. Flattening Wisconsin’s hefty progressive tax would require filling loopholes, ending special favor tax credits, and cutting government expenditures.

More than anything, it would require the political will to do all of the above. And such fortitude has been hard to come by in modern-day politics.

“At a philosophical level tax reform is really easy. You say, ‘We’re going to get rid of these tax deductions and credits and we’re going to lower the overall rates.’ Then the distribution table comes out,” Kooyenga said. And then the political wars are waged – somewhere between the old chestnut of class warfare on the left and cronyism-based tax credits on the right.

Kooyenga’s 2017 package called for a 3.95 percent flat income tax rate implemented over a decade. In an analysis, the Legislative Fiscal Bureau projected over $2 billion in annual income tax cuts with the full implementation of the flat tax.

Kooyenga’s 2017 package called for a 3.95 percent flat income tax rate implemented over a decade. In an analysis, the Legislative Fiscal Bureau projected over $2 billion in annual income tax cuts with the full implementation of the flat tax.

Kooyenga’s proposal is similar to the MacIver Institute’s “Glide Path To A 3% Flat Income Tax,” released in January 2017.

To pay for the tax cuts, Kooyenga’s reform plan proposed the elimination or reduction of several tax credits, including: Marriage Credit – “The proposal eliminates the credit in order to promote tax code simplicity, fairness and assist in paying for the flat tax,” the plan document asserts.

Property Tax/Rent Credit – Would repeal the credit for renters.

Electronics Recycling Fee – Unique to Wisconsin, the fee calculation is “complicated and creates onerous paperwork,” Kooyenga wrote. “The fund associated with the fee is solvent and the fee is no longer required.”

Working Families Tax Credit – Kooyenga says the tax credit was created to serve as a bullet point on a press release. Less than 1 percent of Wisconsin filers qualify. Kooyenga asserts elimination will simplify the code.

“This was a tax credit made up for political purposes and kind of a gotcha moment in a press release, and no one really qualifies for that tax credit,” he said. “I’ve been trying to get rid of it for a long time.”

The Legislature axed the credit – which was collected by about 725 individuals in the previous filing season – but Gov. Scott Walker used his veto pen to restore it.

State. Rep. John Macco, (R-Ledgeview), chairman of the Assembly Ways and Means Committee, is leading the Legislature’s examination of the state’s troubled tax system. Earlier this year Macco said a sweeping overhaul could deliver $2.5 billion in increased revenue by cutting questionable state exemptions.

A mountain of tax breaks for this group or that has made reform a daunting task. Macco likes to point to the fact that Twix candy bars, for instance, are tax exempt while M&Ms are taxable under Wisconsin’s quirky system of exemptions. The state tax code is littered with similar examples.

Kooyenga said the committee is making progress, but it also is hearing an earful from various groups that want to hold on to their “special thing.”

Coach’s Corner: Team Presentations Steve Bobowski, Dale Carnegie Training Coach

Dear Coach Bobowski, I have just been looped in on a major ongoing initiative for my company. I will be spearheading major event presentations to our clients. These presentations will be made by several members within different departments in our company. I have been in the audience for quite a few team presentations that were NOT as good as they should have been. What can I do to make sure that my team presents effectively to our clients?

Brett Dear Brett,

Team projects are always challenging, when you add the pressure of a presentation it leaves the window open for various mistakes to occur. With proper preparation and clear goals you can avoid many of the pitfalls that are associated with a team presentation.

• Audience Analysis – As your team prepares for the presentation, begin by establishing your purpose for the presentation. Identify your audience and determine their wants, interests, and needs. Build your presentation around the items that you have identified. By taking time to analyze your audience it will help define a theme and group of points that will help direct your presentation.

• Establish a Team Purpose – Take time to reflect on the purpose of presenting as a team. What are the main points you want to make? Who are the best people to explain and reinforce these points? How will these people work together to express these points? By answering questions like these it will help determine structure and necessary individuals for the presentation.

• Visual Factors – The visual message that you send is even more important in a team presentation. Everyone on the team needs to take responsibility for the visual image the team projects. Your team will be evaluated by your listeners based on every person, not just yourself. Although dress is important and everyone should dress in a similar way, visual factors also include; presentation style, body language, audience response and format of visuals.

These items can have a dramatic effect on the consistency and organization of your presentation.

• Opening – Do not open the meeting with introductions. Rather engage your audience immediately. You have 8 seconds to make a first impression! Once you have your audience’s attention, briefly introduce your team by name and role that they will play in the presentation.

• Close Strong: What is the Action you want your audience to Take. And, then what are the Benefit to them when they do. Remember: We are all in Sales.

• Team Debrief – Following a team presentation, schedule a time to meet and evaluate the team’s performance. It is important to keep the attitude positive and optimistic about the future. Approach the meeting with the intent of continuous improvement. Celebrate success and continue momentum into the next presentation.

Make It A Great Day!

Steve

President’s Circle IBAW / DALE CARNEGIE PRESIDENTS CIRCLE A LEADERSHIP PROGRAM FOR CEOs, PRESIDENTS, AND BUSINESS OWNERS

As the CEO, President, or Owner you are asked to produce more results with fewer resources, meet and exceed competition, innovate and motivate. This creates very difficult teams and leadership challenges. Leaders must encourage teamwork, bottom-up idea generation, alignment, loyalty and above all commitment. Rather than direct and dictate, leaders must inspire and motivate!

The Presidents Circle: The IBAW and Dale Carnegie Training have developed an exclusive Leadership program for IBAW members only. The Presidents Circle combines peer group engagement and highly targeted executive Dale Carnegie Training among peers to help you achieve significant results. These results will be achieved by providing insights, peer challenges, and developing leadership skills which are aligned with your organization and which will help drive agendas. By combining corporate mission, vision and values with our unique methodology employees will begin supporting a world they helped create.Ultimately, the only sustainable competitive advantage is the innovation, motivation, and creativity of the employees of an organization. Establishing a strong leadership culture provides the environment where innovation and creativity can flourish.

Program Specifics: • • • •

Meetings with other IBAW CEOs/Presidents/Business Owners 10 monthly meetings Dale Carnegie Executive Leadership Training workshop each session.

Round Table Issues Discussed and Resolved

• • •

Guided Yearly planning Accountability among peers.

Business Results

The President’s Circle will help you achieve results by: • • •

Providing training among peers Creating and sustaining change initiatives Ensure continuous improvement and bottom-line impact

• • • • •

Align the organization behind a common vision Develop a habit of fact-based decision making at every level.

Strengthen and implement strategic planning Create a value based culture to ensure loyalty Build energy and trust up and down the organization to insure customer loyalty.

Program Leader: Steve Bobowski

“Knowledge isn’t power until it is applied.”

-Dale Carnegie

Commitments: • Attend meetings • No cost for meetings, a benefit of IBAW membership •

Referrals or 3 enrollments

New program starts Friday, October 5th!

This program is now forming and is limited in the number which can attend.

For more information, contact Program Leader Steve Bobowski by clicking here.

26 Ways Your Brand Makes a First Impression Scott Seroka, Seroka Branding

Have you ever had an unpleasant first-time encounter with a brand and wondered how the owner of the company would react if s/he knew of your experience?

This tends to be more of an issue with larger companies where the owner is several titles insulated from the interactions between customers and his or her company’s many employees and touch points.

Sure, some first impressions carry more weight than others in the eyes of prospective customers (e.g. waiting two business days to receive a response from an email versus having a minor misspelling in the email.) However, if multiple small red flags appear during the customer journey, there comes a point when the customer begins to lose interest and confidence in the brand.

For your benefit and convenience, I’ve created a checklist of the 26 ways your brand makes a first impression – those impressions that occur during the pre-purchase phase of the sales cycle. We all know how important these things are, and some organizations are taking them so seriously that they are now employing people adorned with the title, Director of First Impressions – and it’s not just the person answering the phone. It’s someone who is responsible for making sure the brand is delivered appropriately throughout all the brand’s touch points. Enjoy.

1 2 # # # 3 4 # # # # 5 6 7 # # # # # 8 9 10 11 # #

The first things that appear on a Google search of your name (Ads, glassdoor.com ratings, articles, blogs, press releases, LinkedIn, social media, etc.)

Your website: • The content of your homepage and how well it speaks to your customers • How easy or difficult it is for customers to find information • How well your website is written (e.g. grammatical errors, too much jargon, clarity of thought, etc.)

Online profiles (LinkedIn, Twitter, YouTube, Facebook, etc.)

Blogs and articles: • Quality of content • Amount of content • Frequency of posts • Grammar What customers hear or experience when they call the number on your website How long it takes for a customer to receive a reply to his or her email or phone call What customers see and experience when walking into the main entrance of your offices: • The appearance, friendliness and body language of the person greeting visitors • Signage • Awards • Cleanliness • Lighting The punctuality of people showing up for meetings and phone calls The car your people drive and how clean or dirty it is (inside and out) Your company-branded vehicles (how well they are maintained) Attire/clothing # • Wrinkled vs. pressed # • Scuffed vs. polished shoes

# # # 12 13 14 # # # # 15 # # # 16 17 # # # # 18 19 20 21 22 23 24 25 26

# • Branded clothing # • Professionally appropriate # • Over the top with bling Hygiene – enough said Firm vs. limp handshake The quality and content of conversations (sales and service): # • The questions your people ask # • Active listening skills # • Establishing and maintaining eye contact # • Cursing Trade shows: # • Your booth - its messaging, size, and lighting # • Staff at the booth, their titles, and what they are doing (Are they staring at their smartphones oblivious to people walking by?) # • Cleanliness vs. dirty and/or cluttered The quality of your packaging and proper use of colors and graphics The office and shop tour experience # • Is anyone smiling? # • Is anyone talking? # • Is it clean or dirty and cluttered? # • Do people appear as if they enjoy their jobs (body language)?

Aggressiveness or laziness of salespeople Advertisements: print and banners The quality and relevance of your sales materials Quality of business cards Your email provider (aol.com and hotmail.com business email addresses are acceptable only for microbusinesses.

Gmail is gaining more acceptance for small businesses.)

Your networking and elevator speech How (un)professionally your people conduct themselves at meetings and events Quality, content and interaction during presentations, workshops, seminars, events and panel discussions What others say about experiences they have had with your brand

Based on your business, you could likely add to this list. As the owner or CEO of your company, the best test of first impressions will always be placing yourself in the shoes of prospective customers who are comparing your brand against several others.

Subsequently, ask yourself what company you would do business with based on your journeys.

In the States: Personal Income Grows Strongly Ray Keating, Chief Economist, SBE Council, Washington D.C. The U.S. Bureau of Economic Analysis published its latest look at state personal income on September 25, and it offers up some interesting information on the national economy, and across the states.

First, personal income numbers over the previous three years were revised. It’s worth noting that personal income growth took a big step up in 2017, with growth of 2.5 percent, compared to 1.3 percent in 2016 and 1.1 percent in 2015.

Second, the annualized growth in U.S. personal income over the past four quarters have been strong – 4.2 percent in the third quarter 2017, 5.0 percent in the fourth quarter 2017, 5.0 percent in the first quarter 2018, and 4.2 percent in the second quarter 2018.

Third, the latest data show that annualized personal income growth in the second quarter of 2018 exceeded 3 percent in 44 of 50 states. And 49 states grew at 2 percent or better.

The top five states with the highest percentage growth are: Texas 6.0 percent Louisiana 5.9 percent Kentucky 5.5 percent North Dakota 5.4 percent Colorado 5.3 percent The states with the lowest percentage growth are: Washington 1.6 percent Rhode Island 2.0 percent Massachusetts 2.2 percent New Hampshire 2.7 percent Pennsylvania 2.9 percent These recent steps up in personal income growth are tied, in part, to the dramatic shift in federal policymaking over the past 20 months regarding taxes and regulations. An emphasis of tax increases and hyper-regulation over the previous eight years shifted in the direction of regulatory relief and restraint, and business tax relief. That has incentivized business investment, and resulted in stepped up economic and income growth.

Indeed, even the states that inflict heavy tax and regulatory burdens have benefited from these federal policy changes. At the same time, that doesn’t mean that imposing heavy and/or increasing burdens on entrepreneurship, small business and investment in the states do not have negative effects.

To the contrary, the analysis and evidence presented in the Small Business Policy Index 2018: Ranking the States on Policy Measures and Costs Impacting Small Business and Entrepreneurship, which I write for the Small Business & Entrepreneurship Council, make that economic reality quite clear.

So, in this period of stepped up income growth thanks to positive changes in federal policies (minus tariffs), states should be searching out ways in which they can further improve matters by implementing wise policies of tax and regulatory relief at the state and local levels.

____ Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council.

Keating’s latest book published by SBE Council is titled Unleashing Small Business Through IP: The Role of Intellectual Property in Driving Entrepreneurship, Innovation and Investment and it is available free on SBE Council’s website here.

: S E L A S

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

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

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

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

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

Who should attend: • Sales professionals of any level.

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

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

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

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

- Jerry Wick, CEO, Custom Data Too Mail

IBAW Public Policy Committee Hosts Legislative Roundtable in Brookfield

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

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

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

Our next Legislative Roundtable is scheduled for Thursday, November 1st. Visit IBAW.com for details.

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!

nline!

Join o

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2018 Membership Committee

Jake Hansen Jacsten Holdings

Charles Fry Robert W. Baird

Mike Poludniak Merrill Lynch

Dan Hansen

Tom Parks Annex Wealth Mgt.

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

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

Magazine Content Needed Consider Submitting an Article!

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

The IBAW magazine is in need of content, we rely on our members and sponsors to supply us informative articles. The digital magazine is sent out to over 650 contacts statewide and the magazine is parked on the web where, on average, it gets over 1100 views.

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

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

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

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

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

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

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

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

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

Contact Steve Kohlmann for details.

Articles submitted by our members & sponsors.

Welcome New IBAW Members!

Meeting Recaps 2014 Wisconsin Manufacturing Knowledge Summit

Power Test

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

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

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

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

Chris Halaska

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

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

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

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

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

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

Suite N408B

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

people companywide in 5 states.

414-847-7100

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

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

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

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

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

6 Photos courtesy of Tim Townsend.

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

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THERE’S ROOM AT THE TABLE

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

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

Jim Leef, President & CEO, ITU AbsorbTech

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