Wisconsin Business Voice January 2016

January 2016: Issue 17

Official magazine of Wisconsin’s Chamber

New Year, New Leadership Incoming WMC Chairman Bob Kamphuis, Mayville Engineering Company, Inc. Page 4

Inside: Lead Story: 2016 CEO Predictions p. 22 Improving Wisconsin’s Business Tax Ranking p. 20 The Business of the Green Bay Packers p. 36

A sincere

THANK YOU to our clients and staff.

First Business is proud to have received an outstanding 97% in our annual client satisfaction survey. This phenomenal score is a testament to the wonderful relationships that exist between our staff and clients.

We’d like to thank our clients for this great compliment, and our staff who works hard each day to go above and beyond in delivering outstanding client satisfaction.

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These results are based on a survey conducted by an independent third party expert.

Y O U R S U C C E S S C O M E S F I R S T. BUSINESS BANKING

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WISCONSIN

BUSINESS VOICE From the Editor Welcome to the 17th edition of Wisconsin’s only statewide business magazine, which is published by Wisconsin’s largest business association – Wisconsin Manufacturers & Commerce.

The circulation of Wisconsin Business Voice has hovered around 4,000 C-level executives since the publication was created in 2012. We have now expanded that circulation to 16,000 with the goal of exposing more state business leaders to news and information they simply won’t find anywhere else.

For the lead article of this edition we talked to 12 business leaders from all sectors of the economy to get their take on where we’re headed in 2016. The good news?

CEOs remain cautiously optimistic in what WMC president/CEO Kurt Bauer calls this ‘bipolar economy’ – good news one day, bad news the next.

WMC is Wisconsin’s leading advocate for business. Our lobbying team is in the halls of the Capitol building every day to ensure Wisconsin’s businesses are protected. We work to share business best practices and tell the stories of those who are leading their industries. We are also the state safety council training workers so that every employee goes home safely from work every day.

As we move forward into 2016, drop me a note if you have a topic you’d like to read about in a future edition. And stay tuned for April where we’ll focus on venture capital, solving the talent shortage, Fab Labs and more.

Happy New Year!

In this issue…

2

The Failure of Shortcut Economics

4

It Takes Teamwork to be Successful

6

The End of a Shameful Era in Wisconsin

8

The Future has Begun

KURT R. BAUER, WMC

ROBERT D. KAMPHUIS, MAYVILLE ENGINEERING COMPANY

SCOTT MANLEY, WMC

JIM MORGAN, WMC FOUNDATION

Annual Future Wisconsin Economic 10 Second Summit EVENT WRAP-UP

and Career Planning 16 Academic STEVE BENZSCHAWEL, WMC Leadership 18 Education CHRIS READER, WMC Wisconsin’s Business Tax Ranking 20 Improving JASON CULOTTA, WMC

22-25 2016 PREDICTIONS

CEOs Cautiously Optimistic

Engineer’s Perspective – Spinning our Wheels 30 An RAJ SHETH, MEAD & HUNT, INC. Year’s Resolution: Safety Benchmarking 32 New JANIE RITTER, WMC/WISCONSIN SAFETY COUNCIL Wisconsin’s Economic Engine 35 Fueling MARK HOGAN, WISCONSIN ECONOMIC DEVELOPMENT CORPORATION

Business Evolves and Grows 36 Packers MARK MURPHY, GREEN BAY PACKERS Time to End Wisconsin’s Unnecessary 39 It’s Nuclear Moratorium LUCAS VEBBER, WMC

Editor, Wisconsin Business Voice kpettersen@wmc.org

Collaboration between Industry and 41 Effective Education

DR. DAN THOMA, UNIVERSITY OF WISCONSIN – MADISON

Common Ground 42 Seeking CONGRESSMAN POCAN (D) AND CONGRESSMAN RIBBLE (R)

Wisconsin Business Voice is published quarterly by Wisconsin Manufacturers & Commerce. WMC is Wisconsin’s chamber of commerce, manufacturers’ association, and safety council representing businesses of all sizes and from every sector of the economy. WMC's address is 501 E. Washington Avenue, Madison, WI 53703, (608) 258-3400. This publication is proudly printed on paper made in Wisconsin.

Kurt R. Bauer, WMC President/CEO Katy Pettersen, Editor (kpettersen@wmc.org) Jane Sutter, Designer (jsutter@wmc.org)

and Education: Working Together to 44 Business Solve the Workforce Shortage

JIM LADWIG, RACINE AREA MANUFACTURERS AND COMMERCE

The Failure of Shortcut Economics Kurt R. Bauer, WMC President/CEO

W

ant more Americans to become homeowners?

Well, just lower interest rates and underwriting standards so more people qualify for a mortgage. Want incomes to rise? Then raise the government imposed minimum wage. Want everyone to have health insurance? Simply mandate employer coverage.

For every economic challenge, too many believe there is an easy shortcut solution that often involves government interference into the free market. The problem is, of course, it doesn’t work.

There are numerous recent case studies to prove my point, starting with the push to expand homeownership in the late 1990s, which sowed the seeds of the housing collapse about a decade later.

lost their jobs as of last October because of the government mandate. And the number of workers either laid-off or not hired in the first place will continue to rise before the full $15 per hour goal is reached next year.

There are similar reports coming from San Francisco as a result of its new $15 an hour minimum wage law. Several restaurants have been forced to close and a small comic book store owner told Forbes last spring the law will cost his business $80,000 more per year, which will lead to job losses and price increases.

No one should be surprised by what is happening. The nonpartisan Congressional Budget Office (CBO) warned in 2014 that raising the minimum wage to $10.10 would cost the U.S. economy half-a-million jobs.

While only about two percent of Americans earn the minimum wage, they tend to be the most vulnerable members of the workforce. They are largely young and/or low skilled looking to gain valuable work experience with the hope of moving up the rungs of the economic ladder. That can’t happen if entry level jobs are eliminated by well-intentioned, but economically illiterate politicians seeking a quick fix.

Instead of encouraging people to save for a down payment and buy an affordable “starter home” that they could afford both the monthly payment and upkeep on, government policies created a shortcut. Cheap That brings me to the federal Affordable money from low interest rates “Homeownership, minimum Care Act (ACA), which promised and easy credit from reduced to both lower the cost of healthcare wage and health care are just three underwriting standards and increase access to it via a made homeownership more examples of government failing to combination of mandates and accessible to people with subsidies. In Wisconsin, deductibles achieve economic objectives by directly lower incomes and/or less than have increased 65 percent, or seven perfect credit histories. intervening in the marketplace.” times faster than wages, since ACA was The result was that millions of newly “qualified” homebuyers flooded the market, inflating prices and creating a nationwide bubble that eventually led to the financial crisis in 2008 when people began to default on mortgage payments because their debt-to-income ratios were too high.

Another example is the push for a $15 an hour minimum wage to address stagnant incomes. Rather than encouraging people to obtain the skills needed to advance beyond traditionally entry-level and low-paying jobs like foodservice and retail, redistributionists want government to mandate a higher minimum wage across the board. When that happens, businesses have two options – raise the price of their product/ service or lower employment costs, including layoffs and reduced hours.

That’s what is happening in Seattle, which is phasing-in a $15 an hour minimum wage through 2017. The American Enterprise Institute estimates 700 restaurant employees have 2

enacted. Media reports have revealed the sky-high deductibles have discouraged people from seeking needed medical care because they simply can’t afford it. In other words, the real-world impact of ACA has been the exact opposite of the stated goal.

To make matters worse, CBO recently estimated that ACAimposed mandates on employers will cost the U.S. economy about 2 million jobs by 2025.

Homeownership, minimum wage and health care are just three examples of government failing to achieve economic objectives by directly intervening in the marketplace. In all three cases, the consequences have been dire and in the latter two, the results were the opposite of the intended goal. They didn’t produce the promised shortcut. Instead, they pushed millions of Americans further away from a more prosperous future. BV

Follow Kurt on Twitter @Kurt_R_Bauer

WMC Board of Directors WMC OFFICERS

CHAIR, *Daniel T. Ariens, President & CEO, Ariens Company, Brillion VICE CHAIR, Robert D. Kamphuis, Chairman, President & CEO, Mayville Engineering Company, Inc., Mayville SECRETARY, Tod B. Linstroth, Senior Partner & Member & Past Chair of Management Committee, Michael Best & Friedrich LLP, Madison TREASURER, Gina A. Peter, CEO, Central States Commercial Banking, Wells Fargo Bank, Milwaukee

EXECUTIVE STAFF

PRESIDENT/CEO Kurt R. Bauer PRESIDENT, WMC FOUNDATION James R. Morgan VICE PRESIDENT, GOVERNMENT RELATIONS Scott Manley VICE PRESIDENT, MARKETING Katherine E. Pettersen

WMC BOARD OF DIRECTORS

Jeffrey W. Bailet, M.D., Executive Vice President, Aurora Health Care / CoPresident, Aurora Health Care Medical Group, Aurora Health Care, Milwaukee Sidney H. Bliss, President & CEO, Bliss Communications, Inc., Janesville

*Damond W. Boatwright, Regional President & CEO Hospital Operations, SSM Health Care of Wisconsin *David H. Bretting, President & CEO, C.G. Bretting Manufacturing Company, Inc., Ashland *Thomas A. Burke, President & CEO, Modine Manufacturing Company, Racine Brad W. DeNoyer, CPA, Partner, Baker Tilly Virchow Krause, LLP, Madison *Scott A. Fawcett, President & CEO, Springs Window Fashions, LLC, Middleton *Philip B. Flynn, President & CEO, Associated BancCorp, Green Bay

*Not Pictured

James D. Friedman, Senior Partner, Quarles & Brady LLP, Milwaukee

Stephen D. Loehr, Vice President, Kwik Trip, Inc., La Crosse

Philip C. Fritsche, Sr., President, Beaver Dam Chamber of Commerce, Beaver Dam

Scott A. Mayer, President, QPS Employment Group, Brookfield

Robert Gerbitz, President, COO, Hendricks Commercial Properties, Beloit *Gary M. Gigante, President & CEO, Waupaca Foundry Inc., Waupaca Patricia Leonard Kampling, Chairman, President & CEO, Alliant Energy Corporation, Madison *Robert L. Keller, Chairman, J.J. Keller & Associates, Inc., Neenah Clifford J. King, CEO, Skyward, Inc., Stevens Point Scott E. Larson, Executive Director, Marshfield Area Chamber of Commerce & Industry, Marshfield James M. Leef, President, ITU AbsorbTech, Inc., New Berlin *Allen L. Leverett, President, WEC Energy Group, Milwaukee

*Patrick J. McConnell, CEO/Owner, FLASH, Inc., Green Lake *James J. McIntyre, President and CEO, Greenheck Fan Corporation, Schofield J. R. Menard, Executive Vice President & Treasurer, Menard, Inc., Eau Claire *Paul Palmby, Executive VP & COO, Seneca Foods Corporation, Janesville William C. Parsons, President, Palmer Johnson Enterprises, Inc., Sturgeon Bay *John Pfeifer, President, Mercury Marine, Fond du Lac *Nicholas T. Pinchuk, Chairman & CEO, Snap-on Incorporated, Kenosha Aaron B. Powell, Partner/ Chief Strategy Officer, Flexion Inc., Sun Prairie Joseph T. Pregont, President & CEO, Prent Corporation, Janesville

Michael W. Salsieder, Retired President & General Counsel, Kolbe & Kolbe Millwork Company, Inc., Wausau Eric W. Sauey, Chairman & CEO, Seats Incorporated, Reedsburg *Edward H. Schaefer, President & CEO, Citizens Community Federal, Eau Claire Karl A. Schmidt, President & CEO, Belmark Inc., De Pere *Kristine N. Seymour, Regional Vice President of Market Development for Illinois/Michigan/ Wisconsin, Humana, Inc., Waukesha Rajan I. Sheth, Chairman/ CEO, Mead & Hunt, Inc., Middleton *Dirk Smith, President & CEO, Super Steel, LLC, Milwaukee Jay L. Smith, Chairman & CEO, Teel Plastics, Inc., Baraboo *Karen L. Szyman, Executive Director, The Chamber of Manitowoc County, Manitowoc

Susan L. Turney, M.D., CEO, Marshfield Clinic Health System, Inc., Marshfield S. Mark Tyler, President, OEM Fabricators, Inc., Woodville Donald D. Wahlin, CEO, Stoughton Trailers, LLC, Stoughton *Michael S. Wallace, President/CEO, Fort HealthCare, Fort Atkinson *Todd Wanek, President & CEO, Ashley Furniture Industries, Inc., Arcadia *David J. Yanda, President & CEO, Lakeside Foods, Inc., Manitowoc

PAST CHAIRS, PICTURED

Arthur W. Nesbitt, Nasco International, Inc. Rockne G. Flowers, Nelson Industries, Inc. Todd J. Teske, Briggs & Stratton Corporation

*John B. Torinus Jr., Chairman, Serigraph Inc., West Bend

Wisconsin Business Voice

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It takes Teamwork to be Successful WMC Incoming Chairman Bob Kamphuis

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obert D. Kamphuis is Chairman, President and CEO of Mayville Engineering Company, Inc. (MEC) where approximately 2,000 employee shareholders in 17 manufacturing facilities nationwide have built the company into the # 1 fabricator in the U.S. for the last five years in a row. MEC achieves superior results based on sound planning through great people who understand and achieve the MEC mission. That mission is customer success, value creation, continuous improvement and PRIDE (Personal Responsibility In Daily Excellence).

Bob grew up on a family dairy farm near Alto, Wisconsin not far from MEC’s headquarters. At a young age he learned the importance of good character, teamwork, the value of hard work, planning ahead, taking good care of what you have and being proud of a job well done. He also learned that even the best plans can be adversely affected by things beyond our control, like the weather. That’s where lessons in perseverance, determination and “saving for a rainy day” were learned along with helping others when there was a family sickness, injury or bereavement at a neighboring farm. Through his church, school, family and family friends, Bob counted himself fortunate to have many positive role models to point him in the right direction while having fun and enjoying the people around him. Those positive role models, great people to work with, strong mentors, an attitude of confidence coupled with humility and hope, a love of learning and applying that knowledge to ever more complex people and business issues, a competitive spirit and an inquisitive nature were the influences that formed his foundation and shaped his outlook.

Bob earned his bachelor’s degree in accounting from the University of Wisconsin-Whitewater then started his career and became a CPA at Arthur Young & Company, now Ernst & Young. While there, clients such as Harley Davidson, Oshkosh Corporation, Giddings & Lewis and the people who worked there stoked his interest in manufacturing. Bob spent nearly 19 years of his career at Giddings & Lewis, Inc. as Corporate Controller, Treasurer with the last nine years as General Manager and then President of their factory automation division. It was during his time with Giddings & Lewis that many of his management, leadership and technical skills were enhanced and polished by his mentors and colleagues and the lesson of “Every Success Story is a People Story” was learned.

Bob joined MEC in September of 2005 and found a place and culture where his background and experience were a great fit.

From the employee ownership culture of an ESOP that aligns results with rewards to the rural communities where MEC has its facilities and employees, this felt like home. MEC’s growth story started in 2006 with strategic planning meetings and a mission that is still alive and well today, providing the foundation for tomorrow’s success. And it should come as no surprise that at MEC like everywhere else, “Every Success Story is a People Story.”

The success stories are many and each one is unique. Whether it’s a state-of-the-art technology application, tooling design from a 3D printer, or the simple story of someone staying the extra hour to make sure a rush job from a customer gets delivered on time, it’s still a People Story. MEC’s “People Story” includes a

Kamphuis inside the MEC plant

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Kamphuis: Continue Wisconsin’s Transformation

Part of the Mayville Engineering Company team

compound annual sales growth rate of nearly 20 percent for the past 10 years and the value of the company’s stock growing almost five times during that same 10-year time frame. MEC grew internally through investment and externally through acquisitions while broadening and diversifying the markets served and adding to MEC’s broad array of product and service offerings. Most importantly, MEC always finds a way to win and grow.

MEC is actively involved in giving back and supporting the communities, counties and states in which its employees live and work. MEC continues to develop and sponsor engineering and robotics programs with local universities, ongoing development and training programs with technical colleges, high schools and middle schools across the nation to promote career opportunities in manufacturing. The company regularly makes charitable donations to area high schools, athletic and scholastic booster clubs, music and art clubs, veterans groups, area chambers of commerce, Special Olympics, United Way, YMCA Boys and Girls Clubs, community firefighters, emergency medical service groups and various other local organizations where MEC employee shareholders are actively involved.

On the personal front, Bob has been married for 35 years to Connie, his high school sweetheart. They have two adult sons, Andy and Nick, who both recently became engaged and are planning their respective weddings in 2016. Both sons are graduates of the University of Wisconsin. Andy is a CPA working as a Controller for a manufacturing company headquartered in Illinois and Nick is a Continuous Improvement Engineer, working for a manufacturing company in Wisconsin. In addition to MEC and WMC, Bob is also the current Chairman of the CEO Council of the Manufacturers Alliance for Productivity and Innovation (MAPI), a current Board member for Wisconsin firms Brakebush Brothers, Inc. and SEATS, Inc, immediate past Chairman of Mercury Marine’s Supplier Advisory Council and a customerelected participant in Caterpillar’s “Digging Deep” Executive Development Program with Stanford University. His hobbies include whitetail and pheasant hunting, Lake Michigan salmon fishing, boating and watersports at Silver Lake near Wautoma, Wisconsin, Green Bay Packers football, University of Wisconsin basketball and spending time with family and friends. BV

How does Wisconsin’s economy compete nationally as well as globally? That’s a complex question with an equally complex answer. Most states, including Wisconsin, do not fully control their own destiny. Strong opposition caused by anti-growth federal policies coupled with a weak global economy are key factors that determine the direction of a state’s economy. However, Wisconsin has made monumental progress in transforming its reputation as a good place to do business, and incoming WMC Chairman Robert Kamphuis plans to perpetuate that transformation. “We have to protect what we’ve accomplished over the last five years while we continue to pursue additional reforms that support private sector business investment in Wisconsin,” Kamphuis said.

Reforms that include funding our transportation infrastructure projects are extremely critical to our state economy as well as our three biggest drivers – manufacturing, tourism and agriculture. “The WMC Board has made infrastructure funding a top priority,” Kamphuis said. “Funding transportation projects is one of the most important investments a state can make for its economic future.”

Kamphuis also believes Wisconsin needs additional regulatory and tax reform. He said aligning Wisconsin’s Family Medical Leave Act with the federal version is just common sense. Moving Wisconsin out of the “worst 10” of highest taxed states is another top priority, according to Kamphuis.

Another Kamphuis goal is to continue WMC’s success in supporting pro-business candidates for elected office. With 2016 a critical election year, beginning with the state Supreme Court race in April, there is a lot of work to be done.

Wisconsin Business Voice

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FREE SPEECH Scott Manley WMC Vice President of Government Relations

The End of a Shameful Era in Wisconsin

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rticle I, Section 3 of the Wisconsin Constitution declares “no laws shall be passed to restrain or abridge the liberty of speech or of the press.” It stands as a clear limitation on the Legislature’s ability to restrain the freedom of expression and preserves free speech as a constitutionally guaranteed right.

Yet in 1974, the Legislature ignored the Constitution and passed a sweeping restraint of free speech when Wisconsin’s first campaign finance law was enacted. That law regulated political speech by subjecting it to campaign finance reporting and spending limitations, including limits on speech which should not be regulated at all.

More specifically, the law allowed government to regulate political speech, under the guise of campaign finance law, even if the speech did not advocate for the election or defeat of a candidate. The law as originally enacted in 1974 allowed government regulators to limit the ability of citizens to criticize politicians and the positions they take on issues like taxes or spending.

regulators attempted to enforce campaign finance laws against us.

We fought back. In the decision known as Elections Board v. WMC, the Wisconsin Supreme Court cited the Buckley case and upheld the right to political free speech by corporations.

Since the WMC decision, state and federal courts have generally expanded the constitutional protections afforded to political speakers, including corporations. Cases like Citizens United v. FEC and WRTL v. Barland clarified and expanded the right to political speech.

However, the self-appointed speech regulators at the Wisconsin Government Accountability Board (GAB) apparently didn’t get the memo.

For example, the GAB plowed forward in 2010 with a new regulation that would have required corporations to disclose their donors, even if their speech was protected from regulation by Buckley. The GAB clearly hadn’t learned the lesson that Elections Board v. WMC should have taught them about the It didn’t take long for the U.S. Supreme scope of their regulatory authority and the Beginning in 2012, GAB staff Court to declare this type of speech agency was forced to stipulate in federal regulation unconstitutional. Only led the charge in a secret John Doe court their rule went too far. months after Wisconsin enacted its This should have been the final episode investigation of advocacy groups to campaign finance law, the SCOTUS in a long line of embarrassing rejections issued its landmark decision in Buckley investigate crimes that were never of the GAB’s tortured reading of v. Valeo in 1976. the law. After all, how many times do

committed.

Decades later, the Buckley decision remains the prevailing jurisprudence on free political speech and expression. It stands for the proposition that “the First Amendment forbids the government from regulating political expression that does not in express terms advocate the election or defeat of a clearly identified candidate.” In other words, you can’t regulate speech that discusses public policy and candidates unless that speech calls for their election or defeat.

In Wisconsin, campaign finance regulators were undeterred by Buckley. They continued to attempt to enforce laws that infringed upon the constitutional rights of political speakers, and did so for decades.

In 1996, WMC ran television ads criticizing the policy positions of three state senators. Our ads were ordered off the air, and election 6

message?

appellate courts need to tell an agency they misinterpret and misapply the law before they get the

Unfortunately, the GAB’s most egregious abuses of constitutional rights were still ahead.

Beginning in 2012, GAB staff led the charge in a secret John Doe investigation of advocacy groups to investigate crimes that were never committed and conduct that was not prohibited by law.

Working with the Milwaukee District Attorney’s office, the GAB investigated more than a dozen groups like WMC who were guilty of nothing more than voicing constitutionally protected speech during the recall elections in 2011 and 2012.

Millions of emails and other documents were seized by prosecutors,

as were laptops, tablets and other electronic devices belonging to targets of the John Doe investigation. WMC did not turn over any documents to prosecutors in response to a subpoena, opting instead to fight the legality of the investigation.

In January 2014, the judge presiding over the John Doe investigation invalidated the subpoenas on the basis no crime had been committed. The judge said it was undisputed that groups like WMC had not engaged in “express advocacy” which calls for the election or defeat of a candidate. As such, our speech was protected from regulation by the legal standard Buckley had established nearly forty years earlier.

The special prosecutor hired by the GAB appealed and the case ultimately went to the Wisconsin Supreme Court. In July last year, the Supreme Court issued a scathing decision chastising prosecutors for engaging in an unconstitutional investigation, saying it utilized a legal theory that is not based in the law or reason. The investigation was terminated by the Court, and the seized information was ordered to be returned to the owners from which it had been unlawfully taken.

How could the GAB, which quarterbacked the legal analysis for the prosecution team, have gotten it so wrong (again)? Perhaps the answer lies in their desire to prosecute groups like WMC based upon what they wished the law was, as opposed to what the law actually is.

For many years, GAB officials have shown hostility toward the type of corporate free speech groups like WMC routinely engage. For example, consider how hard they worked to silence our speech in 1996 before the Wisconsin Supreme Court ruled against them.

The GAB’s legal counsel, who spearheaded the John Doe investigation for the agency, has publicly disparaged WMC’s advocacy. He even testified at a GAB public hearing that WMC’s

advocacy is a “big problem,” and expressed his desire to keep it off the air year round.

Those statements betray an attitude that GAB staff view themselves as speech regulators instead of campaign finance regulators. That is, they appear to have viewed their campaign finance regulatory authority as a means to broadly regulate speech, including speech they do not believe belongs in the public discourse.

The GAB and Milwaukee DA’s office weaponized Wisconsin’s campaign finance law to use it against organizations with which they disagreed politically. Using flawed legal theories previously rejected by multiple appellate courts, they seized property and demanded the correspondence of private citizens – a tactic that should horrify anyone who believes in freedom and due process.

Last fall, the Wisconsin legislature passed bills to reform the GAB and bring Wisconsin’s campaign finance laws in line with the Constitution and recent court decisions. Gov. Walker signed those bills into law in December and for the first time since the 1970s our campaign finance laws now reflect the principles of free speech courts have routinely guaranteed for decades.

Freedom of expression and the right to criticize government and public officials are fundamental in our country, yet the GAB and prosecutors attempted to criminalize speech and ultimately imprison people based upon what they said and how they said it. It’s difficult to conceive of behavior more un-American than the tactics employed by the GAB and Milwaukee DAs as they trampled on the constitutional rights of dozens of citizens and organizations.

Let’s hope our new laws put an end to this sad and shameful era of government speech policing in Wisconsin. BV Follow Scott on Twitter @ManleyWMC

• Wisconsin’s Chamber of Commerce • Wisconsin Manufacturers' Association • Wisconsin Safety Council

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FUTURE WISCONSIN Jim Morgan WMC Foundation President

The Future has Begun Will Wisconsin Survive?

T

he Future Wisconsin Project is an “umbrella strategy.” Our job is to set a course for Wisconsin to become the most competitive state in the nation. By doing so, every local community is in a better position to be the most competitive city, town or village. The most competitive for jobs, talent and quality of life.

The next few pages of this edition of Wisconsin Business Voice feature a synopsis of the second annual Future Wisconsin Project Economic Summit. There are photos and summaries of everything that went on that day. But, not really!

What REALLY happened was more than 400 business, education and government leaders shared ideas. Chancellors talked to human resources professionals about workforce needs. CEOs talked to school teachers about the changing face of students and young workers. School superintendents talked with local chamber executives about how to solidify the business/education relationship. And, between every session, best practices were exchanged. Here are just a few I heard that day: Florence – The entire school district has just 431 K-12 students yet found the resources to put in a Fabrication Laboratory at the high school. Their goals are to provide more students with a highquality education, provide those students with a quicker route to the workplace and encourage them to pursue the opportunities available locally. They also open the lab to local entrepreneurs.

Fond du Lac – The Fond du Lac Association of Commerce has launched “Fond du Lac Works!” It is the first coordinated community effort to address the skilled worker shortage.

Professional research of the Fond du Lac area workforce consistently demonstrates a shift in demographics which places the entire community in an immediate and critical situation; there will simply not be enough competitively skilled workers to fill available jobs in the future without aggressive solutions being developed and implemented now.

Sheboygan – The Sheboygan Business and Education Partnership spent the past year exploring community demographics and workforce needs. As a result, they are working on five priorities:

• Engagement: Provide information and experiences to expand student engagement in career exploration and achieve communitywide engagement in the academic planning and career exploration process.

• Employability and life skills: Promote importance of employability and life skills.

• Affordability for all: Address funding, scholarships and financial assistance to remove financial barriers for all students.

• Community conversations: Create a collaborative voice among community leaders, educators and other community organizations.

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• Communications and marketing: Advance awareness, solicit engagement, call to action and celebrate successes.

Central Wisconsin – Skyward, an educational software company based in Stevens Point, is leading an effort to enhance education and training opportunities for information technology workers in the region. Skyward and other industry partners formed the Central Wisconsin IT Alliance, which will focus on developing the information technology workforce in the area and increasing student interest for jobs in the field. The North Central Wisconsin Workforce Development Board, the Wisconsin Institute of Public Policy and Service, local chambers of commerce and the University of Wisconsin-Stevens Point are also engaged in the project.

Madison – The Madison Metropolitan School District, in cooperation with the Boys and Girls Club of Dane County, has utilized the Advancement via Individual Determination (AVID) program to increase the cumulative and core (Math, English, Science and Social Studies) GPAs of students. The program focuses on, and has had success with, first generation college students, under-represented minority ww in the academic middle with the potential to excel in rigorous curriculum, students with positive behavior and good attendance, students with fluctuating grades due to inconsistent study habits or poor study skills and students who plan to attend a college or university upon graduation.

Fox Cities – The Fox Cities Chamber of Commerce recently conducted the “Talent Upload: Computer Science / IT & Engineering Tour.” The tour is designed to familiarize college students from around the Midwest with the Fox Cities community, its top employers and the limitless career paths available there.

Employers in the Fox Cities depend on high-quality talent to meet current needs and facilitate future growth. Talent Upload is the matchmaker, giving students an opportunity to explore life as a young professional in the Fox Cities, and employers a chance to engage them before they enter this ultra-competitive market.

During his presentation at the Future Wisconsin Economic Summit, Kip Wright, Senior Vice President for Manpower North America, displayed a slide detailing how employers are attracting talent. Number one on the list was “adopting non-traditional – or previously untried – recruiting practices.” As the saying goes, “It is not the strongest nor most intelligent who will survive but those who can best manage change."

Wisconsin is a survivor. BV

Follow Jim on Twitter @JimMorgan1960

Brand Wisconsin – Moving from “Why?” to “How?”

F

ollowing up on a consistent theme raised at last year’s Wisconsin Future Summit, Kelly Lietz from the Wisconsin Economic Development Corporation (WEDC) and Jela Trask from Nelson Schmidt, WEDC’s marketing agency, advanced the discussion relating to the state’s branding efforts. At the Summit, they shared key criteria for a successful brand strategy and invited feedback from the audience on three potential brand statements meant to reflect Wisconsin’s unique value proposition – Can Do; Be Bold; and Ever Forward.

“What we’re talking about is much more than a tagline for our state,” said Lietz. “We’re defining a way of being, and a way of talking about that way of being that resonates with our target audience and drives action.”

Lietz explained the state’s branding initiative needs to focus as much on internal audiences as it does on people outside the state.

“If we are to fully maximize the value our state delivers, we need to consider all the ways people interact with brand Wisconsin – as citizens, as students, as members of our workforce, as visitors and as business leaders.” Moreover, stakeholders in Wisconsin’s economic development play an important role in living “brand Wisconsin” in the work they do every day.

Trask shared examples of other state branding efforts, stressing the importance of a coordinated statewide effort to achieve a single, all-encompassing brand to maximize impact and efficiency, a strategy that few states have succeeded at delivering.

“To succeed, a powerful state brand must fulfill three critical criteria – it must be true, ownable and actionable,” stated Trask.

Lietz and Trask’s presentation was less of a typical marketing “reveal” and more of a working session, with attendees invited to provide real-time feedback on how well the proposed brand statements reflect Wisconsin’s core personality traits: original, passionate, innovative, hardworking and independent.

“Our presentation in December and the feedback from attendees is an important step in our process,” said Lietz, adding that necessary future actions include further testing of the brand statements in various target markets, trademark reviews, creative development and continued discussions with the many stakeholders whose messaging intersects with the state brand. BV

www.FutureWI.org

The Future Wisconsin Project Perception Study The survey of over 2,000 Americans from all 50 states was conducted as part of the Future Wisconsin Economic Summit which boiled down some important topics of where Wisconsin both leads and lacks.

The biggest and perhaps most inaccurate perception of Wisconsin is that 52 percent of all respondents believe Wisconsin has a shortage of job opportunities. What tends to lead people to this perception? It could be that the majority of respondents think jobs in Wisconsin are focused around agriculture, healthcare and food processing. Technology was far down the list which doesn’t even include manufacturing as a staple career path.

Respondents also perceive Wisconsin negatively in terms of an unpredictable climate and social intolerance. Contradictory to these responses is that people both in and outside the state think Wisconsin is friendly, beautiful and a great place for outdoor recreation.

The Future Wisconsin Project aims to enhance people’s perceptions of the state to show that America’s Dairyland has more than just cheese and the Green Bay Packers; it is a great place to not only visit, but to live and raise a family.

Visit www.FutureWI.org for more information and to read the survey results.

Wisconsin Business Voice

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Second Annual Future Wisconsin Economic Summit Attracting talent, branding Wisconsin, the changing workforce, finding biotech expertise, managing the state’s perceptions, employing millennials and benchmarking Wisconsin… all of that was covered in the second annual Future Wisconsin Economic Summit. More than 400 business, government and educational leaders came together to continue to plot a course of success for the Badger State.

Demographics

Wisconsin Taxpayers Alliance President Todd Berry may have had the most difficult task of the day – trying to predict what would happen if our demographic challenges over the next 20 years come to fruition. Berry touched on the impact on schools, colleges and universities if they had fewer students; Medicaid if more people needed the services and fewer were paying for it; property taxes if there were fewer homeowners; wages in a market where talent was in demand; public services if there were fewer taxpayers. He provided plenty of food for thought and certainly made the case for keeping and attracting talent to Wisconsin.

Benchmarks

A key object for TFWP in 2015 was to competitively benchmark Wisconsin against the other 49 states. Over 45 benchmarks measuring talent, business competitiveness, life quality, entrepreneurial spirit, global engagement and government effectiveness were released at the Summit.

Wisconsin ranks 23rd in business competitiveness, 22nd in talent, 18th in life quality, 30th in entrepreneurial spirit, 21st in global engagement and 22nd in government effectiveness. Even though the data coming from these benchmarks shows Wisconsin is average across the board, there are several key areas where Wisconsin beats other states. The state is in a good position to ensure that 20 years from now, Wisconsin continues to be a state with a talented workforce and a thriving economy.

Perceptions

The Future Wisconsin Project, with the help of the Wisconsin Technology Council and UW-Madison, conducted a social media survey looking at people’s perceptions of Wisconsin. Wisconsin's reality and perception align on many items but the state has a few blind spots. Wisconsin is affordable, safe and a great place to enjoy outdoor recreation. But it is also viewed as cold, socially intolerant and lacking in job opportunities.

The survey of over 2,000 Americans from all 50 states was conducted as a result of last year's Future Wisconsin Economic Summit where it became clear that the Badger State has an image problem that hurts the retention of its existing population, especially young people. That image also negatively impacts attracting people from outside the state who might otherwise be convinced to move to Wisconsin to address a declining workforce.

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The Future Wisconsin benchmarks were released at the Summit

Talent Attraction and Retention

Kip Wright, Senior Vice President of Milwaukee-based Manpower North America, spoke at the summit about the human age – the ingenuity of individuals and of the community. How can Wisconsin win the war on talent? According to Wright, one in three U.S. employers reported difficulty filling jobs. While many companies spend immense focus on their budget plans, Wright suggests they need to start spending the same if not more time coming up with talent plans. Knowledge transfer, onboarding programs, succession management, retention programs, flexible work models, training and development are key to ensuring talent retention.

Kevin Conroy, President and CEO of Madison-based Exact Sciences, provided a case study which showed how building and retaining high-quality talent helped their company grow from three employees in 2009 to 719 employees in 2015. From manufacturing to bio-tech companies, Conroy stressed the importance of engaging employees and drawing upon their strengths. The pillars of Wisconsin’s long-term prosperity are innovation, trade, talent and infrastructure. Conroy said the state needs to build on the strength of the UW System, develop strong global markets, align education with employers and modernize transportation and broadband access to be competitive.

Young Professionals

What do young professionals want in a workplace, and once you have them, what makes them stay?

According to NEWaukee, an organization committed to connecting employers and employees, young professionals are looking for a few key things when starting or expanding upon their careers. Young professionals are looking for relationships and authenticity, both with their peers and Angela Damiani and Jeremy Fojut from employers. An NEWaukee opportunity for personal fulfillment is also important along with the ability to be a part of a social surrounding called third space – places and activities separate from home and work environments. What is the key to retaining talent according to NEWaukee? Communication, trust and the ability for young professionals to grow.

Continued on next page…

The

Future Wisconsin Project

Exact Sciences CEO Kevin Conroy

www.futurewi.org Wisconsin Business Voice

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Governor Walker

Gov. Walker highlighted what Wisconsin needs to be successful five, ten and twenty years from now and thinking long-term is the best way to grow the state’s economy. He stated the unemployment rate is the lowest it’s been since 2001, taxes are lower and Wisconsin is fiscally strong. Looking ahead, the Governor stressed the importance of students continuing to enroll in programs where we see the biggest skills gap – professional trades. He stated Wisconsin needs to be a great place to not only live, but to raise a family. The Walker administration will be touring the state in 2016 to hear from people and companies about where their struggles lie to work on solutions to ensure long-term sustainability.

Gov. Walker also made news by hinting during his remarks he might run for a third term in 2018.

What’s Next

Up next for TFWP is continuing the work of implementing the academic and career plans for every 6-12th grader in Wisconsin, taking the state’s benchmark and jobs data and localizing it for communities, and fleshing out the branding strategy for Wisconsin.

The seven state partners are also developing initiatives and all of the ideas will be put before the attendees for their input and prioritization. The agenda for 2016 will be finalized in January. BV

The Future Wisconsin Project partners and WMC board members met with Gov. Walker prior to his remarks. Left to right: Rolf Wegenke, WAICU; Morna Foy, WTCS, Ray Cross, UW System; Tony Evers, DPI; Bob Kamphuis, Mayville Engineering Co.; Gov. Walker; Gary Gigante, Waupaca Foundry; Mark Hogan, WEDC; Mark Tyler, OEM Fabricators.

Governor Scott Walker

The Future Wisconsin Project Partners

72 Local Chambers of Commerce

The WMC Foundation is dedicated to building a better future for Wisconsin by providing business and economics education, workforce development initiatives, local chambers of commerce support, safety training programs and business best practices.

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Thanks to these Foundation Sponsors for your support throughout 2016

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Ariens’ Chairmanship Readied State for Future Challenges

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o WMC Board Chairman has it easy, but Dan Ariens may have faced more than his fair share of challenges during his two-year term, which officially ends January 29. That’s because Ariens, whose day job is president/CEO of Brillion-based Ariens Company, served double duty as vice chairman and then chairman of the Wisconsin Economic Development Corporation (WEDC) at the same time he chaired WMC. Serving just one of the two high-profile volunteer leadership positions demands thick skin and steely resolve. Doing both at the same time should require body armor. But through it all, Ariens has provided farsighted and unwavering leadership to both organizations with equal emphasis on improving Wisconsin’s economy now and in the future.

Under Ariens’ watch, WMC began The Future Wisconsin Project, a 20-year economic planning initiative. The goal of Future Wisconsin is to work with other important stakeholders from business, academia and government to identify the state’s longterm economic threats and devise strategies to address them.

Ariens insisted Future Wisconsin focus on the workforce shortage and improving the business climate because both are foundational to the state’s economy.

Other highlights of Ariens’ chairmanship include the enactment of landmark Right to Work legislation and WMC’s support of pro-business candidates during the 2014 elections. WMC’s Issues Mobilization Council also raised and spent a record $9.6 million last year to educate the public on issues that impact Wisconsin’s economic competitiveness.

“Few people understand just how much time and energy Dan has committed to make Wisconsin a great state for business,” said Kurt Bauer, WMC president/CEO. “Wisconsin’s national and global reputation for being an attractive place for business investment has improved dramatically in recent years. Many people and entities deserve credit, but Dan should be near the top of the list.”

Ariens says the business community needs to have a continuing role in public policy development and that can only happen through an organization like WMC. “I’ve learned we have an immense amount of expertise, talent and resources within the businesses community across Wisconsin,” he said. “We have some challenges to overcome in order to remain competitive, but if we can tap into these resources and work together for the benefit of the state we’re a very powerful resource for change.”

Finding the right talent to fill key staff roles is critical, according to Ariens. “I can attest from first-hand experience WMC has the right talent working tirelessly on behalf of business day in and day out. The WMC board members and staff have made my tenure as Chair run very smoothly.” BV

Talent Conference

February 23, 2016 • 1:00 – 4:30 p.m.

Monona Terrace Community & Convention Center, Madison Ken Gronbach Demographer 2014 Future Wisconsin Summit Featured Speaker

Registration

Regular Price - $100 Discounted WMC Member Price - $75

Lt. Governor Rebecca Kleefisch will present the two deserving companies and individuals with the Wisconsin Job Honor Award.

Sponsored by

Visit www.wmc.org/talent for more information and to register.

www.wmc.org/talent

WORKFORCE DEVELOPMENT Steve Benzschawel Director of Business World

Academic and Career Planning: Something We Can All Support!

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t’s tough to find things we can all agree on these days. But there is excitement on both sides of the aisle over a new law set to be implemented in the 2017-18 school year. Academic and Career Planning (ACP) is a process that, beginning in middle school, will help students individualize a learning plan that will help them set goals around education, skill development and career exploration.

ACP is both a process for student-led career exploration and a product – an individualized plan based on each student’s unique interests, abilities, values and goals. Students will begin the process in 6th grade and continue to adjust and re-evaluate their plan as they develop new strengths and interests over time.

The Process

Career exploration and skill development are not new concepts for Wisconsin schools and many already have great programs in place. Those current efforts will continue as elements of the ACP implementation. The process is broad and will encompass everything from self-assessment and identifying strengths, to setting academic goals and completing core course work. Career interest inventories aren’t new, but the ACP process will take those inventories and foster better alignment of students with hands-on experience through job shadows, work-based learning and youth apprenticeships all documented and saved in an online portfolio.

The goal is to build on existing efforts and create a more concerted, focused effort across multiple community partners who realize we have a common interest in connecting the next generation with rewarding careers enabling them to be the community leaders of tomorrow.

The Product

Invite students, teachers and parents into your facilities to explore the careers you offer.

Visit schools to tell students and teachers about your own career pathway and the skills you rely on each day. Find ways to include young adults in your organization through job shadows or internships. Simply reaching out to your local school district to ask how you can get involved is a great start.

Academic and Career Planning is something we can all get behind. The Wisconsin Business World program and The Future Wisconsin Project are deeply engaged in connecting the classroom to the workplace. And parents and teachers want to give students the tools to discover rewarding careers, businesses want to hire quality employees and civic leaders want stable employment to support the services people desire and require in their community.

ACP will be a great addition to a well-rounded Wisconsin education and if we all get behind this effort, we will realize its full potential! BV Follow Steve on Twitter @wibusinessworld

Support the next generation of business leaders!

Wisconsin Business World is a program for high school students to learn about the real world of business and the opportunities available in Wisconsin. Become a corporate sponsor and support the registration of a high school student.

The result of the ACP process is the product each student creates which will help them see multiple routes to employment success after high school. The ACP is a student-led process to create a plan to identify talents, explore careers, and develop required skills.

Adults will be guides, but students are in the driver’s seat. It will take them beyond the classroom and include work experience, job exploration and certification programs.

An advantage of a student-led plan beginning in 6th grade is that by high school graduation, students will have six years of experience setting goals and utilizing the network of adults in their lives: parents, teachers, coaches and employers to help achieve their goals.

The students will rely on that experience throughout their careers.

Two summer programs are planned for 2016:

This is a call to action for employers and community partners to step up and play an active role in connecting with your schools.

Visit www.wibusinessworld.org to learn more.

Call to Action

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June 19–22, 2016 St. Norbert College De Pere

June 26–29, 2016 Edgewood College Madison

Contact Steve Benzschawel to become a sponsor – steve@wibusinessworld.org or (608) 258-3400

Apache Stainless Equipment Corporation

Gov. Walker joined the employees and members of the community in September to celebrate the 40th Anniversary of Apache Stainless Equipment Corporation and highlight the company’s investment and job growth in Wisconsin.

Founded in 1975, Apache Stainless Equipment Corporation originally manufactured large stainless steel tanks in Beaver Dam. Because of their continued growth, they opened a manufacturing facility in Plover in 1990 and acquired Mepaco, a stainless steel food equipment manufacturing facility in 1993. In 2000, they added an additional 54,000 square feet to their Beaver Damn facility and became a subsidiary of Dexter Apache Holdings, Inc. in 2006, allowing the company to become 100 percent employeeowned. Today, Apache employs 175 craftsmen, technicians, engineers and managers.

Recognizing excellence in manufacturing

28th Annual Awards Program Nominees Advanced Tooling, Inc. Alto-Shaam, Inc. Amerequip Corporation American Exchanger Services, Inc. Automation Components, Inc. Bell Laboratories, Inc. Broaster Company Colby Metal, Inc. Didion Milling, Inc. EmbedTek, LLC Energy Bank Inc. EVCO Plastics Felss Rotaform LLC Fox River Fiber Company, LLC Gamber-Johnson LLC Generac Power Systems, Inc. General Electric Global Finishing Solutions, LLC Grassland Dairy Products, Inc.

Hydro-Thermal Corporation Inpro Corporation Interior Systems, Inc. Inter-Med, Inc. Masters Gallery Foods, Inc. Mayville Engineering Company, Inc. Menasha Corporation Midwest Prototyping, LLC Mill Haven Foods, LLC Mortara Instrument, Inc. Nicolet Plastics, Inc. Robbins Manufacturing, Inc. S&S Cycle, Inc. Sign Effectz, Inc. Teel Plastics, Inc. Tenere Inc. Vets Plus, Inc. Vortex Tool Company, Inc. Witmer Industries Inc.

Winners will be announced at the Awards Banquet at The Pfister Hotel February 25, 2016.

Gov. Walker toured Apache’s Beaver Dam facility with Apache Stainless president Ed Paradowski, pictured at left, and learned about the equipment firsthand from some of Apache’s employees.

Visit www.wimoty.com to register.

The annual awards competition is sponsored by:

OEM Fabricators Wins Second Annual Flowers Family Foundation Business Achievement Award

The Wisconsin Business Achievement Award, presented by the Flowers Family Foundation, Inc., honors the outstanding economic and philanthropic contributions of individuals and entities engaged in free enterprise. The award includes a $60,000 donation to a nonprofit of the winning organization’s choosing.

OEM Fabricators, Inc. in Woodville received the award at October’s State of Wisconsin Business Event in Madison. OEM Fabricators, Inc. chose Success By 6, an organization in St. Croix Valley that supports early childhood development, to receive the monetary donation. Success By 6 will use the money to further develop the Family Friendly Workplace Certification project which is an initiative that engages the business community to institutionalize support for early childhood development.

S. Mark Tyler, President of OEM Fabricators, accepts the award from Rock Flowers of the Flowers Family Foundation

RULEMAKING Chris Reader WMC Director of Health & Human Resources Policy

Education Leadership

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ho is in charge of statewide public education policy in Wisconsin? The Legislature? The Governor? The Superintendent of Public Instruction? That question has initiated a constitutional showdown in Madison.

While this debate has been ongoing in Madison for decades, it was jumpstarted again in 2011 and has come to a head recently.

In 2011, Gov. Walker signed several transformational reform laws, the most prominent being the state employee collective bargaining reform bill commonly known as Act 10. Another significant reform measure he signed in 2011 was Act 21. Act 21 improved the administrative rulemaking process for state agencies in a way that injected more input from elected officials – a positive change from the perspective of taxpayers and employers. Prior to Act 21, when a law was passed by the Legislature and signed by the Governor, broad discretion was left to state agencies to develop the rules that implement the law. Too often, the rules developed by bureaucrats did not match legislative intent, but the process afforded lawmakers to challenge those rules was long and difficult.

law the duties and powers of agency heads, including the Superintendent.

WMC filed an amicus brief in Coyne v. Walker defending Act 21 and lawmakers’ ability to set the powers and duties of the Superintendent. We were joined in our brief by the Wisconsin Institute for Law and Liberty, Milwaukee Metropolitan Association of Commerce, School Choice Wisconsin, former Republican lawmaker Scott Jensen and former Democrat lawmaker Jason Fields. Oral arguments were held before the Supreme Court in November, 2015.

Beyond supporting Act 21, we also asked the Court to re-evaluate a similar case from 1996. In that case, lawmakers and then Governor Tommy Thompson created a state Department of Education within the Governor’s cabinet, separate from the Superintendent.

The education establishment sued and prevailed, leaving DPI as the only state agency overseeing public education. A ruling by the Supreme Court in Coyne v. Walker is expected in the first half of 2016.

Act 21 put elected officials, particularly the Governor, back in the driver’s seat on rulemaking. Under Act 21, before proposed rules While this disagreement may seem inconsequential, the of any agency become effective, they must be approved by the ramification of this debate is significant. K-12 education is the Governor. The result is that agencies need to stick to the legislative largest expenditure of each state budget and the rulemaking intent of the law; otherwise the rule is likely to be rejected by the oversight provided by Act 21 over DPI and all state Governor. With Act 21 in place, voters are able to agencies should be a welcomed step by taxpayers and hold elected officials accountable for costly and the regulated community.

“With Act 21 in place, burdensome rules, be they from the Department voters are able to hold elected Specific to education policy, Wisconsin needs of Natural Resources, the Department of officials accountable for costly better results than that which status quo has Transportation, or any other agency. achieved. Wisconsin has the worst achievement and burdensome rules.”

For one state agency, the Department of Public gap between white and black students in the Instruction (DPI), Act 21 was a bridge too far. The nation. In addition, our per-pupil cost is above average, driven by education establishment filed a lawsuit, Coyne v. Walker, contending Milwaukee schools spending more than most other schools in the it is unconstitutional for the Governor to have oversight on country, and employers are facing a skills gap and worker shortage rules promulgated by DPI, as they believe the Superintendent now and for the foreseeable future. As a state we need to fix those has final authority to manage public education. While it is true issues, but efforts at meaningful reform like expanding parental the Superintendent, currently Dr. Tony Evers, has the authority options are too often stonewalled by the education establishment. to manage public instruction under Article 10 of the state We need to reinvigorate the education system so students from Constitution, their argument misconstrues a second part of Article every corner of our state are prepared to succeed in tomorrow’s 10 which directly commands the Legislature to set the duties and careers. If Act 21 is upheld, lawmakers will be on stronger ground power of the Superintendent. to bring transformational reforms into the education policy arena Specifically, Article 10 declares “the supervision of public to address these vital issues. BV instruction shall be vested in a state superintendent and such Follow Chris on Twitter @ReaderWMC other officers as the legislature shall direct; and their qualifications, powers, duties and compensation shall be prescribed by law.” In establishing a rulemaking process, lawmakers are prescribing by 18

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TAXES Jason Culotta WMC Director of Tax & Transportation Policy

Improving Wisconsin’s Business Tax Ranking

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he Tax Foundation, a national group that tracks state and federal tax matters, recently released its annual State Business Tax Climate Index. Unfortunately, Wisconsin stubbornly remains at No. 43 on the index, the same position as the prior year and among the top ten worst state tax climates. After five years of Republican rule in Madison, how can this be?

Governor Walker and legislative Republicans have focused their tax-cutting policy on reducing property taxes, cutting the lower brackets of the personal income tax and adopting the Manufacturing and Agriculture Credit, a powerful incentive that rewards production occurring in Wisconsin. These efforts have reduced the tax burden for homeowners, those with middle and lower incomes, and manufacturers.

new top rate would put the state in a much more competitive position. Most businesses like LLCs and S-corporations pay the personal income tax. This change would generate economic growth across all industry sectors and save taxpayers $250 million annually.

• Eliminating the state’s alternative minimum tax (AMT) Wisconsin is one of the last six states with an AMT. Established to ensure the wealthy pay their “fair share,” the AMT has been hitting a growing number of middle-income Wisconsinites. Thankfully, the Legislature made changes taking effect in 2017 which will greatly diminish the negative impact of this tax. To fully repeal it at that point would reduce tax revenues by $10 million annually.

• Reducing the corporate income tax rate The Wisconsin Taxpayer Alliance recently uncovered that In 2015, the corporate income tax rates of Illinois and Rhode in 2013 Wisconsin dropped to No. 15 in the nation when Island dropped below Wisconsin’s flat 7.9 percent rate. By considering Census Bureau data comparing state and local taxes leaving our rate unchanged since 1972, Wisconsin as a percentage of personal income. As the is climbing in the corporate income tax “Wisconsin’s mix of high income relevant Census information is always rankings as every year other states reduce this reported about two years behind, the and property taxes and relatively low tax policies of the past few years have sales taxes ensures our state remains on rate. While a two-point reduction would be significant for the C-corporations which likely moved the state to 16th or the top ten list absent some additional pay this rate, a more modest approach of 17th position today. This is a welcome income tax reforms.” reducing the current rate to match the top development for our state’s high-tax bracket of the personal income tax at 7.65 percent reputation. would only “cost” the state $30 million annually and once again Even so, the Tax Foundation still considers Wisconsin among place us below Illinois’ rate. the top ten worst state business tax climates. Highly regarded by • Eliminate the state property tax business leaders across the nation, the Foundation’s index considers Though property taxes largely fund local governments, the state income taxes more significant to businesses than property or sales also accounts for less than 1 percent of these taxes through a taxes. So Wisconsin’s mix of high income and property taxes and levy for forestry purposes. This means Wisconsin is among the relatively low sales taxes ensures our state remains on the top ten only states that collects taxes on income, property and sales. list absent some additional income tax reforms.

Eliminating this tax would shift about $80 million annually The following policy changes would ensure Wisconsin from property tax and get Wisconsin out of the business of permanently drops off the top ten list: imposing a levy.

• Repealing the top personal income tax bracket While Wisconsin has made progress in reducing our tax burden, No other tax policy would be as effective as eliminating this our business tax climate will only be improved when the politically bracket. At 7.65 percent today, this top bracket was created by difficult, but economically beneficial, changes above are pursued Gov. Doyle in 2009 and has only been reduced by a tenth of a with vigor. BV percentage point since Republicans regained legislative control in 2010. The next tax bracket is 6.27 percent, which as the Follow Jason on Twitter @JGCulotta

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2016 PRED Flynn

Kampling

Gigante

King

Bailet

Conroy

Duffy

Wallace

Mayer

Christianson

Kamphuis

Boldt

DICTIONS CEOs Are Cautiously Optimistic about the New Year

By Mark Crawford

M

aking predictions about economic performance can always be a little risky. By the time federal and state agencies crunch numbers and release statistics, the results are almost obsolete considering the speed of business. Although these reports provide a broad perspective on economic issues, there are no better experts on what impacts the Wisconsin economy than our own “boots on the ground” CEOs. To get a deeper perspective on the Wisconsin economy in 2016, we asked 12 business leaders for their opinions on what the New Year will bring (no crystal balls were allowed).

Without question, the top concern in the informal survey is the workforce.

Although job growth remains strong and steady across the country, there aren’t enough qualified candidates to fill all job openings. A recent QTI survey of Wisconsin employers showed about 75 percent of Wisconsin companies in 2016 will face challenges in finding qualified workers to match their needs.

“The continued high rate of retirements, coupled with the steady rate of job creation, puts significant pressure on organizations seeking to hire, engage, and retain talent across all sectors,” says Matt Duffy, chief operating officer for QTI Human Resources & QTI Consulting in Madison.

“Just about everyone we work with is looking to hire qualified people,” adds David O. Christianson, CPA

and partner with Wipfli LLP in Milwaukee. “The shortage of skilled workers seems to affect employers across all industries. So, while most companies would respond that they expect to hire, they also expect to have an increasingly difficult time doing so.”

Because of these concerns, more companies are turning to staffing firms to fulfill their labor needs, especially companies that have never used (or even considered) hiring a staffing firm in the past. Many industries are in need of “The staffing industry has the potential to well-trained technical workers perform very well in 2016 and the recent shortage has been but we are also facing the same challenges in a major concern. having enough available workers,” says Scott Mayer, president of QPS Employment Group in Brookfield.

Key Business Sectors

Traditional/legacy industries and hightech/knowledge-based industries create an economic diversity that is essential for robust economic growth. In Wisconsin, the economy is driven by manufacturing. Job growth is, however, uneven across this sector.

Revenues are flat or slightly down in plastics/rubber, transportation equipment, chemicals, and petroleum products, a result of lower prices and higher inventories. Outside factors include a weak national economy and reduced foreign sales, in part the result of a strong U.S. dollar and struggling foreign economies.

Wisconsin Business Voice

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“Northeast Wisconsin seems particularly optimistic about sales growth, but the southeast just recorded its eighth straight month with a purchasing managers’ index (PMI) less than 50,” says Christianson. “Companies are running lean and there is a mixed sense of pessimism in the first quarter of 2016.”

Gary M. Gigante, CEO of Waupaca Foundry, agrees it could be a challenging year. “Our business will be flat to slightly down when compared to 2015,” he says. “The automotive market will remain strong. Commercial truck, agriculture, construction, and industrial markets will be down 5 to 10 percent. Foundries that are not involved in the automotive sector will be extremely slow.”

Healthcare is showing solid growth, thanks in part to the Affordable Care Act (ACA). The continued downward pressure on reimbursements from governmental and commercial payers is driving innovation and cost control in the industry. “We have been able to reduce our infrastructure costs through enhanced efficiency, lower supply costs and better coordination of care,” comments Dr. Jeffrey Bailet, co-president of Aurora Health Care Medical Group in Milwaukee. “In addition, we are on pace to recruit 180 physicians and over 200 advanced practice clinicians this year to meet growing patient need.”

The ACA is also driving advances in biomedicine that reduce healthcare costs and improve patient outcomes. Considerable research is being done on new methods for early detection of diseases which reduce the need for expensive and potentially dangerous diagnostic procedures, such colonoscopies. For example, Madison-based Exact Sciences recently won FDA approval for its Cologuard test, which detects 94 percent of Stage I and II colorectal cancers. The company is also developing a simple bloodbased screening test to detect lung cancer. “In 2015 we nearly doubled our Wisconsin-based workforce, from 250 to more than 450,” says Kevin Conroy, CEO for the company. “This year we will continue to grow our customer care center, lab team and billing division.”

Information technology (IT) – especially gaming and software development – is another strong sector in the state. EPIC Systems, based in Verona, is a global leader in electronic health records and other management systems. Skyward, a Stevens Point-based

company that manufactures administrative software packages for K-12 schools across the country, has enjoyed an annual mean employee growth of about 10 percent per year. “Right now we have 510 employees and plan to hire at least 52 new positions in 2016,” says CEO Cliff King. “We are also moving into our new headquarters this year.”

Investing in Technology

Spending capital on technology and equipment to improve efficiency and reduce operational cost is essential for staying competitive. “If you aren't investing in technology, you won't be able to stay in the game,” says Tom Boldt, CEO of The Boldt Company, a construction firm based in Appleton. “For us, mobile devices have increasingly important roles on our construction sites.

These and other advances in communication have significantly improved our project performance.”

Another sector that is investing heavily in mobile is banking, where more customers want to access their accounts through mobile and the Internet. They want mobile applications that match the pace of their lifestyles. “We invest tens of millions of dollars every year in technology solutions that improve the customer experience,” says Philip Flynn, president and CEO of Associated Banc-Corp in Green Bay. “This is one reason Associated grew its deposit market share in Wisconsin more than any other bank from July 2014 to June 2015.”

QPS Employment Group just completed a major website redesign, resulting in a mobile-friendly website with an easy-to-search job board for applicants. “We will continue to invest more money into social media like Facebook, LinkedIn and Twitter and other nontraditional avenues of recruiting,” states Mayer.

Healthcare continues to be transformed by technology, especially wireless/mobile applications that improve patient self-monitoring and disease management. For example, Fort HealthCare in Fort Atkinson has invested heavily in technology over the last few years to increase device connectivity and connectivity to other providers.

“We are in the initial phases of implementing our population health software program, which provides a new powerful tool for managing chronic conditions, as well as assisting in more complete

wellness coverage,” says president and CEO Michael Wallace.

In the manufacturing world, companies rely on advanced technology to improve product quality, throughput and speed to market, all while reducing total cost. Waupaca Foundry, for example, is replacing its current molding equipment with a new patented process that improves efficiency by up to 30 percent.

Many manufacturers are also spending more money on automation – not just to improve quality and throughput, but to also “man” the lines. “We will continue to invest in flexible automation to help offset skilled labor shortages,” indicates Robert Kamphuis, president and CEO of Mayville Engineering Company in Mayville.

Alliant Energy is also using advanced technology on multiple projects, including its $700-million modernization of its Riverside Energy Center in Beloit, which will utilize a state-of-the-art combined-cycle natural gas system. The company has also installed over 1,000 solar panels at its Madison headquarters and started construction on Wisconsin’s largest solar farm in Beloit. “These projects will help us gain insight into how best to integrate solar energy into our electric system,” says Patricia Kampling, president and CEO of Alliant Energy Corporation.

Moving Forward

Many companies, especially smaller privately owned companies, continue to struggle with the burdens brought on by regulations around healthcare, banking and finance, the environment, and the national debt, among other issues. As a result, entrepreneurship seems to be faltering – “in fact, since 2008, more companies have exited the American economy than entered it for the first time in our history,” says Christianson.

The outcomes for many legislative issues – such as the ACA, minimum wage, immigration reform, banking regulation, union issues, as well as potentially harmful presidential orders – depend on the 2016 elections. Cuts to government reimbursements continue to be a top concern for healthcare providers. Increasing the interest rate will have negative impacts for many businesses. At

the state level, top issues include worker’s compensation reform, access to statewide broadband, Department of Transportation funding and others.

Despite these uncertainties, most businesses plan to spend capital, hire more workers and explore more markets, including exporting to foreign countries. The Boldt Company is expanding its presence in other states, including Michigan and California.

QPS Employment Group is researching Colorado as a potential location for its services. Aurora Health Medical Group is investing $35 million to expand its behavioral and mental health services. Skyward, too, is expanding its product lines, providing an integrated municipal management suite that includes human resources, fiscal management, payroll, asset management and an employee portal.

Everyone seems to agree the top priority for 2016 is strengthening the labor pool and shrinking the skills gap. Companies must commit resources for recruiting, training and retaining their employees. To find the best talent, companies should engage candidates in more creative ways. For example, Duffy indicates proactive recruiting campaigns that engage passive talent are necessary to connect with untapped talent pools. “Organizations that are successful in hiring are selling much more than just the job – they are also including their brand, internal work culture, worklife balance and commitment to their community,” he says.

Kampling is pleased to see the collaboration among state agencies, academic institutions, and the private sector to improve the technical education of workers across the state. “Many industries are in need of well-trained technical workers and the recent shortage has been a major concern,” she says. “With collective effort, 2016 could be the year we see a record number of students entering technical training programs. This would help Wisconsin businesses be much more competitive in the future.” BV Crawford is a Madison-based freelance writer.

EacH yEar, ovEr 10,000 WiSconSin buSinESSES WorK WitH FocuS on EnErgy to USE ENERGY SMARTER Since 2012, Focus on Energy has brought in nearly $1 billion worth of net economic benefits to Wisconsin.

Saving Energy and Money for Wisconsin

visit focusonenergy.com/business

to Find MorE WayS to SavE and control your EnErgy uSE

Wisconsin Business Voice

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Fox Valley Technical College Helps Create State’s First Manufacturing Mall I t’s been 15 years since the Fox Valley Technical College Venture Center offered its first E-Seed entrepreneur training session to aspiring small business owners. Little did its director, Amy Pietsch, realize some of those entrepreneurs would end up together under one roof in the state’s first ever Manufacturing Mall.

The Venture Center’s national, train-the-trainer E-Seed offering was highlighted during Global Entrepreneur Week in November last year inside the brand new Manufacturing Mall. The facility comprises four businesses owned by three people with ties to Fox Valley Technical College. “I’ve seen two of these gentlemen start with welding and machine shops out of their garages through E-Seed, and now they’re part of a continuum of customized services in a 12,000 square-foot building in Neenah,” says Pietsch.

“What a success story, and more significantly, what a great way to serve as a one-stop shop for area manufacturers.”

Representatives from UEMSI/HTV in Menomonee Falls, Wisconsin, display television inspection systems during the dedication.

Grassroots Machinery manufactures components for both systems, which are sold worldwide.

The “mall” of services includes Grassroots Machining, Industrial Machine Services, J.W. Welding and Northern Compressor.

Grassroots owner Chuck Duginski, an E-Seed completer along with J. W. owner Jason Harold, has seen his workforce quadruple in five years and his clients are international, including one with ties to products that improve our national defense. “We share resources and many of the same customers to best serve the needs of today’s advanced manufacturing sector,” notes Duginski.

Nick Vander Heyden of Northern Compressor and Industrial Machine completed a few different apprenticeship training programs through Fox Valley Technical College over the years, reaffirming the college’s role in the success of the Manufacturing Mall beyond business start-up. All parties involved with the dedication used the opportunity to raise awareness about its model so other related businesses could benchmark their successes through this level of collaboration. BV Business owners in Neenah celebrate the dedication of the Wisconsin Manufacturing Mall.

www.atcllc.com

MOVING ENERGY INTO THE FUTURE Electricity powers our world. Each day, light switches are flipped, computers are powered up and factories hum with activity. Electricity enables automation, convenience, productivity and opportunity.

At American Transmission Co., we’re hard at work keeping the lights on and planning today for how the electric grid of our future will deliver reliable, affordable and environmentally responsible power.

Read more at www.atcllc.com/PowerForward 26

Focus on Manufacturing Breakfast February 26, 2016

7:00 - 9:00 a.m. • The Pfister Hotel, Milwaukee



The Focus on Manufacturing Breakfast will focus on manufacturing beyond Wisconsin’s borders. The keynote is Jay Timmons, CEO of the National Association of Manufacturers, and the panel includes all three Wisconsin manufacturing representatives of the U.S. Department of Commerce Manufacturing Council.

Keynote Speaker

Jay Timmons

President and CEO National Association of Manufacturers

Panel Participants

Jan Allman

President, CEO and General Manager Marinette Marine Corporation

Brad Crews

Chief Operating Officer NAFTA & President Agricultural Equipment Products Segment CNH Industrial America LLC

Irwin Shur

Vice President, General Counsel and Secretary Snap-on Incorporated

Registration

Regular Price: $75 WMC Member Discount: $60

www.wmc.org/focus

Major Sponsor

Silver Sponsor

Sponsorship opportunities available.

Wisconsin Business Voice

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MADE IN Kenall Manufacturing

10200 55th Street Kenosha, WI 53144 (262) 891-9700 Year Established: 1963 www.kenall.com

Headquartered in Kenosha and employing approximately 400 people, Kenall Lighting’s focus on sustainability, cost and energy-efficiency and intellectual property makes them one of the most well-respected independent lighting solution providers in the industry. Kenall’s Indigo-CleanTM, a continuous environmental disinfection technology, is a light fixture that uses LED technology to safely, automatically and continuously kill harmful bacteria within the environment. Indigo-CleanTM installs easily into any ceiling, continuously disinfecting and bolstering current cleaning protocols. Indigo-Clean’s continuous environmental disinfection technology kills harmful bacteria in the air, on hard and soft surfaces, 24/7.

Phillips-Medisize Phillips-Medisize is headquartered in Hudson and has a presence in 14 locations throughout the U.S. as well as Europe, Mexico, China, and the Netherlands. The company is a global leader in design, development and technology-driven manufacturing creating products for use in the medical device, pharmaceutical packaging and commercial markets. Phillips-Medisize manufactures hypertension therapy devices and cardiovascular hospital equipment along with other key products. Their expertise in the cardiovascular market meets quality standards and allows surgeons precision in the operating room. While cardiovascular patients rely on medical professionals to ensure proper healthcare, medical professionals rely on Phillips-Medisize.

Showcase your product in Wisconsin Business Voice Contact Alicia Bork, abork@wmc.org

1201 Hanley Road Hudson, WI 54016 (877) 508-0252 Year Established: 1964 www.phillipsmedisize.com

WISCONSIN Quincy Bioscience

301 S. Westfield Road #200 Madison, WI 53717 (608) 827-8000 Year Established: 2004 www.quincybioscience.com

To some, jellyfish are creatures to avoid in the water on vacation, but to Quincy Bioscience they are an aid in helping fight dementia-like mental health issues. Using apoaequorin, a protein originally found in jellyfish, Quincy Bioscience is responsible for Prevagen and many other products and technologies that support cognitive function and age-related health challenges. Headquartered in Madison with production facilities in Middleton, Quincy Bioscience provides customers with supplements to combat the mental health aging process. Their most popular calcium-binding protein-based product, Prevagen, can be found in CVS, Walgreens and many other health foods stores and pharmacies nationwide.

WiscoLift From air hoists to web slings, WiscoLift has the expertise to ensure the highest quality lifting products.

Founded in 1974 and headquartered in Greenville, WiscoLift makes it a priority to manufacture and supply customers with innovative, safe, and reliable products and services for any lifting purpose. WiscoLift manufactures Grade 100 alloy chain slings with 1-, 2-, 3-, and 4-legs and a wide variety of attachments. When it comes to Web Slings, the options are endless: flat and twisted eye and eye, endless, returned eye, triangle/triangle and triangle/ choker slings. They sell many standard configurations online and manufacture custom slings to any customer specifications. WiscoLift is a key manufacturer and supplier in the lifting industry and ensures their customers are not only safe, but productive.

W6396 Specialty Drive Greenville, WI 54942 (800) 242-3477 Year Established: 1974 www.wiscolift.com

MADE IN WISCONSIN EXPO September 9 -10, 2016

State Fair Park, Wauwatosa Register to exhibit and sell your products made with pride here in the Badger State!

www.madeinwisconsin.info

An Engineer’s Perspective – Spinning our Wheels

By Raj Sheth, PE

M

any opinions have been written and promoted by various people and organizations on the issue of our nation’s crumbling transportation system. Innumerable studies have been conducted on how to best fund our transportation network at federal and state levels.

Transportation Finance and Policy Commission, created by the State Legislature in the 2011-13 budget, as well as the Wisconsin Department of Transportation have conducted various studies, providing a number of funding options. We do not need more studies; we need action.

American Society of Civil Engineers, a technical society with no political agenda, also has graded our country’s transportation system including airports, ports, highways, bridges and transit as “D” in recent years. Wisconsin highways are worse than those in all neighboring states. In fact, a recent article in the Wisconsin State Journal quotes a federal study ranking Wisconsin as having the third worst highways in the country.

Our track record, as a nation and as a state, is one of inaction and neglect. The gas tax, used primarily for highway and transit networks, was last raised in 1993 at the federal level and was not indexed to inflation. Wisconsin made a political mistake ten years ago when it discontinued indexing the gas tax. The result has been chronic underfunding of transportation projects and a need for transfer of general funds to keep the highway trust funds solvent.

Past inaction has led us to this predicament and continued inaction will make matters worse. We need to move beyond simplistic, antitax sound bites and recognize transportation funding is actually good for the economy, good for Wisconsin and good for America.

The September issue of Wisconsin Taxpayer Magazine provided an annual report card on issues facing the state, ranging from economic strength to workforce readiness to social stability. Of the 23 issues noted, highway condition received the lowest grade of “D” from the non-partisan Wisconsin Taxpayers Alliance.

WMC suggestions for modest transportation user fee increases: • Raise the state’s gas tax by up to 5 cents per gallon • Boost the vehicle registration fee for autos and light trucks up to $25 annually

Wisconsin’s key industries of manufacturing, agriculture and tourism depend on a good transportation system to be efficient and profitable. Without a worldRecently more than a dozen states, including several of our class transportation system neighboring states, have developed (which we used to have a to fund their highways, “A federal study ranking ways generation ago), all aspects of mostly by increasing the gas tax.

Wisconsin as having the Wisconsin needs to select one or our economy suffer. The costs of lost time in traffic jams, third worst highways in the more of the options suggested accidents, increased delivery by the Wisconsin Department country.” time and vehicle deterioration of Transportation (see sidebar). from poor road surfaces – all of Whatever the funding mechanism, it these costs grow, while the decision must be indexed to inflation. We cannot afford to not have a worldon funding keeps getting delayed. class transportation system if we are to compete in the global economy. BV The need is identified. Our

political leaders are recognizing and discussing the need for funding. While this is a welcome development, it has become a political football both at the federal and state level. This is a huge mistake. We need to have an honest discussion about what we expect from our highways and other transportation systems, what it will take to maintain and improve existing facilities, and how to pay for them. The Wisconsin

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On the funding side, we must face reality. As the saying goes, “you get what you pay for.” I would also borrow from an old commercial and say, “you can pay me now or pay me later.” Every day our infrastructure is getting a little bit older, and while we delay our funding decisions, the cost of needed improvements grows.

Rajan Sheth, PE, is CEO of Mead & Hunt, Inc. He is also a member of the WMC board of directors and a Fellow of the American Society of Civil Engineers.

Annual Safety & Health Conference and Expo May 16-18, 2016

Kalahari Resort, Wisconsin Dells

Seminars Networking New Safety Products Professional Development Courses Track for Young Safety Professionals

Keynote Speakers Tuesday

Ross Bernstein The Champion's Code

Building Relationships through Life Lessons of Integrity and Accountability from the Sports World to the Business World

Wednesday Steve Benzschawel Generational Differences: Millennials at Work Helping Everyone Work Safely Across the Generations

Visit www.wisafetycouncil.org for more information and to register.

22nd Annual

WISCONSIN CORPORATE SAFETY Honoring leaders in our state’s business community for achieving excellence in safety & health.

Awards AWARD TIMELINE

Applications Available online January 1, 2016 Now easier than ever, the streamlined CSA application process can be fully completed online at www.wisafetycouncil.org

Applications Stages Phase I: Statistical Data Due January 29, 2016

The Awards Program is sponsored by:

Finalists Notified February 5, 2016 Phase II: Subjective Report Due March 4, 2016 Winners Notified April 12, 2016 Awards Presented May 17-18, 2016 during the 74th Annual Wisconsin Safety and Health Conference & Expo in Wisconsin Dells

CELEBRATING SAFETY IN WISCONSIN! Apply online at www.wisafetycouncil.org

Wisconsin Business Voice

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SAFETY EXCELLENCE Janie Ritter Director of Wisconsin Safety Council

New Year’s Resolution: Safety Benchmarking

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t the end of each year, many of us take the time to contemplate the success of our business, department, or individual goals. Often we ask what we learned from our efforts, and write down goals for the New Year. While this process is informal for most of us, a better way to measure your performance is through benchmarking. The process of comparing your business’ performance standard to some kind of objective standard is referred to as benchmarking. If your organization’s safety and health program is not already engaged in a benchmarking project, I challenge you to start one in 2016.

Benchmarking is one of the most effective tools businesses can use to improve their operations, and boost profitability and productivity. It is also an excellent way to improve or maintain your organization’s safety and health program. One of the biggest challenges in maintaining a successful safety and health program is complacency. The process of benchmarking enables companies to determine which of their processes and procedures could benefit most from improvement. It also helps show the areas these improvements might yield results and gauge how effective their improvement efforts are over time.

What to benchmark

Prioritize the list of areas you want to benchmark based on your high hazard and risk areas. Data from risk assessment, incident reports, safety audits and information derived from discussions with key, experienced employees can assist in identifying your priorities.

Take time to carefully consider which standards are most important to your company’s overall success.

Where you are

Identify the current level of performance in the selected area you choose to benchmark and the desired improvement in performance.

It may also be appropriate to use an audit and/or questionnaire approach to measure the current level of performance.

Choosing your partner(s)

In large organizations it may be appropriate to select partners both from within the organization, perhaps at a different geographical location (internal benchmarking) and from outside the organization (external benchmarking). Smaller organizations could select a partner company with assistance from associations, local chambers of commerce or the Wisconsin Safety Council.

Working with your internal and external partners

Successful safety and health benchmarking occurs with senior management commitment, employee participation, commitment to share information with others within and outside your organization, and when you have the right data and research to make meaningful 32

comparisons. This is all made easier with adequate planning and preparation. When choosing an outside partner for your benchmarking, confidentiality should be respected at all times. Goals should be set by the person or team responsible for its achievement, and leadership should agree the goal is important and appropriate time and resources will be allocated.

Using what you learn

The goal of any benchmarking exercise is to learn from other successful organizations, to learn more about your organization’s performance compared to your partners, and to take action to improve internal performance.

Your benchmarking plan should be “SMARTT”, that is:

Specific – Measurable – Attainable – Realistic – Trackable and – Timebound Specific. Your plan should be detailed, specifically addressing the goals you aim to achieve and your plan to achieve them.

Measurable. A goal is measurable when you can quantify it.

Establish base-line data and include a target/goal in which progress can be measured along the way. Examples of measurable goals answer questions like how much? How many? And how will you know when your goal is accomplished?

Attainable. Choose goals you expect can be reached. Goals can range from easy to challenging, and may need to allow for flexibility. If a goal can no longer be achieved it should be altered or discarded.

Relevant. Goals should be in line with your organization’s mission and vision.

Trackable. How will your progress be tracked or measured?

Time-bound. Goals need a start and end. Progress should be assessed along the journey. Placing time limits on completion will help you focus on their achievement.

Like any business plan, the results of your benchmarking exercise should include a list of recommendations, who is assigned to implement the recommendations, and a timeline and monitoring measurements for the implementation. BV

Follow WSC on Twitter @WISafetyCouncil

2016 Safety Training

The Wisconsin Safety Council, a division of WMC, is Wisconsin's leading provider of safety training and programming. WSC offers training throughout the year at locations across the state.

MILWAUKEE AREA SAFETY TRAINING

August 9

FOX VALLEY/GREEN BAY AREA SAFETY TRAINING

February 15-16

August 15-18

February 11

June 16

August 22-25

February 18

August 30

September 7

March 15-18

September 12

Confined Space, Train-the-Trainer (AM)

September 13

Lockout/Tagout, Train-the-Trainer (PM)

September 29

Safety Management Techniques (SMT)

October 11

OSHA 10-Hour Voluntary Compliance for General Industry Job Safety Analysis ( JSA) Creating a World Class Safety Culture

October 19

Coaching the Lift Truck Operator, Train-theTrainer

December 5-8

OSHA 30-Hour Voluntary Compliance for General Industry

MADISON AREA SAFETY TRAINING January 6

OSHA Construction Breakfast “Interior Building Safety”

January 18

MSHA/OSHA 8-Hour Refresher

January 25-28

Fundamentals of Industrial Hygiene (FIH)

February 22

MSHA/OSHA 8-Hour Refresher

February 23

Creating a World Class Safety Culture

March 8

RCRA Compliance for Hazardous Waste Generators Overview (AM)

March 8

Coaching the Emergency Vehicle Operator (CEVO): Ambulance and Fire Principles of Occupational Safety & Health (POSH) OSHA 30-Hour Voluntary Compliance for General Industry Ergonomics: Managing for Results

September 12

September 26-29 October 4

RCRA Compliance for Hazardous Waste Generators Overview (AM)

October 4

OSHA Construction Breakfast “Electric Safety Management”

April 11

Safety Inspections

April 18-21

Safety Training Methods (STM)

May 3

OSHA Construction Breakfast “Preplanning for Job Safety”

August 1-3

Instructor Development Course (IDC): First Aid/ CPE/AED

Effective Team Safety Safety Inspections

November 2-3

OSHA 10-Hour Voluntary Compliance for General Industry

February 9

October 18

Coaching the Lift Truck Operator, Train-theTrainer

November 7

Supervisor Development: Safety & Health Fundamentals

MSHA/OSHA 8-Hour Refresher

August 10

Coaching the Lift Truck Operator, Train-theTrainer

December 12

Effective Team Safety

May 16-17

March 22

Incident Investigation: A Root Cause Analysis

Conducting Effective Safety Training

Confined Space, Train-the-Trainer (AM) Lockout/Tagout, Train-the-Trainer (PM)

OSHA 30-Hour Voluntary Compliance for General Industry

WAUSAU/EAU CLAIRE AREA SAFETY TRAINING

October 10

WISCONSIN DELLS AREA SAFETY TRAINING

March 10

MSHA/OSHA 8-Hour Refresher

DOT Hazmat Transportation Refresher (PM)

DOT Hazmat Transportation Refresher (PM)

March 10

Coaching the Lift Truck Operator, Train-theTrainer

OSHA 10-Hour Voluntary Compliance Course for General Industry

May 16-18

74th Annual Safety & Health Conference/Expo

May 16

•Coaching the Lift Truck Operator, •Train-theTrainer •Effective Team Safety •Incident Investigation: Root Cause Analysis •Electrical Safety Compliance-NFPA 70E •Process Safety Management (PSM) •Confined Space Entry Training for Entrants/ Attendants/Supervisors

Chapter of

•Values-Based Safety Process •Energizing Your Ergonomics Training •Workplace Violence Prevention Programs •Leadership Through Learning

www.wisafetycouncil.org

•Respiratory Protection 10

Wisconsin Business Voice

33

Wisconsin’s Largest Export Destination Offers Opportunities for Export Growth

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isconsin exported $7.9 billion in manufactured goods and agricultural products to Canada in 2014 – accounting for more than one-third of all Wisconsin exports, more than the next eight Wisconsin export destinations combined.

International trade pathways between Wisconsin and Canada are well established and well traveled. The North American Free Trade Agreement (as well as the Trans-Pacific Partnership, whose negotiations have concluded but which has yet to be ratified by member states) eliminates most duties and tariffs, making exporting to Canada relatively simple and straightforward. With its geographic proximity and cultural similarity to the U.S., Canada is a logical first step for companies that are new to exporting.

Businesses seeking to grow their exports to Canada should keep in mind the market demands high-quality, innovative products and technologies – at least as sophisticated as what companies would produce for the U.S. market. Key sectors include natural resource extraction and processing, transportation equipment, chemicals, food products, wood and paper products and fish products.

However, Canada is a large country with a diversified economy that provides opportunity for almost every type of product or service.

Recognizing the potential for growth in exports to Canada, the Wisconsin Economic Development Corporation (WEDC) is leading a global trade venture to Canada from March 13-18, 2016, with stops in Winnipeg and Toronto.

Winnipeg was chosen as a destination because the economy of the surrounding province was among the strongest in Canada in 2015 and is forecast to lead all provinces in 2016. Manitoba is an oft-overlooked region in central Canada whose strengths synergize with Wisconsin’s; in fact, as of 2014, 15 percent of Wisconsin’s Canadian exports go to Manitoba. Processed foods and beverages account for the largest share of Manitoba’s manufactured goods.

Other important industries include industrial and electrical machinery, metal fabrication and the manufacturing of electrical, chemical and printed products, as well as mining in the north.

Manitoba is also known for its forest products industry, including furniture, doors, windows and cabinetry.

INTERNATIONAL GROWTH OPPORTUNITIES IN CANADA 2014 Top2014 Export TopCategories Export Categories to Canada to Canada

IndustrialIndustrial MachineryMachinery – 20% – 20% ElectricalElectrical MachineryMachinery – 8% – 8% Vehicles &Vehicles Parts –& 7% Parts – 7% Paper – 7% Paper – 7% Plastics –Plastics 5% – 5% Beverages Beverages – 4% – 4% Organic Chemicals Organic Chemicals – 4% – 4% Other – 45% Other – 45%

Population: 34.8 million (6x greater than WI)

2014 WI Exports: $7.9 billion

Area: 9.0 million sq km (58x larger than WI)

WI Export Rank: 1

GDP: $1.83 trillion (7x larger than WI)

2014 WI Imports: $4.5 billion

2014 Top2014 Import TopCategories Import Categories from Canada from Canada

Plastics –Plastics 10% – 10% Wood PulpWood – 10% Pulp – 10% IndustrialIndustrial MachineryMachinery – 8% – 8% Paper – 8% Paper – 8% Wood – 8% Wood – 8% Mineral Fuels Mineral – 4% Fuels – 4% Vehicles –Vehicles 4% – 4% Other – 48% Other – 48%

Key Industries: Natural Resource Extraction and Processing (including Minerals, Petroleum, Natural Gas), Transportation Equipment, Chemicals, Food Products, Wood and Paper Products, Fish Products

To learn more about growing your business in Canada, visit InWisconsin.com/Exporting or call 855-INWIBIZ (toll free).

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Located in Ontario – the largest provincial economy in Canada – Toronto is part of the highly integrated Great Lakes distribution and production network. The Ontario economy is rich and diversified, gained noticeable momentum in 2014 and is on track to log further acceleration for 2015 once numbers are available. Sectors of particular strength include aerospace, a $5.3 billion industry; automotive; food and beverage manufacturing; life sciences and medical technology; and water technology where Ontario is a global leader of research and development.

More than 60 percent of Wisconsin’s Canadian exports go to Ontario.

Companies participating in the WEDC trade venture will receive market intelligence from Wisconsin’s authorized trade representative in the market to help craft their Canadian export strategies. The trade office will arrange customized meetings with hand-picked local partners that suit each participating company’s specific objectives.

This program is designed to simplify and demystify exporting, and is offered at a subsidized rate to recognize that when Wisconsin companies grow their exports, the entire state benefits from the resulting economic growth. Companies across all sectors are encouraged to consider attending.

BV

Visit WEDC’s website InWisconsin.com/exporting for more information on exporting to Canada or other parts of the world. Visit InWisconsin.com/ canada2016 for more information on the trade venture to Canada.

Fueling Wisconsin’s Economic Engine A s I approach 60 days in my new role, I can confidently reaffirm the Wisconsin Economic Development Corporation’s (WEDC’s) commitment to our mission – “To advance and maximize opportunities in Wisconsin for businesses, communities and people to thrive in a globally competitive economy.”

Creating the right environment for economic vibrancy is a responsibility that extends well beyond WEDC’s walls. For this reason, our mission’s fulfillment draws upon the full strength of an extremely capable economic development network that includes powerful resources at the local and regional level. Equally important are the valuable perspectives and insights generously shared by educational institutions and trade groups statewide.

Our investments are designed to remove barriers, fulfill opportunities and attract investments that would not be feasible from a financial, competitive or timing perspective without public assistance. The top criteria we consider when assessing a project is the ROI it will deliver to the state.

So, what are some of the metrics we use to measure our effectiveness when it comes to the state’s economic development efforts? Developing and maintaining a positive business climate requires focused attention on all facets of the state’s economic output. That is why WEDC contracts often provide incentives to companies not only to create and retain jobs, but also to make capital investments, provide employee training and purchase goods from other Wisconsin companies.

A key component of WEDC’s success is the alignment between our programs and the critical drivers of the state’s economy. For this reason, the shorthand reference to WEDC as “Wisconsin’s job creation agency” falls far short of describing the breadth of WEDC’s work. It also inaccurately shifts the credit from the business leaders whose vision and strategies are truly responsible for creating and maintaining jobs in Wisconsin. WEDC’s role is much better described as, “Wisconsin’s lead economic development agency,” because our programs, whether administered directly or through our 600 economic development partners, help companies and communities maximize their potential.

In fiscal year 2015, WEDC and our contracted partners provided financial and operational assistance – from business planning to export strategy development – to more than 5,000 businesses. We also provided assistance to 103 communities to make sure they maintain the necessary infrastructure and amenities to attract and

retain strong businesses and the workforce they need to prosper. As a result of this collaboration and investments of time, knowledge and funds, we anticipate a total of 26,822 jobs will be directly impacted – jobs that have been, or will be, retained or newly created.

Keep in mind, it is not only our taxpayers’ money administered through WEDC doing this work.

In fiscal year 2015, WEDC achieved a leverage ratio of 9-to-1 on our investments ($9 of outside investment for every $1 of WEDC funds) across all of our financial awards, well above our annual goal of 3-to-1.

Another measure of our programs’ effectiveness is the total investment made in the projects where WEDC is involved. In fiscal year 2015, WEDC invested in contracted projects that will result in $1.2 billion in capital investments in Wisconsin with ripple effects that include, for example, new vendor relationships and strengthened retail opportunities. The result is a healthy return to the state through income taxes that result from increased economic activity. We project the state will draw an additional $78 million of income taxes from WEDC’s FY 2015 contracts alone.

These successes demonstrate the soundness of the economic development model developed and executed since WEDC was founded in 2011. Continuous process improvement is essential in any business, regardless of its age. To this end, we look forward to sharing the recommendations of the internationally recognized Center for Regional Economic Competitiveness (CREC), which was retained earlier this year to provide best-in-class recommendations to assist our ongoing efforts to streamline our operations as well as chart WEDC’s future course. This will be another positive step forward for WEDC and our commitment to building a strong and resilient Wisconsin economy. BV Mark R. Hogan is Secretary and CEO of the Wisconsin Economic Development Corporation

Wisconsin Business Voice

35

Packers Business Evolves and Grows

By Mark Murphy

S

ports fans, particularly those in Wisconsin, are familiar with the humble beginnings of the Green Bay Packers. A new city team was organized Aug. 11, 1919 in a second-floor editorial room at the Green Bay Press-Gazette with Curly Lambeau, a former Green Bay East football star, elected as its captain and George Calhoun, the Green Bay Press-Gazette’s city editor, named as manager. The two earlier had struck-up a conversation about forming a new team, gathered the players for the organizational meeting and later became regarded as the co-founders of the team that endures today.

construction industry. The number of visitors to Lambeau Field continues to increase, with nearly two million people annually taking in games, training camp, various Atrium businesses and many events.

Lambeau Field

Photo credit Brenda Spaude

Pro football in the 1920s certainly wasn’t the popular business it is today and the Packers had some early struggles, but the community was determined to have a football team and supported it in various ways, including five stock sales that significantly helped the franchise. The first three offerings (1923, ’35 and ’50) literally saved the team from bankruptcy and the latter two (1997, 2011) helped support expansions and renovations to Lambeau Field.

In 2000, that backing continued when citizens of Brown County approved a half-cent sales tax to support the redevelopment of Lambeau Field. The $295-million project enabled the iconic stadium to become a year-round destination. The results were immediate as the Packers, upon the strength of additional revenue streams, were able to move into the second quartile of NFL teams in revenue (ranking ninth in 2014) and deliver on their promise to the community and fans – turning profitability into the preservation of the franchise and stadium. The impact of the franchise on the community grew as well, with a 2010 AECOM study measuring the Packers’ economic impact at $282 million annually, an increase of more than $100 million a year. Since 2003, that’s more than $3.1 billion in total impact. Our charity impact also has increased, surpassing $6 million in the past year.

With Lambeau Field well positioned for the future, the organization has turned its sights to the area surrounding Lambeau Field with the development of the Titletown District, a destination area to be created on approximately 34 acres of land immediately west of the stadium. Titletown will maximize its unique location to attract more visitors, spur additional regional economic growth, offer new amenities to residents and complement the greater Green Bay area’s draw as an excellent location to live, work and play.

Initial tenants in the development that will open in fall of 2017 are LODGE KOHLER, a hotel built and managed by Kohler Co., a Bellin Health Sports Medicine Clinic and Hinterland Restaurant.

The community’s investment continues to return benefits, as the Packers’ firm financial footing put the organization in position to complete the recent five-year expansion and renovation (2011-15) to Lambeau Field and the Atrium without any public tax money.

Work on the $312-million project provided more than 3,000 jobs and more than $130 million in wages, a significant boost to the

The Packers are particularly excited about the community impact of Titletown’s planned 10-acre public plaza, a park-like setting with year-round, diverse programming that will feature fitness-related activities, cultural opportunities, versatile space for a variety of uses, a winter ice skating rink and team-inspired public art, in addition to festive gameday action.

With the popularity of the NFL remaining strong, the Packers are well positioned to forge a successful future. The greatest story in sports will continue to draw visitors to the region and drive economic development for the greater Green Bay area.BV Photo credit Green Bay Packers

Rendering of planned public plaza

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Mark Murphy is President and CEO of the Green Bay Packers

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BUSINESS DAY IN MADISON Wednesday, February 24, 2016

Monona Terrace Community & Convention Center, Madison Larry Kudlow Host of the Larry Kudlow Show on CNBC

Governor Scott Walker

Stephen Hayes Fox News contributor and columnist for The Weekly Standard

Ken Gronbach Demographer and futurist

Register today – www.businessdayinmadison.com 38

ENERGY Lucas Vebber WMC Director of Environmental & Energy Policy

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It’s Time to End Wisconsin’s Unnecessary Nuclear Moratorium

et’s jump back in time to the early 1980s: a time when the cold war was in full force and anti-nuclear protests were popping up across the country. In response, several states decided to enact nuclear moratorium laws that essentially prohibited the building of new nuclear power facilities. Despite the fact there were several nuclear facilities in the state operating safely, Wisconsin was one of the states that passed a nuclear power moratorium. When the law passed in 1983, existing facilities could continue operating but it virtually guaranteed no new nuclear generation would be built in Wisconsin.

in Wisconsin. One option some states are looking at is nuclear power. Under current law, however, thanks to the cold-war era moratorium, nuclear power cannot be a part of the conversation here in Wisconsin. We are forcing ourselves to comply with these oncoming federal mandates with one hand tied behind our back.

The Clean Power Plan is going to make energy more expensive and less reliable in Wisconsin. Because the EPA is forcing Wisconsin to reduce CO2 emissions from power plants, we will be forced to move away from coal power and fundamentally change the way we generate electricity. Wisconsin will need to replace reliable baseload coal power with intermittent and less reliable sources like wind and solar. If the sun stops shining or the wind stops blowing, energy is not generated. If we do not have the ability to ramp up generation at coal power plants to make up for these shortfalls, the lights will literally go out, which would be devastating for business

to power our economy, our state must at least be able to consider all options to determine the best way to meet our needs. Wisconsin needs to have a serious conversation about the future of electricity generation and unless we repeal the moratorium, nuclear energy cannot be a part of the conversation. It is time to repeal Wisconsin’s nuclear moratorium. BV

Thankfully here in Wisconsin we have leaders in the Legislature who are working to ensure all options are on the table. Rep. Kevin Petersen (R-Waupaca) and Sen. Frank Lasee (R-De Pere) have introduced legislation, Assembly Bill 384/Senate Bill 288, that would end Wisconsin’s nuclear moratorium and allow this Flash forward to today: Wisconsin’s energy infrastructure relies on technology to be part of the discussion for our state’s future coal and natural gas power plants. The Environmental Protection energy needs. In December, the Assembly Committee on Energy Agency (EPA) recently mandated states reduce and Utilities voted unanimously to approve CO2 emissions. To accomplish that goal, the the bill and send it to the full Assembly.

“Wisconsin will be forced to This is promising, and there is hope EPA set a specific target for each state to meet. This rule, known as the “Clean Power move away from coal power and the Legislature will finally repeal the Plan,” will require Wisconsin to reduce CO2 moratorium this session. emissions from power plants by more than fundamentally change the way we No one knows for sure what our state’s 40 percent. Currently Wisconsin generates generate electricity.” electrical infrastructure will look like in from coal about 60 percent of the power we the coming years. Nuclear power is no silver consume. Coal is an affordable and efficient energy bullet, and even if the moratorium is repealed, there’s no guarantee source that has been powering Wisconsin for generations, but it new nuclear power plants will be built in Wisconsin. Still, given does produce CO2. the mandates at the federal level and the need for reliable energy

Follow Lucas on Twitter @VebberWMC

Wisconsin Business Voice

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WMC at Home and on the Road

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WMC’s Kurt Bauer (left) spoke at a luncheon hosted by the United States Global Leadership Council on the importance of private sector international engagement.

He is pictured here (from left to right) with Wisconsin native K.T. McFarland of the Fox Business Network, General James T. Conway, retired Commandant of the U.S. Marine Corp., and Alan Petelinsek, CEO of Sussexbased Power Test, Inc.

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The Wisconsin Safety Council Conference Planning Committee met at the WMC headquarters in October to plan its 2016 Conference.

Gov. Walker met with WMC board members and staff during the State of Wisconsin Business event in Madison in October. Pictured here, left to right, are Cliff King, Skyward; Scott Mayer, QPS Employment; Gov. Walker; Bob Kamphuis, Mayville Engineering; and Scott Manley, WMC.

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Green Bay Packers president Mark Murphy presented to WMC members and guests during the State of Wisconsin Business event at Lambeau Field in October.

WMC recently welcomed Vincent Floreani (center), the Consul General of France in Chicago.

Pictured with Floreani are WMC’s Kurt Bauer and Katy Pettersen.

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Republican and Democrat legislative leaders spoke at WMC’s annual Government Relations Conference last fall. Pictured from left to right are WMC’s Chris Reader, Assembly Speaker Robin Vos (R-Burlington), Senate Majority Leader Scott Fitzgerald (R-Juneau), State Representative Gordon Hintz (D-Oshkosh), State Senator Janet Bewley (D-Mason), WMC’s Jason Culotta and Lucas Vebber.

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WMC Foundation president Jim Morgan presented The Future Wisconsin Project details to Gov. Walker and his cabinet at the Governor’s Northern Wisconsin Conference in Trego this December.

WMC director of tax and transportation Jason Culotta (left) met with German consul general Herbert Quelle at a meeting of the German-American Chamber of Commerce last fall.

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Effective Collaboration between Industry and Education

By Dr. Dan J. Thoma

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anufacturing is a vital component of the nation’s economic prosperity and growth – the industry provides 9 percent of jobs, 60 percent of exports, 12 percent of the gross domestic product (GDP) and 69 percent of private research and development spending in the United States. Because of the impact manufacturing has on our economy, advanced techniques and methods can accelerate a competitive advantage. Advanced manufacturing techniques can emanate from scientific discovery that is scaled-up for commercialization – or more commonly, they can originate from an industrially driven need for new solutions that provide an economic advantage. Both of those – the scientific "push" and the technological "pull" – will be the focus of efforts within the Grainger Institute.

In the institute, we will derive the scientific push for advanced manufacturing capabilities from new technologies and fundamental science. Specifically, our focus areas in advanced manufacturing will include accelerated materials discovery for new applications and discovery, computational science and engineering for prediction and for streamlining production lines, and cradle-to-cradle design schemes that allow us to reuse our resources, or use them more sustainably.

It is important to stress the relevance and importance of materials in advanced manufacturing strategies. For example, materials enable technology – and in fact, the ages of human existence (the Stone Age, Bronze Age, Iron Age, etc.) are defined by the materials that led to growth and prosperity during those eras.

Therefore, innovative methods for accelerated material discovery and application will enhance economic potential now and into the future.

Although scientific discoveries do make their way into commercial products, technology-driven needs are essential for robust collaborations among U.S. industries, companies and research universities. In the Grainger Institute, we will define this technological pull through direct collaborations with industry and through research consortia that bring together multiple businesses or industries.

We are developing "showcase" laboratories which will allow us to integrate fundamental technologies that cross disciplines and transition them into test beds and pilot operations at local industries. Stepwise integrations will help mature the technologies (and technology readiness levels) and accelerate their implementation into commercial products, and thus, their economic impact. Specifically, Grainger Institute for Engineering researchers will engage in activities that include additive manufacturing, smart manufacturing, digital manufacturing and supply chain optimization.

One very essential feature of the Grainger Institute is its efforts involve students at both the graduate and the undergraduate levels – and through the institute, our students will gain invaluable experience and a deeper understanding of how universities and industry can collaborate effectively.

A systematic approach that fosters basic science, discovery and knowledge is absolutely required as an educational component for graduatelevel research. Through the Grainger Institute, we can integrate fundamental research into collaborative efforts, enabling our faculty and graduate students to work in large, trans-disciplinary teams. This integrated approach to research allows us, then, to serve industry through a "showcase" capability that allows us to test-implement technologies into specific industrial needs.

The industrial collaborations provide not only an opportunity for developing a worker pipeline, but also enhancing economic growth through more a competitive regional environment.

In this environment, our undergraduate students also will have increased interactions with local industries as well as start-up opportunities.BV

Formed in June of 2014, the Grainger Institute for Engineering at the University of WisconsinMadison is positioned to capitalize on national thrusts in advanced manufacturing through trans-disciplinary, integrated interactions at a large-scale, technically diverse university. We will interact with both internal and external partners, providing us a flexible and agile ability to address existing or emerging challenges in our modern world. Initially, the institute's focus centers around materials and manufacturing.

Dan J. Thoma, PhD FASM is the Director of the Grainger Institute for Engineering at the University of Wisconsin – Madison

Wisconsin Business Voice

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SEEKING COMM Reaching Across the Aisle

By Congressman Mark Pocan (D – 2nd District)

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f you watched the news out of Washington lately, you may get the idea there are only 20 members in Congress constantly yelling past each other. While on the surface, we are seeing unprecedented levels of partisanship, especially with the looming 2016 Presidential race, it remains as important as ever to buck the trend of divisiveness and work across the aisle to get things done.

This was a lesson driven home for me during the 14 years I served in the Wisconsin State Assembly, where we had divided branches of government during much of that time.

On the Joint Finance Committee, I was both co-chair and a minority party member and there were only small periods of times where one party was in charge. It was there that nowSpeaker Robin Vos (R-Burlington) and I began collaborating on common goals. Even when we staunchly disagreed, we would still find time to talk. Former Rep. Scott Suder (R-Abbotsford) and I hammered out a corrections budget based on ideas we held in common and it ended up passing Joint Finance on a 16-0 vote.

Both Democrats and Republicans often want similar things for our country, but have different approaches to achieving those goals. Once you look past the most obvious differences and seek common ground, genuine progress can be made.

It is this belief that has led me to form productive relationships with Wisconsin’s Congressional delegation, specifically with Rep. Reid Ribble (R-8th District). I was an original cosponsor for Rep. Ribble’s biennial budgeting and oversight bill and even helped find other democratic sponsors.

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This year alone, we have both cosponsored significant bipartisan legislation dealing with redistricting reform, sentencing reform and email privacy. Compromise doesn’t mean compromising your principles. It simply means finding out what you have in common and getting those things done.

In general our state delegation works together well in the House and keeps open dialogue between offices, something Wisconsinites can be proud of.

Another area where I have found partners across the aisle is in the field of education. Earlier this year, Rep. Luke Messer (RIN) and I introduced a resolution to reauthorize the Federal Perkins Loans program. I later introduced legislation with Rep. Mike Bishop (R-MI) to reauthorize the program which then passed the House. Additionally, a bipartisan group of members from my committee of jurisdiction, Education and the Workforce, introduced legislation that would simplify the student financial aid process.

Just yesterday, I witnessed the President sign the Every Student Succeeds Act into law, which was supported by a broad coalition of members from both parties. While neither side got everything it wanted we were able to compromise and create a bill that puts students first and empowers teachers.

While a perfunctory view of the current political landscape in Washington may yield discouraging sentiments, a deeper dive reveals bipartisan work behind the scenes. It is important to remember that while Congress is still dysfunctional and partisan rancor is at an all-time high, cooperation and compromise should not be out of reach. BV U.S. Representative Mark Pocan represents Wisconsin’s 2nd Congressional District in the south central part of the state.

MON GROUND It is Possible to Disagree Without Being Disagreeable

By Congressman Reid Ribble (R – 8th District)

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came to Washington because I am concerned our country is on the wrong track. I am concerned my grandchildren's generation will not have the same bright future as our generation and the mountains of debt we are incurring may someday reach a point of no return. I came to Congress to take hard votes and do my very best to solve big problems on behalf of the people of northeastern Wisconsin. What I didn’t come to do is play political games.

This isn’t a new idea by any stretch of the imagination. Very soon after our nation was founded, Thomas Jefferson wrote extensively about one of his biggest concerns for the republic – factions. Over two hundred years later, Congress’s approval ratings hover near those of Darth Vader. One of the most commonly cited reasons is partisan gridlock.

I often say I am a republican with a small “r.” I believe deeply in small government, the intrinsic value of every single person, self-determination and the ability of the free market to create jobs and opportunity in a way the government will never be able to. I also believe men and women with different beliefs can love our country and want the best for its people just as much. Because of this, I often question the methods of my colleagues in Congress, but almost never their motives.

With that in mind, it seems crazy not to work together in areas where you can agree. Some would have you believe if you compromise you are really giving up on principle. That's nonsense. While my strong beliefs in our need for a balanced budget and support for the sanctity of life may not always translate into bipartisan support, we can and should work

together on getting our veterans the benefits they have earned, insisting that Congress do its work on time, and fighting gerrymandering. I am honored to have introduced legislation and pushed for reforms with colleagues from across the aisle like Wisconsin Representatives Mark Pocan (D – 2nd District) and Ron Kind (D – 3rd District), and many others from around the nation.

When people work together in good faith and put the American citizens first, amazing things can happen. I am extremely proud of the work we have done on legislation like the Biennial Budgeting and Enhanced Oversight Act of 2015, which would be the most significant budget reform in three decades and currently has 51 Democratic, along with 174 Republican, cosponsors. Representative Pocan and I have led a strong bipartisan push on the Long-Term SCORE Act, which would help us make smarter investments in things like healthcare to save huge amounts of money down the road. Representative Cooper, a Democrat from Tennessee, and I have been extremely active in the fight against disenfranchising voters through gerrymandering.

Benjamin Franklin said at the end of the Constitutional Convention in 1787 that our forefathers had created a republic – if we could keep it. As our politics become increasingly polarized, it is vital we are able to disagree without being disagreeable, that we question methods rather than motives and we remember at the end of the day we are all serving the greatest country in the world. We have an obligation to leave it better than when we started. BV U.S. Representative Reid Ribble represents Wisconsin’s 8th Congressional District in the northeast part of the state.

Wisconsin Business Voice

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CHAMBER CORNER

Business and Education: Working Together to Solve the Workforce Shortage

By Jim Ladwig

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s everyone knows, providing our employers with a capable, reliable and talented workforce is imperative to a healthy business climate. If our businesses don’t have a qualified workforce, they can’t fill vacancies or grow at their current location; unfortunately, they may be forced to move their operations to other regions. This is why the Racine Area Manufacturers and Commerce (RAMAC) is taking an active role in partnering with the Racine Unified School District (RUSD) in their efforts to transform students’ high school experience.

RUSD is in the process of creating academies and career pathways for all students. This will enable many students to directly enter the workforce and better prepare others for higher education.

Most of these pathways will coincide with high demand jobs in our community. We are currently partnering with the Department of Workforce Development on a local business survey to identify skills and jobs our employers are searching for. Some of the initial pathways already identified include information technology, manufacturing, automotive, culinary arts, health careers, engineering, business and marketing, and construction.

RAMAC recently partnered with RUSD on its professional development day for high school educators with an event called the Business Roundtables. Thanks to many of our chamber members, RUSD brought over 400 educators to 21 employers in our community. The educators had an opportunity to tour facilities and hold valuable discussions with local employers. These discussions included types of job openings and skills needed to qualify for the positions. It was a tremendous opportunity for educators

CHAMBER FUN FACT Eagle River, WI Recreation haven: that is what Eagle River is all about!

With the world’s largest chain of lakes –28 – Eagle River is a hot spot for trophy fishing. Known for musky, northern, walleye and bass, the chain of 28 lakes is also a mecca for pan fish and even has guides to help you navigate the water. Eagle River doesn’t just offer water sports – it is also the Snowmobile Capital of the World. Visiting the area in January? Be sure to check out the Annual Amsoil World Championship Snowmobile Derby Week and the Amsoil Snowmobile Derby World Championships!

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and employers to open the lines of communication and better understand the challenges facing one another.

After the roundtables, both the educators and businesses were surveyed on the event. One of the questions the educators were asked was, “What did you see or learn at the business visit that you could incorporate into your classroom?” The responses included the following: “Soft skills and proper writing, interview skills, and how to present yourself.”

“I learned many of the necessary skills students need to learn, mainly the soft skills. I can work on those starting Monday.”

“Soft skills are almost as, if not more, important than GPA.”

“The ability to think critically and problem-solve are of the utmost importance.”

As you can see this was extremely valuable to have our educators see and hear first-hand the skills set our employers require.

The educators were also asked to rate the professional development experience on a scale of one to five, with one being poor and five being excellent. The average rating from educators at RUSD’s three major high schools was 4.73. Once again, this demonstrates the high value our educators placed on their visits.

It wasn’t only beneficial to the educators; the area business partners were also surveyed. Some of the comments from our businesses included: “The teachers were open and we had a great time talking about what we can do together to make RUSD better in the future.”

“The teachers were just wonderful and so engaged in learning about the different opportunities in healthcare. It was an honor to be part of this wonderful transformation of our high schools.”

These comments exhibit that our employers also found significant value to the event.

In Racine County, RAMAC and others are partnering to transform high school education. We are working to ensure our community has a fully capable and employed workforce. As we have displayed, we can accomplish great things by working together. BV Jim Ladwig is President and CEO of Racine Area Manufacturers and Commerce

Planning Your next ConstruCtion ProjeCt?

Representing the interests of construction companies large and small, ABC of Wisconsin fights everyday to protect our cherished free enterprise system. We advocate for careers in the industry built on pride and accomplishment. And you can be assured our members’ projects are built on merit.

For high quality, a focus on safety & the most costeffective price, demand your next construction project is built by an ABC of Wisconsin member.

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