Wisconsin Business Voice October 2012 by Wisconsin Manufacturers & Commerce (WMC)

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October 2012: Issue 4

Official magazine of Wisconsin Manufacturers & Commerce

Getting a Grip on Healthcare

Inside: Healthcare: Best Practices & Policy Initiatives Celebrating Manufacturing Month in October Tommy Thompson & Tammy Baldwin: What's Best for Wisconsin?

Wisconsinâ&#x20AC;&#x2122;s National GOP Leaders Page 4

WISCONSIN

BUSINESS VOICE In this issue

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From the Editor Not in my lifetime has Wisconsin held such a prominent spot in national politics.



Who Broke the Economy?

Kurt R. Bauer, WMC’s President/CEO, dissects who is to blame for the Great Recession.

Wisconsin Leads the Nation

WMC’s Senior Vice President James Buchen applauds Wisconsin’s leaders in the national spotlight.

Legislative Voting Record & Working for Wisconsin Awards View the Legislative Voting Record from the 2011-12 session and see which legislators received an award their 75% or better voting record.

The Quotes Behind the Workforce Skills Gap WMC Foundation President Jim Morgan talks about the impetus for WMC’s involvement in solving the workforce paradox.

Step-up to the Job-Skill Challenge

This guest editorial from Todd Berry, President of the Wisconsin Taxpayers Alliance, talks about the skills shortage.

Affordable Care Act

Wisconsin is moving forward to implement the federal healthcare act – what that means for employers.

Looming Federal Tax Increases

WMC’s Director of Tax & Transportation Policy, Jason Culotta, details the federal tax increases that will take effect in January.

The head of the Republican National Committee, Reince Priebus, is a proud Wisconsin native. We have a governor who made international news because of his courage to restore frugality here in Wisconsin. We have a sitting U.S. Congressman on the Vice Presidential ticket, and we have a solid statesman in Senator Ron Johnson who has achieved national prominence in only two years. If Tommy Thompson wins the upcoming election, it will be the first time since 1957 that Wisconsin will have Republicans in both U.S. Senate seats. Regardless of the outcome in November, business leaders face challenges. I’m sure issues such as rising healthcare costs, taxes, employment concerns, and continued uncertainty keep many of you up at night.

Tailored Label Products tells the story of one of their most productive box makers.

The effects of the Affordable Care Act will not be fully known for quite some time, but we do know Wisconsin employers have been leading the way in developing best practice initiatives to control costs and help their employees live healthier lives and be more productive.

Wisconsin employers are leading the way in healthcare best practices. This month’s lead article features the issue of healthcare from the perspective of the providers, insurers and employers.

This edition of Business Voice focuses on healthcare – from both a policy, and a human perspective.

Collision Course for Higher Energy Prices

Scott Manley, WMC’s Director of Environmental & Energy Policy, breaks down the EPA Train Wreck.

Launching Youth with Disabilities into the Workplace

18 Getting a Grip on Healthcare 22 24

New Marketing Campaign for WEDC

26 28 29 30 34 36

Wisconsin Leading the Way in Healthcare Reform

Paul Jadin, CEO/Secretary of Wisconsin Economic Development Corporation introduces the new campaign to lure new businesses to Wisconsin.

Made in Wisconsin

This month’s Made in Wisconsin feature includes a small brush company supplying specialty brushes to more than 1,200 companies, the world’s most well-known lip balm and the company that makes survey markers for some of the most famous places on the globe.

Katy Ryder Pettersen Editor, Wisconsin Business Voice kpettersen@wmc.org

Rebecca Hogan, WMC’s Director of Health & Human Resource Policy, makes the case that Wisconsin has had it right all along when it comes to healthcare cost reform.

Ask the Board

WMC Board Member Dave Yanda, President/CEO of Lakeside Foods in Manitowoc, shares his thoughts on the effect of this summer’s drought.

Healthcare Best Practices

WMC has written a series of more than 25 healthcare best practices. This feature pulls out the key points from those papers.

Workplace Violence: Preventing the Unthinkable

Wisconsin Safety Council Director Janie Ritter shares tips to help employers prevent workplace violence incidents.

What’s Best for Wisconsin Businesses?

Candidates for U.S. Senate Tommy Thompson and Tammy Baldwin share their vision for what each will do for Wisconsin businesses if elected.

More to Madison than Politics

Greater Madison Chamber of Commerce retiring President Jennifer Alexander writes about the non-political side of Madison.

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. Send address changes to WMC, P.O. Box 352, Madison, WI 53701-0352. WMC's physical 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 Ryder Pettersen, Editor (kpettersen@wmc.org) Jane Sutter, Designer (jsutter@wmc.org)

Who Broke the Economy? Kurt R. Bauer, WMC President/CEO

o one trusts the ones who broke it to fix it.

Therefore, assigning blame as to which party’s policies were responsible for the Great Recession is critical to winning the 2012 presidential race and why the Obama Campaign has produced a very effective television ad featuring former President Bill Clinton. In the ad, Clinton says Mitt Romney and the Republicans want to return to “the policies that caused the problem in the first place.”

What’s interesting is neither Clinton nor the Democrats offer details about what specific policies they are talking about. Perhaps that’s for good reason because the historical record doesn’t support the charge.

Most economists say the recession was caused by the burst housing bubble. The bubble, in turn, was caused by a combination of low interest rates and intentionally relaxed underwriting standards by Fannie Mae and Freddie Mac, the Government Sponsored Entities (GSEs) chartered by Congress to buy mortgages from banks and other mortgage originators in what is called the secondary market.

Instead of encouraging people to achieve the American Dream by saving for a down payment and buying a modest “starter” home they could afford the monthly payments and upkeep on, government policies created a shortcut. Cheap money and easy credit would make home ownership accessible to people with lower incomes and/or less than perfect credit histories. The result was millions of newly “qualified” homebuyers flooded the market, inflating prices and creating a nationwide housing bubble that eventually led to the financial crisis of 2008.

In fairness, both political parties supported the idea of an “ownership society” and there is plenty of blame to go around, but it was Clinton who advanced the policies that can be directly traced to the cause of the Great Recession.

On September 30, 1999, The New York Times reported the move “will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans.” The article went on to say Fannie Mae “has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people....” When the first signs of what former Federal Reserve Chairman Alan Greenspan referred to as “froth” began to appear in the housing market, it was Democrats who were in denial.

Congressman Barney Frank (D-MA), then the ranking Democrat on the House Financial Services Committee and destined to become one of the principal authors of the Dodd-Frank Act of 2010, said in 2003 that critics were exaggerating “a threat of safety and soundness.” He called Fannie and Freddie “fundamentally sound financially” and accused the Bush Administration, which was pushing GSE reform, of conjuring “up the possibility of serious financial losses to the Treasury, which I don’t see.” (As of July, taxpayers have pumped $183.8 billion into Fannie and Freddie since 2008.)

Frank wasn’t alone. Other prominent Democrats in Congress, including Senator Charles Schumer (D-NY), now the number two Democrat in the U.S. Senate, and Congresswoman Maxine Waters (D-CA) also rejected calls to reverse course on the misguided cheap money/easy credit approach to expanding homeownership. Short memories have helped Clinton, Obama and the Democrats get away with their false narrative that it was actually unspecified Republican policies that ruined the economy. The 2008 election helped as well. It was a Democratic landslide because voters blamed George W. Bush for the crisis if for no other reason than that he was president when the near collapse occurred.

Victors get to write history and ironically, once in control of the White House and both houses of Congress, it was Democrats who also got to try and fix what they helped break. BV

In 1999, Clinton signed into law the Gramm-Leach-Bliley Act, which many accuse of loosening the Depressionera Glass-Steagall Act financial reforms. That same year, Clinton pressured Fannie Mae to ease credit requirements on loans that the GSE purchased from mortgage lenders.

Follow Kurt on Twitter @Kurt_R_Bauer 2

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Wisconsin Leads the Nation By James A. Buchen, WMC Senior Vice President of Government Relations

n a remarkable series of events, Wisconsin’s top political leaders have become some of our nation’s top political leaders and they intend to lead our county back to fiscal sanity and economic prosperity. They are bringing Wisconsin values and Wisconsin-tested fiscal and economic policies to bear in solving some of the nation’s most intractable problems – crushing deficits and protracted unemployment. And the country is indeed fortunate to have them burst onto the national stage at this most challenging moment in our nation’s history. The list of Wisconsin-bred national leaders includes…

Governor Scott Walker

The national focus on Governor Walker’s efforts to balance our state budget and reform public sector collective bargaining laws was sharpened when he decisively won a contentious recall election. The recall became something of a national referendum on fiscal policy and a triumph for the proposition that the cost of government can be reduced without gutting essential services. Walker’s principled leadership, bold policy agenda and impressive results have established him as a role model not only for other governors but our national leaders as well.

Congressman/Vice Presidential Candidate Paul Ryan

Congressman Ryan firmly established himself as a national leader when he emerged as the principle architect of the GOP plans to balance the budget and reform Medicaid and other entitlement programs. His selection as Mitt Romney’s Vice Presidential running mate has served to further elevate the stature of his policy proposals and broaden the audience for his message. Few politicians in our nation’s history have proven to be as conversant in the arcane details of budgetary policy or as able to communicate those issues as clearly and effectively to the body politic. Clearly his selection strengthens the GOP’s national ticket.

U.S. Senator Ron Johnson

With his upset victory over Russ Feingold, Senator Johnson became only the second Republican elected to the U.S. Senate from Wisconsin in the last 50 years and is the only manufacturer currently serving in the Senate.

Since his election in 2010, Johnson quickly established himself as an expert on one of the principle issues of our time – the federal deficit. His in-depth understanding of the complexities of the federal budget lead Senate leadership to take the unusual step of appointing the freshman Senator to both the Senate Appropriations Committee and the Budget Committee where he has continued to effectively champion the issue of deficit reduction. His efforts have gained the attention of the national media where he has become a regular guest on various news talk shows. He has positioned himself to play a leading role in any deficit reduction effort in the next session of congress.

Former Governor/U.S. Senate Candidate Tommy Thompson Governor Thompson entered the U.S. Senate race against Tammy Baldwin as a well-respected national leader with an

impressive record of accomplishment. As the longest serving Governor in Wisconsin history he left an indelible mark on our state. His initiative in the areas of welfare reform, school choice and tax reform became models for other states as well as the federal government. Thompson’s appointment to lead the massive U.S. Department of Health and Social Services under George W. Bush propelled him onto the national stage. The first-hand experience he gained as Governor, in administering federal programs such as Medicaid, gave him valuable insight into how these programs could be made more effective and efficient. More recently his success as a private businessman rounds out his resume and probably makes Governor Thompson the most qualified person to ever run for the U.S. Senate.

Republican Party Chairman Reince Priebus

As chairman of the Republican Party Reince Priebus played a key leadership role that helped set the stage for Wisconsin’s rise to national prominence. He inherited a massive deficit from his predecessor and quickly turned around the Party’s fortunes, setting fundraising records in the process. His efforts have put the Republican Party in a position to win the White House and the U.S. Senate and lead the nation for the next four years. The common trait of these uncommon leaders is that they have the political courage to pursue policy based on fundamental principles. In a refreshing change from the norm they make decisions based on core beliefs rather than political expediency. In short, they stand for something. Voters, weary of politicians who are long on rhetoric but can’t or won’t deliver on promises, are responding to Wisconsin’s new leaders. While they may not always agree with the policy choices, voters do appreciate the fact that these new leaders stand for something and are willing to act on their convictions. There is much at stake in the November elections. Voters have a clear choice as to the future of our country. Fortunately, Wisconsin is leading the way with leaders that have concrete solutions to our nation’s problems, many of which have been successfully tested right here in our state. With Wisconsin leading the nation there is hope for the future. BV

2012Awards Honoring Manufacturing Excellence in Wisconsin

2012 nomination forms available online. www.wimoty.com The annual awards competition is sponsored by:

Legislative Voting Record

We are pleased to present the 2011-12 Legislative Voting record, WMC’s biennial business issue scorecard for the Wisconsin state Legislature. This report is designed to help the business community see how individual members of the legislature voted on key issues aﬀecting the business climate in Wisconsin.

The 2011-12 legislative session was historic in many ways. The upward spiral of spending and taxes was reversed; the state’s long-term structural deficit was eliminated; a solid foundation for responsible budgeting in the future was established and perhaps, most significantly, eﬀorts to improve the state’s business climate took a quantum leap forward. The legislature adopted sweeping legal reforms, comprehensive regulatory reforms and targeted business tax cuts that will help put Wisconsin on a path to robust economic growth and job creation in the years ahead. The WMC lobbying team worked on 159 separate pieces of legislation during the session. Many of these bills originated as recommendations from WMC members who serve on our various policy committees and were developed by our in-house team of attorneys and policy experts.

Senate

Carpenter (D-3) Coggs (D-6) Cowles (R-2) Cullen (D-15) Darling (R-8) Ellis (R-19) Erpenbach (D-27) Fitzgerald (R-13) Galloway (R-29)

Assembly

26% 32% 96% 27% 100% 100% 27% 100% 96%

August (R-32) 96% Ballweg (R-41) 100% Barca (D-64) 30% Berceau (D-76) 4% Bernard-Schaber (D-57) 25% Bernier (R-68) 100% Bewley (D-74) 22% Bies (R-1) 100% Billings (D-95) 40% Brooks (R-50) 100% Clark (D-42) 23% Coggs (D-10) 22% Craig (R-83) 91% Cullen (D-13) 33% Danou (D-91) 29% Doyle (D-94) 35% Endsley (R-26) 100% Farrow (R-98) 100% Fields (D-11) 17% Fitzgerald (R-39) 100% Grigsby (D-18) 6% Hebl (D-46) 18% Hintz (D-54) 29% Honadel (R-21) 100% Hulsey (D-77) 22% Jacque (R-2) 96% Jorgensen (D-37) 33% Kapenga (R-33) 96% Kaufert (R-55) 96% Kerkman (R-66) 100%

The full report is available on WMC’s website, www. wmc.org. Click on Government Issues & Policy at the top of the homepage, then click Legislative Voting Records.

Grothman (R-20) Hansen (D-30) Harsdorf (R-10) Holperin (D-12) Jauch (D-25) Kedzie (R-11) King (D-18) Larson (D-7) Lasee (R-1)

100% 35% 100% 39 % 22% 100% 45% 22% 100%

Lassa (D-24) Lazich (R-28) Leibham (R-9) Miller (D-16) Moulton (R-23) Olsen (R-14) Risser (D-26) Schultz (R-17) Shilling (D-32)

29% 100% 100% 22% 100% 100% 17% 88% 50%

Taylor (D-4) Vinehout (D-31) Vukmir (R-5) Wanggaard (R-21) Wirch (D-22) Zipperer (R-33)

Kessler (D-12) Kestell (R-27) Kleefisch (R-38) Klenke (R-88) Knilans (R-44) Knodl (R-24) Knudson (R-30) Kooyenga (R-14) Kramer (R-97) Krug (R-72) Krusick (D-7) Kuglitsch (R-84) Larson (R-67) LeMahieu (R-59) Litjens (R-56) Loudenbeck (R-45) Marklein (R-51) Mason (D-62) Meyer (R-34) Milroy (D-73) Molepske (D-71) Mursau (R-36) Murtha (R-29) Nass (R-31) Nerison (R-96) Nygren (R-89) Ott, A. (R-3) Ott, J. (R-23) Pasch (D-22) Petersen (R-40)

20% 100% 100% 100% 100% 96% 100% 100% 96% 100% 41% 100% 96% 100% 100% 100% 100% 24% 100% 28% 43% 100% 100% 96% 96% 100% 100% 96% 19% 96%

Petrowski (R-86) Petryk (R-93) Pocan (D-78) Pope-Roberts (D-79) Pridemore (R-99) Radcliffe (D-92) Richards (D-19) Ringhand (D-80) Ripp (R-47) Rivard (R-75) Roys (D-81) Seidel (D-85) Severson (R-28) Sinicki (D-20) Spanbauer (R-53) Staskunas (D-15) Steinbrink (D-65) Steineke (R-5) Stone (R-82) Strachota (R-58) Stroebel (R-60) Suder (R-69) Tauchen (R-6) Taylor (D-48) Thiesfeldt (R-52) Tiffany (R-35) Toles (D-17) Tranel (R-49) Turner (D-61) VanRoy (R-90)

100% 100% 14% 16% 96% 42% 21% 19% 100 % 100% 15% 26% 96% 32% 93% 40% 28% 100% 100% 100% 91% 100% 100% 29% 100% 100% 15% 96% 26% 100%

Vos (R-63) Vruwink (D-70) Weininger (R-4) Williams (R-87) Wynn (R-43) Young (D-16) Zimarripa (D-8) Zepnick (D-9) Ziegelbauer (I-25)

17% 30% 96% 100% 23% 96%

100% 41% 100% 100% 96% 30% 19% 26% 92%

WMC does not track Congressional voting records but the U.S. Chamber does. Here is the Wisconsin delegation’s voting record from the 2011 Session of the 112th Congress. Ryan (R) – 100% Baldwin (D) – 13% Kind (D) – 31% Moore (D) – 13% Sensenbrenner (R) – 94% Petri (R) – 94% Duffy (R) – 100% Ribble (R) – 100% For more information visit www.uschamber.com

Working for Wisconsin Award Winners

Senate

Rob Cowles-Green Bay Alberta Darling-River Hills Michael Ellis-Neenah Scott Fitzgerald-Juneau Pam Galloway-Wausau Glenn Grothman-West Bend Sheila Harsdorf-River Falls Neal Kedzie-Elkhorn Frank Lasee-DePere

Mary Lazich-New Berlin Joe Leibham-Sheboygan Terry Moulton-Chippewa Falls Luther Olsen-Ripon Dale Schultz-Richland Center Leah Vukmir-Wauwatosa Van Wanggaard-Racine Rich Zipperer-Pewaukee

Assembly Tyler August-Lake Geneva Joan Ballweg-Markesan Kathy Bernier-Chippewa Falls Garey Bies-Sister Bay Ed Brooks-Reedsburg David Craig-Big Bend Mike Endsley-Sheboygan Paul Farrow-Pewaukee Jeff Fitzgerald-Horicon Mark Honadel-South Milwaukee Andre Jacque-Bellevue Chris Kapenga-Delafield Dean Kaufert-Neenah Samantha Kerkman-Powers Lake Steve Kestell-Elkhart Lake Joel Kleefisch-Oconomowoc John Klenke-Green Bay Joe Knilans-Janesville Dan Knodl-Germantown Dean Knudson-Hudson Dale Kooyenga-Brookfield Bill Kramer-Waukesha Scott Krug-Wisconsin Rapids Mike Kuglitsch-New Berlin Tom Larson-Colfax Dan LeMahieu-Cascade Michelle Litjens-Oshkosh Amy Loudenbeck-Clinton Howard Marklein-Spring Green Dan Meyer-Eagle River

Jeff Mursau-Crivitz John Murtha-Baldwin Stephen Nass-Whitewater Lee Nerison-Westby John Nygren-Marinette Al Ott-Forest Junction Jim Ott-Mequon Kevin Petersen-Waupaca Jerry Petrowski-Marathon Warren Petryk-Eleva Don Pridemore-Hartford Keith Ripp-Lodi Roger Rivard-Rice Lake Erik Severson-Star Prairie Dick Spanbauer-Oshkosh Jim Steineke-Kaukauna Jeff Stone-Greendale Pat Strachota-West Bend Duey Stroebel-Saukville Scott Suder-Abbotsford Gary Tauchen-Bonduel Jeremy Thiesfeldt-Fond du Lac Tom Tiffany-Hazelhurst Travis Tranel-Cuba City Karl Van Roy-Green Bay Robin Vos-Burlington Chad Weininger-Green Bay Mary Williams-Medford Evan Wynn-Whitewater Bob Ziegelbauer-Manitowoc

E C R O F K R O W Changing the Dialogue

Selling Manufacturing One Conversation at a Time By Jim Morgan, WMC Foundation President careers and companies mean to Wisconsin. And before the financial, healthcare, energy, legal or transportation industries get upset, I can make a pretty strong argument that the citizenry is at least aware that you exist and values what you do. But manufacturing? Not a clue.

hy do parents speak with great pride about their 4-year university-bound children, but when discussing their technical college student often precede the comment with “he’s just attending tech school”? Why do we only care about K-12 system measurements that revolve around 4-year institutions? Why is there outrage if an advanced placement course is cut, but silence as many career and technical education departments die on the vine?

Why do so many consider a job in manufacturing not as “prestigious” as a job in a cubicle? Why aren’t we as concerned about lifetime employment as we are about lifetime education?

Why do we think the expectations of students entering the Wisconsin Technical College System are lower than the University of Wisconsin System? Why do so many value manufacturing jobs… for someone else’s children?

I am guessing those questions hit a nerve for anyone following the workforce paradox in Wisconsin. What has amazed me more than anything else during the past 12 months of preaching the value of manufacturing and manufacturing jobs is the complete lack of understanding of what these 8

In addressing the workforce paradox, WMC and the WMC Foundation set out a few goals 12 months ago:

• Raise the awareness of manufacturing • Improve the image of manufacturing • Challenge people’s perceptions of manufacturing

• Celebrate the value of manufacturing

A quick summary of recent articles covering WMC events and presentations indicates we are making progress: “Manufacturing is not a dirty word – nor is it an industry for the uneducated.” - Daily Tribune, Wisconsin Rapids

“Many parents saw factory jobs disappearing from Rock County a few years ago and became convinced that manufacturing as a career path is dead. On this Labor Day weekend, however, we’re here to tell you that notion is wrong.” - The

“To help close the skills gap, companies across the state are adopting strategies to get high school students interested in manufacturing-related jobs.” - La Crosse Tribune

Progress!

And now, October has been declared “Manufacturing Month” and it will be another opportunity to educate. That will be followed by WMC Foundation-led regional sessions offering solutions and best practices to help local communities continue to ensure they are providing quality education and meeting the needs of the workforce. The journey continues. In the end, competitiveness is what provides business with an advantage. Wisconsin, Germany, Green Bay, Illinois, China, Prairie du Chien – everyone has a workforce problem. More than any other issue, the country/state/ community that can offer workforce solutions will win. My money is on Wisconsin. BV Follow Jim on Twitter @JimMorgan1960

Janesville Gazette

“Last year, 47 hourly workers at Strohwig Industries (each) took home more than $100,000.” - The

Reporter, Fond du Lac

“People don’t understand we are still employing 430,000 in manufacturing in this state.” - Green Bay Press-Gazette

Employers, community leaders and educators gathered at WMC this summer to discuss the workforce paradox.

Celebrate Manufacturing Month in October

Celebrate

Manufacturing Month in October Visit www.wimanufacturingmonth.org Find resources available to manufacturers, community leaders and elected officials • Dates and locations of many tours and events happening throughout the month • Links to best practices from employers around the state • Top 10 ways to get involved • Toolkits for hosting tours • Links to Youth Apprenticeship programs Sign up today for the Manufacturing Month weekly e-newsletter; email Jim Morgan at jmorgan@wmc.org and

place the word Newsletter in the subject line.

Time to Step Up to the Job-Skill Challenge By Todd A. Berry, President, Wisconsin Taxpayers Alliance

eporters, business leaders, and researchers – almost everyone everywhere, both here and abroad – seem surprised and understandably troubled by the jobs-and-skills mismatch. If there is a “hot” topic in the public arena, this is it: Employers complain they are unable to find skilled workers despite stubbornly high unemployment rates.

There is little need to review the problem or recommended solutions; they’re ubiquitous. Consulting firms and think tanks have been cranking out reports on the topic for years. Closer to home, former Bucyrus Erie CEO Tim Sullivan recently shared 125 pages of his thoughts with the governor, and WMC staff have been documenting the challenge. Consensus on causes is broad, disagreement coming only from a few on the left who see higher wages as a panacea. Factors usually cited include demographic shifts, constant technical progress, cultural and attitudinal biases, poor or outdated market information, and inertia in both education and government.

What strikes me most about the skill gap is that few think about it as a permanent phenomenon. Yet, since the industrial age began, we have lived through economic cycles of jobs gained and lost. Add technological change, economic competition, the rigidity of most societal institutions – and a dash of human inertia – and you have a recipe for recurring job-skill mismatch and joblessness.

The only thing new and different about today is the pace and intensity of change and competition. Both are accelerating and global – and far less forgiving. Moore’s law first advanced almost 50 years ago predicted that transistor performance would double every two years, a prediction that has proved true and applies to other forms of technology. 10

So, yes, we have a skill gap, and we need to make big changes fast in public education and training, cultural attitudes, and business planning. But that is not enough. We must institutionalize processes that anticipate and accommodate rapid, unceasing change – and not just respond to it. Unfortunately, prospects are not bright for quick and wholesale change in state government. The legislative branch is near dysfunction. The executive branch has no cabinet-level appointee overseeing all education and training, and the state superintendent has a bully pulpit but little more.

The education sector is balkanized and inherently conservative. K-12 education continues to operate on a century-old industrial model, and universities are driven by siloed academic departments rooted in medieval Europe. The focus of technical colleges has been diffused, some argue, by remediation, adult enrichment, “mission creep,” and college transfer programs. Like it or not, Wisconsin employers cannot afford to wait for government and education. Working individually, in industrial clusters, through trade associations, and collaboratively with the other sectors, they are going to have to step up and drive the reform needed, if we are to put in place processes that anticipate and address the job-skill paradox.

Profitability, growth, and shareholder return depend on attracting and maintaining a skilled workforce, and that means business has to drive change. Suggesting it is necessary but not sufficient. Company time, money, and effort are going to have to be spent in a number of areas, including:

• Correcting rampant societal misperception of manufacturing (and the private sector in general);

• Providing families, journalists, and educators with on-the-floor knowledge of the advanced and innovative nature of manufacturing and production;

• Adjusting teacher, family, and media preoccupation with four-year degrees;

• Redesigning baccalaureate programs (and the institutional structures that go with them) to provide interdisciplinary alternatives to narrow majors by combining essential liberal arts education with technical or business competencies;

• Building new school-to-work pathways that include, among others, student “coop” learning, senioryear job experiences, and company mentoring; and • Creating and making permanent private-private and private-public consortia that assess and anticipate technological change and predict future skill needs.

More profound reforms could also be pursued, including widespread adoption of substantive apprenticeship alternatives to traditional in-class education; in-plant charter schools; or on-site, employersponsored certificate and degree programs. More far-reaching would be rethinking the organization and financing of postsecondary education. Imagine, for example, some technical college “districts” funded by payroll taxes or fees with employers ultimately responsible for program authorization and resource allocation. Needless to say, it’s time for everyone to open their minds and get to work. BV Todd A. Berry, President, Wisconsin Taxpayers Alliance. He can be reached at (608) 241-9789

Employers to Continue Healthcare Reform Implementation as Usual By John Barlament & Alexis Backs, Quarles & Brady LLP

n June 29, 2012, in a 5-4 decision, the U.S. Supreme Court upheld the healthcare reform law’s “individual mandate,” which requires almost all U.S. citizens to have health insurance by January 1, 2014 or pay a penalty. The main opinion was written by Chief Justice John Roberts, who began by stating that the individual mandate exceeds Congress’s power to regulate commerce under the Commerce Clause. While four other Justices agreed with that conclusion, which would constitute a majority, a different majority upheld the individual mandate based on an independent ground - the government’s backup argument - that is, the mandate is within the taxing power of Congress. No matter how the Patient Protection and Affordable Care Act’s (ACA) individual mandate passed constitutional muster, the end result for employers is the same. The Supreme Court’s decision provides clarity for employers and their group health plans. Because the Court found the individual mandate to be constitutional, the entire ACA stands with respect to employers and their health plans. As a result, employers (or other plan sponsors) should expect ACA implementation efforts to continue as usual. There are a number of near-term ACA requirements that employers must now focus on, including the requirements to: • provide coverage for additional preventive services (effective for plan years beginning on or after August 1, 2012);

• issue a summary of benefits and coverage (SBC), usually in connection with this year’s open enrollment;

• address medical loss ratio (MLR) issues; and

• comply with new Form W-2 reporting requirements for the 2012 plan year (i.e., W-2s distributed in January 2013).

Provisions of the ACA already in operation (such as coverage for adult dependents up to age 26, the prohibition on rescissions, limits on pre-existing condition exclusions and prohibition on lifetime limits for essential benefits) remain in effect. The SBC requirement is considered by many employers to be one of the most administratively burdensome requirements imposed by the ACA. Final government regulations require employers and group health plans to provide a standardized, easy-tounderstand SBC along with a uniform glossary of coverage terms to all plan participants.

The W-2 requirement under the ACA provides that the value of the applicable employer-sponsored coverage be reported on employees’ Forms W-2. This is a reporting requirement only; it does not affect employees’ tax liability.

Employers should also monitor future government guidance on a number of as-yet-unanswered questions regarding certain provisions of the ACA, including quality of care reporting, automatic enrollment and new nondiscrimination

rules for fully insured health plans. Employers should also start considering the other ACA provisions taking effect in 2013 and later, such as the “pay or play” rules. The ACA requires certain large employers to provide health plan coverage to their employees or else pay a penalty tax to the federal government. There are several requirements that must be satisfied by the employer in order to ensure that the penalty tax is avoided. Now is the time to consider these impending requirements and begin developing a strategy for compliance. For a complete overview of the ACA’s requirements for employers and their health plans (whether self-funded or fully-insured), including the effective date of each provision, please visit www. quarles.com/health_care_reform_ summary_2012 and click on the Healthcare Reform Summary PDF at the top of the webpage. BV John Barlament is a Partner with Quarles & Brady LLP. He can be reached at john. barlament@quarles.com or (414) 277-5727.

Alexis Backs is an Associate with Quarles & Brady LLP. She can be reached at alexis.backs@ quarles.com or (312) 715-5145.

S E X TALooming Federal Tax Increases By Jason Culotta, WMC Director of Tax & Transportation Policy

Estate Tax (Death Tax)

Currently, only estates worth more than $5 million are subject to a 35 percent tax. After January 1, estates valued at $1 million or more will be subject to the tax with the rate increasing to 55 percent. The tax disproportionately affects family businesses that pass ownership through the generations.

Investment Income Taxes

t the end of this year, a number of federal tax changes will lead to a much greater tax burden for American taxpayers and businesses.

Tax reductions and credits adopted under President George W. Bush are expiring in December. Other new taxes created under the Affordable Care Act take effect in January.

How the federal government responds to this crisis depends on the outcome of the November elections. If President Obama is re-elected, look to see congressional action during the lame duck session of Congress before January, as the number of Senate Democrats is expected to decline in the new Congress. If Governor Romney prevails, expect congressional Republicans to enact tax relief early in 2013. Absent federal action, the major upcoming tax changes include:

Individual Income Tax

Though all tax brackets will see increases, the top rate for those earning at least $200,000 or married couples earning at least $250,000 will increase to 40.5 percent from 35 percent. Many businesses are organized as pass-through entities, meaning the tax liability is passed onto individual shareholders rather than the corporation. In other words, if a shareholder of a company earns more than $200,000 from the company, the shareholder is responsible for paying the 40.5 percent tax rate.

Taxes on capital gains and dividends will increase from the current 15 percent top rate to 23.8 percent and 43.3 percent, respectively. These taxes are assessed on income that has already been subject to the income tax. The negative implications for investors, including retirees, are significant.

determines tax liability under a second tax system; the taxpayer pays the higher of the two amounts. Not adjusted for inflation, the AMT is routinely limited by Congress to prevent the tax from applying to a broader group of taxpayers. Without retroactive action by Congress, more than 30 million taxpayers will be affected by this provision for the 2012 tax year.

Corporate Income Tax

The current federal rate is 35 percent. Since Japan lowered its rate in April, the United States now has the highest corporate income tax rate in the industrialized world. Some businesses subject to this tax have moved operations abroad to take advantage of lower rates.

The collective impact of these and other tax increases will be around $500 Provisions like the Section 179 expense billion for 2013 alone. The economy deduction, which benefits will struggle much more small business, and if Congress and the The United States bonus depreciation President fail to take will end. The action. now has the highest research and corporate income tax rate in Our national development leaders have the tax credit already the industrialized world. difficult task of expired in 2011. maintaining a reasonable Many Wisconsin firms tax structure that encourages growth benefit from these provisions which will while addressing the trillion-dollar no longer be available. annual budget deficits at the federal level. You can see that our federal Alternative Minimum Tax policymakers have their work cut out for The AMT was established to prevent them. BV wealthy taxpayers from avoiding taxation under the normal tax structure. Follow Jason on Twitter @JGCulotta The original “Buffet Rule,” if you will,

Business Tax Incentives

Jason Culotta works with WMC’s Tax Committee on issues relating to tax policy and how it will affect Wisconsin businesses.

Wisconsin Business Voice

Y G R ENE

A Collision Course for Higher Energy Prices

Attend WMC’s Upcoming Program

Decision 2012: EPA Trainwreck October 24, 2012 • 7:00 am, $35/person

Visit www.wmc.org or call (608) 258-3400 for more information and to register.

By Scott Manley, WMC Director of Environmental & Energy Policy

n 2008, presidential candidate Barack Obama promised to bankrupt the coal industry, stating “if somebody wants to build a coalpowered plant, they can. It’s just that it will bankrupt them because they’re going to be charged a huge sum for all that greenhouse gas that’s being emitted.”

Candidate Obama also stated that “electricity rates would necessarily skyrocket” under his cap-and-trade global warming legislation because power plants would pay a considerable amount to comply with the emission rationing plan. Although Congress ultimately rejected his cap-and-trade legislation, President Obama appears intent on keeping his campaign promise to bankrupt coal through the imposition of costly regulations from his Environmental Protection Agency (EPA).

The EPA recently embarked on an aggressive crusade to implement new rules targeting coal-fired power plants, and manufacturers with coal-fired boilers. These oppressive regulations will dramatically increase the cost of energy, diminish the reliability of our power grid, weaken our manufacturing sector and threaten the very existence of certain manufacturing facilities.

Cross State Air Pollution Rule (CSAPR). This proposal would impose stringent air pollution regulations on coal-fired power plants in 28 states, including Wisconsin. The rule is projected to cost $120 billion by the year 2015. WMC and a coalition of national business groups successfully challenged this rule, and it was recently overturned by a federal court. However, the EPA is likely to write a replacement rule.

Utility MACT. This rule establishes first-ever maximum achievable control technology (MACT) standards, regulating mercury emissions from coal-fired power plants, and is expected to cost up to $358 billion. The EPA estimates the rule will provide $500,000 and $6 million in public health benefits each year – far less than the cost of the rule. A recent study suggested that the CSAPR and Utility MACT rule together would increase electric rates in Wisconsin by 21.7 percent by 2016. Boiler MACT. Industrial boilers burning coal are the target of this rule, which is projected to cost more than $100 billion, and result in 800,000 lost manufacturing jobs nationwide. In Wisconsin, the rule is expected to cost manufacturers $680 million, result in the potential closure of 11 paper mills, and the loss of 7,500 papermaking jobs.

Utility Greenhouse Gas Standards. The EPA has proposed New Source Performance Standards for power plants that set carbon dioxide limits sufficiently low that it would be virtually impossible to construct a coal fired power plant in the future. With nearly 500 years of mineable coal in the United States, Known as the “EPA Train Wreck,” the rash of new rules the decision to cut ourselves off from this is a frontal assault on the use of coal as an abundant Our state uses coal abundant and affordable source of energy and affordable form of energy. The cascading cost to generate roughly 65 will drive up costs and make us less impacts of the EPA rules are likely to render coal percent of our electricity, so competitive. economically infeasible, and in some instances, may prohibit the construction of coal-fired power plants in the future.

the high cost of the Obama Everyone, including businesses, wants clean air. The good news is that our Administration’s anti-coal air is much healthier today than it was campaign will hit our state even ten years ago. Nationally, the EPA reports that air pollution has been reduced especially hard. by nearly 70 percent since 1970. Here in

Regulating our way to higher energy prices will spell trouble for our nation’s manufacturing sector, but the EPA rules will have a disproportionately painful impact here in Wisconsin. Our state uses coal to generate roughly 65 percent of our electricity, so the high cost of the Obama Administration’s anti-coal campaign will hit our state especially hard. Wisconsin also has the second most manufacturing intensive economy per capita in the United States. So we are home to a much higher concentration of the types of businesses that are targeted directly by the regulations, or will pay more indirectly through higher electric rates.

How much will the “Train Wreck” rules actually cost? A number of studies have attempted to estimate the cost of these rules. Following is a summary of those cost estimates. 14

Wisconsin, historic pollution reductions have led to removal of the Milwaukee area from the ozone nonattainment designation. Given the tremendous progress already made toward cleaner air, the obvious question is why is the EPA now moving forward with such costly and economically destructive air pollution rules? The answer lies in the President’s failure to enact cap-and-trade legislation – he is instead waging a war against coal and other fossil fuels through EPA regulations. We as consumers will ultimately pay the price. BV Follow Scott on Twitter @ManleyWMC

Launching Youth with Disabilities into the Workplace T

ailored Label Products (TLP) co-owner Todd Bence looks for passionate, hard-working, and motivated people to work at his 80-person manufacturing operation in Menomonee Falls. Seven years ago, he hired Patrick Young when Patrick was 16 years old. Today, Todd considers Patrick the “absolute spirit” of the company. “He’s been a mainstay, increased productivity, and has been a perfect fit for our company,” says Todd, who met Patrick the same way many employers meet good recruits: by networking.

When Patrick was in high school, he and his father were part of a church mission group that included Todd and his son. Todd’s son was instantly impressed by Patrick’s energy, work ethic, and willingness to support and nurture others. “My son said, ‘Dad, you should meet this kid. He’s absolutely amazing,” Bence recalls. “He told me story after story about how compassionate he was,

Wisconsin BPDD is spearheading a statewide project, “Let’s Get to Work,” that focuses on getting youth with disabilities into paid employment while they are still in high school. Participating school districts include: Oconomowoc, Manitowoc, Grafton, Holmen, Kewaunee County schools, Rhinelander, West Allis, Stoughton, and New Auburn. If your business wants more information on hiring youth or young adults with disabilities, contact Let’s Get to Work Project Coordinator Jennifer Neugart at (608) 261-7528 or jennifer.neugart@wisconsin.gov or visit the Let’s Get to Work website www.letsgettoworkwi.org.

what a hard working kid he is, and how he really wants to make a difference in people’s lives. Then he said, ‘And by the way, he has Down Syndrome.’ ”

After watching Patrick at work, Todd didn’t hesitate. He approached Patrick’s dad about offering Patrick a part-time job. Patrick submitted his resume and went in for a formal interview, then completed OSHA training as required for his position. TLP adapted the training by showing Patrick the tasks instead of just having him read a manual. They also provided formal job training for several weeks so that Patrick could learn – and master – the tasks at his new job. As his sophomore year of high school began, Patrick worked three afternoons a week after school, starting at $3 above the minimum wage. Seven years later, he works four days a week and has had five wage increases. He also has learned others’ jobs, and is a frequent substitute in other units at TLP.

“What I love most about my job is working with all the different people in the company and all the friends I have made at the company social events and things like our United Way campaign,” Patrick says. “I am proud that I hold the record for making the most boxes in the company for a 3 three hour shift - I made 800 boxes.”

Patrick’s co-workers say he typically performs at twice the rate of his coworkers, and many seasoned employees have tried to beat his record. Patrick’s supervisor Felicia Tyler says, “Patrick’s eye for detail and perfection in box making allows our press to have the necessary material for maximum output. His attendance is an inspiration to those who work with him.” Todd agrees: hiring

Patrick was good for business.

That’s a message Patrick and TLP want to share with others. Patrick is a member of the Wisconsin Board for People with Developmental Disabilities (BPDD), a statewide organization that promotes competitive employment for people with significant disabilities. “Integrated employment for people with disabilities is a good investment for companies because it will create more local jobs for people who will contribute to the community,” Patrick says. “Policymakers should understand that hiring people with disabilities is investing in our (Wisconsin) communities and will help local businesses because people with disabilities have good work skills. My job at TLP is an example of how a company can benefit in many ways when we are empowered to work.” BV

Take Your Legislator to Work

ctober is National Disability Employment Awareness Month. To recognize and promote the remarkable contributions people with disabilities make in the workplace, the Wisconsin Board for People with Developmental Disabilities launched the Take Your Legislator to Work Campaign in October 2011.

During the campaign, more than 40 Wisconsin legislators visited constituents with disabilities who have competitivewage jobs in the community. Through the visits, legislators witnessed first-hand the benefits of integrated work, not just for people with disabilities, but for employers, as well. Culver’s, Wal-Mart, Walgreens, and many small businesses across Wisconsin participated in last year’s campaign. Patrick Young of Tailored Label Products in Menomonee Falls participated in one of those 40-plus visits. Patrick fulfills an important role at TLP, where Nicole Richard, Human Resource Manager, said, “‘Passion for Innovation’ is our motto and Patrick certainly personifies that. He is passionate about the work he does, he is eager to take on new tasks, and he motivates those around him.”

Patrick’s representative – Dan Knodl of Germantown– visited him at TLP to learn more about his job. Patrick not only showcased his skills, but also discussed how his job allows him to be independent and contribute to government programs, rather than relying on them for assistance. In his Legislative e-Update, Rep. Knodl highlighted his visit with Patrick and mentioned that “people with disabilities are valuable employees with essential skills who enhance the work environment for everyone.”

People with disabilities are significant contributors to businesses all across the state. At the same time, there are also many people with disabilities who aren’t working for competitive wages but want to.

This October, BPDD will continue its Take Your Legislator to Work effort to educate policymakers and the general public about the importance of paid employment for people with disabilities. If your business wants to get involved, contact Joshua Ryf at (608) 261-7829 or joshua.ryf@wisconsin.gov or visit www.wi-bpdd.org. BV

Top: TLP Co-owner Todd Bence, left, with Patrick and Patricks’ supervisor, Felicia Tyler. Left: Patrick works on boxes at Tailored Label Products in Menomonee Falls. Center and Right: Patrick with Representative Dan Knodl (R-Germantown) during Take Your Legislator to Work Day. Wisconsin Business Voice

T L A E H 18

R A C H T GETTING A GRIP ON HEALTHCARE By Mark Crawford

ore than 2,000 pages make up the Affordable Care Act (ACA), a highly complex bill that has HR departments across the country struggling to understand its full ramifications. The ACA has put into motion on a national level some aspects of what Wisconsin began experimenting with years ago. That’s when in-state providers and consumers realized the present fee-for-service system was unsustainable and started working together to improve quality of care and reduce costs, with fair compensation for high-quality patient outcomes.

The goal of payment reform is to transition from a model that pays providers for volume to a model that pays for improved quality of care. The current fee-forservice model is simply too expensive. “Healthcare costs should be about 40-50 percent less than what they are today,” says James Riordan, president and CEO of Wisconsin Physicians Service Insurance Corporation in Madison.

Payment reform can be in the form of accountable care organizations (ACOs), medical homes, bundled payments, pay for performance, and other unique arrangements. All these approaches share the same goal of improving care, reducing costs, and providing fair compensation to providers. Two of the most promising reform models outlined in the ACA are ACOs and medical homes. ACOs can have multiple structures, such as a group of doctors, doctors and hospitals, hospitals and insurers, doctors and community clinics, etc. These providers manage the care of a specific population of patients by teaming up to deliver better coordinated patient care at lower costs. They also agree to take the financial risk for improving

performance – if they delivery better care at a lower cost they will earn more money. A key strategy within the ACO is the concept of the patient-centered “medical home.” This typically consists of a team of clinicians (not just the primary care physician) that plans and coordinates the routine care of patients, especially those with chronic illnesses.

“The Pioneer ACO is the first of these structures recognized by Medicare,” says John Toussaint, MD and President/CEO of ThedaCare in Appleton. “ThedaCare and Bellin are participating in this ACO. It is a direct contract with the Center for Medicare Innovation in Washington D.C. whereby all the Medicare “The most successful employers beneficiaries cared will be targeting obesity, which for by both these is now more of a cost issue to the organizations are pooled together as a average employer than smoking.” population. Part of the overall payment to these provider organizations is based on improving the cost and quality of services year over year.” The ACO concept is still being developed – there is no guidebook to follow.

“In Wisconsin we are especially wellpositioned to implement payment reform because we have several groups, such as Bellin and ThedaCare in northeastern Wisconsin and Dean and St. Mary’s in the south-central region, that have been essentially functioning as ACOs for several years,” says Christopher Queram, president and CEO of the Wisconsin Collaborative for Healthcare Quality (WCHQ) in Middleton. “They have been proactive in aligning their incentives to provide the highest possible care at lowest possible cost.”

Wisconsin Business Voice

Payment Reform in Action

The idea behind payment reform is the creation of better incentives that motivate healthcare providers to deliver the best quality in the most cost-effective manner, as well as incentives for consumers to choose cost-effective, high-quality care. ACOs and medical homes are models designed to incent this kind of care. The toughest part of payment reform for employers will be redesigning benefit plans and educating employees about the necessity of taking personal responsibility for purchasing healthcare services. “According to a recent survey most employees are on ‘autopilot’ when it comes to health care, largely choosing the same plans and providers year over year,” says Karen Timberlake, director of University of Wisconsin’s Population Health Institute in Madison. From an insurance perspective, the largest difficulty is that systems have been developed and refined for the current feefor-service environment. Many payment reform models are only in their pilot stages; as providers and insurers discover which models deliver the greatest value they will become automated and more widely available.

Payment reform runs along a continuum, from efforts that are still based on fee-for-service reimbursement, such as “pay-forperformance” incentives, to paying one, risk-adjusted rate for all the care of an entire population of patients. The Wisconsin Health Information Organization (WHIO), a group of healthcare providers, health insurers and employer representatives, assembled in 2010 to design a set of payment reform projects.

“The goal of this effort, now known as the Partnership for Healthcare Payment Reform, is to move toward value-based reimbursement by testing alternative methods of payments,” says Timberlake. “This work is also designed to involve several commercial insurers in a common reimbursement strategy, to increase the clarity of signals sent to provider organizations.”

Two sets of pilot projects have been established: a bundled payment for total knee replacement and a shared savings project for patients with diabetes. The bundled payment project involves a flat-rate payment for all the care for commercially insured adults receiving a total knee replacement; the diabetes project involves a set of typical services for patients with diabetes and certain common co-morbid conditions (comorbidity refers to a disease or other pathological process that occurs simultaneously with another.) Both projects are designed to be implemented in fully insured or self-insured environments and include clear quality metrics that will be tracked and publicly reported.

Establishing Best Practices

The first step is getting employees off “autopilot” so they can take more active roles in managing their health, especially chronic diseases. This can include workplace wellness programs, full access to primary care and community health improvements efforts like bike paths. 20

“The most successful employers will be targeting obesity, which is now more of a cost issue to the average employer than smoking,” says Riordan. “It’s difficult to imagine making a favorable, long-term impact on employer healthcare costs without moving the needle on employee obesity. Even if employers are unwilling to get into the lives of their employees, they can change things like cafeteria offerings, provide physical fitness options, or reward employees who are within normal weight ranges.” Some larger employers have made huge reductions in their healthcare costs by implementing on-site clinics. These typically focus on primary care and fit the model of the medical home. “One example is Serigraph in West Bend,” says Riordan. “The consumer-oriented model that chairman John Torinus has implemented started well before healthcare reform got moving and is highly effective.” “Our annual per-employee cost of healthcare is $9,000, which is about 40 percent below the national average of $15,000 per year,” says Torinus, the former CEO and current Chairman of the Board for Serigraph Inc. The benchmark for best practices, he notes, is $7,500-$9,000 per year. Torinus indicates the biggest savings come from three reform strategies:

• Consumer-driven health plans that reduce the cost of health care by 20-30 percent – when employees pay more they are more likely to take care of themselves • Value-based purchasing of healthcare services based on results, price and service – the best vendors have already driven out waste through lean initiatives and quality improvements

• On-site primary care facilities – “This is the best way to manage the 80/20 rule,” says Torinus. “Eighty percent of healthcare cost is spent on 20 percent of the population, which usually has multiple chronic conditions.”

The greatest results – for companies with a sufficient number of employees to be self-insured – will be realized through a highly capable medical partner that works with them to share risk and accountability.

“A company should carefully examine any prospective partner’s ability to deliver coordinated care, electronic medical records, and methods that measure quality,” indicates Jeff Thompson, MD and CEO for Gundersen Lutheran Health System in La Crosse. “If the partner has a well-run, integrated system and establishes an on-site clinic, a business can save 25 percent or more on healthcare costs.” The healthcare field is rapidly evolving and, with the passage of the ACA, has never been more complex. It is therefore critical for companies to innovate and be proactive to stay ahead of the curve. Serigraph, for example, will soon make health-risk assessments mandatory for employees and their spouses. “We also plan to develop individual three-year health plans signed by the employees and the provider,” says Torinus. “This enables us to also use health-risk assessments as management tools.”

Parting Thoughts

ACOs have the broad goal of managing entire populations within an integrated system of hospitals and physicians. Riordan cautions that many providers are looking at forming ACOs, but it’s not an easy process. “Success involves a tremendous commitment of resources from both personnel and technology,” says Riordan. “I wouldn’t look for an immediate drop in costs, but more of a moderation of the existing healthcare trend. Over time a moderated trend can compound into significant savings.” “The key to controlling healthcare costs is delivering the appropriate care, at the right time and place,” says Eric Borgerding, Executive Vice President for the Wisconsin Hospital Association in Madison. “This often means keeping employees out of costly healthcare settings. To accomplish this, business leaders must have access to good data to make informed decisions from sources like WHIO and WCHQ.” Queram agrees that good data is essential for building sound market-oriented models.

“Wisconsin Collaborative for Healthcare Quality is part of this equation,” he says. “We collect and report on data from physician groups regarding clinical quality. We use a variety of clinically relevant metrics and make this information available online to help customers choose providers, help providers benchmark their performance and improve their practices and outcomes, and help payers create better payment models.”

Data as far back as 2004 is available on the WCHQ website (www.wchq), but is not consumer-friendly, notes Queram. “Another website, www.wisconsinhealthreports.org, repackages this data into narrative stories, which are easier to understand and can lead interested readers to the main database.”

Torinus emphasizes that companies must develop new business models that include self-insurance and on-site primary care. “A mid-size company that has done very little regarding cost controls will need about three years to complete a set of at least a dozen best practices,” he says. Wisconsin is consistently ranked as one of the top five states in the country for high-quality care. “This is because we believe in staying ahead of the curve,” says Borgerding. “We knew payment reform was on the way before it was proposed by the Obama Administration. Healthcare costs are a key part of total labor cost for many businesses. A state that does a good job of moderating healthcare costs, and focusing on providing better value for healthcare dollars, should have a competitive edge when it comes to attracting new business operations or expansions, compared to other states. Wisconsin plans to remain a leader in delivering innovative solutions for healthcare that make Wisconsin businesses more competitive in the global marketplace.” BV Crawford is a Madison-based freelance writer.

Wisconsin Business Voice

New “In Wisconsin” Marketing Initiative Champions the State’s Business Climate By Paul Jadin, CEO/Secretary of Wisconsin Economic Development Corporation

n the past year, since the legislature formed the Wisconsin Economic Development Corporation, we’ve made numerous positive changes to drive business growth in Wisconsin. These include changes to tax and litigation regulations and valuable incentives for businesses to relocate to our state and create jobs through expansion. We’re also working with legislators to develop a state-supported capital investment program that will help entrepreneurs turn their ideas into profitable business ventures.

Business leaders around the country have taken note. We recently jumped to 20th place in CEO Magazine’s prestigious business climate ranking and moved up to 17th place in CNBC’s top states for business. And statewide, we’ve seen a renewed interest among business leaders to move forward with growth and expansion plans. Now, we’re embarking upon a comprehensive initiative to brand Wisconsin’s business climate to create awareness among business leaders of the benefits of starting, growing or expanding a business in Wisconsin. In essence, our goal is to align the perception of Wisconsin’s business climate with our new reality.

Our brand, “In Wisconsin,” highlights what makes Wisconsin a great state in which to do business. Namely: a culture of independence, innovation and discovery; a prime location in terms of infrastructure and low business costs; and, leadership in numerous industry sectors with worldwide market

prominence. Of course, key on that list is manufacturing in many industry classes, including industrial manufacturing, water-related products and systems, food production and processing, and bio-science and healthcare equipment. Wisconsin has always led the way in manufacturing and continues to rank at the top, and through the “In Wisconsin” brand we will embrace and celebrate that proud heritage. To tell the story of Wisconsin’s business climate, we secured the support and participation of world-class Wisconsin companies that have excelled in their industries with innovation and leadership. These include: Rockwell Automation, which began in Milwaukee as Allen-Bradley and is leading the age of smart manufacturing; Organic Valley, which started in 1988 with seven farmers in LaFarge and is now the leading producer of organic products in the country; and Schneider National, formed in 1935 in Green Bay by Al Schneider, who sold his family car and bought one truck. These companies were chosen based on a variety of criteria, most importantly that they share the drive, spirit and innovation it takes to go from idea to global business. Other companies will join us in future phases of this campaign in order to highlight additional Wisconsin economic strengths. The “In Wisconsin” campaign includes print, web and billboard advertising targeted to reach business owners in

Wisconsin and neighboring states. We’re developing a robust new website to serve as a “one stop shop” for businesses seeking information and materials targeted at specific audiences like site selectors. We’re also boosting our visibility efforts through numerous channels and working in close collaboration with our statewide economic development partners.

Our goal is to increase awareness of Wisconsin as a premier state to do business. Success measures include continued improvement of our state’s ranking in business climate surveys and our ability to fill the pipeline of economic development projects. Of course, our ultimate success measure is a strong, vibrant economic climate that supports business start-up, retention, expansion, and attraction in Wisconsin.

I can’t think of a better time to promote Wisconsin’s diverse, expanding business environment. We look forward to continuing to partner with organizations like WMC, which shares similar goals. Strong business grows In Wisconsin. BV Paul Jadin is CEO/ Secretary of Wisconsin Economic Development Corporation. Visit www.wedc.org for more information. Jadin will become President of Thrive this November.

WMC in the News – On Workforce

“Right now there are shortages of engineers, welders, CNC operators, machinists and masons. Some of those require work experience, some apprenticeships, some technical degrees, some four-year degrees or more. Let’s make sure everyone knows the market, because the market will drive us to success.” – Jim Morgan, WMC Foundation President, Janesville Gazette, August 26, 2012

On the Economy

“I think we have a bipolar economy.” – Kurt R. Bauer, WMC President/CEO, Green Bay Press Gazette, July 29, 2012

On Mining

“The United States has more than $6 trillion worth of untapped minerals waiting to be mined. Advances in mining technology allow valuable minerals to be mined in an environmentally responsible manner while providing family-supporting jobs – leaving the anti-mining crowd with no rational basis to oppose mining investment projects.” – Scott Manley, WMC Director of Environmental & Energy Policy, Heartlander, Published by The Heartland Institute, July 6, 2012

On Healthcare

“It is similar to a business in a hurricane zone preparing for a forecasted storm that may or may not hit. Pragmatism and prudence dictates that you prepare for the worst-case scenario, just in case.” – Rebecca Hogan, WMC Director of Health & Human Resources Policy, The Business Journal Serving Greater Milwaukee, September 14, 2012

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Three manufacturing-focused events coming to Milwaukee Celebrating 25 Ye Manufacturing Matters! Conference

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Manufacturer of the Year Awards

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February 28, 2013

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February 27-28, 2013

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Wisconsin Business Voice

C S I W N I E D A M Made In Wisconsin L

ast month we highlighted K&B Innovations, makers of Shrinky Dinks; Mathews Solocam bows; St. Croix fishing rods, and Silver Spring horseradish. This week we’re introducing you to…

Schaefer Brush Manufacturing

Family-owned and proud to call Wisconsin home since 1905, Schaefer Brush in Waukesha is a one of the most diverse brush manufacturers in the world. The craftsmanship and skills of their 56 employees help them specialize in all types of brushes including twisted-in-wire brushes, cylinder, belt, staple-set, hand drawn and metal-back strip to name a few. Schaefer Brush supplies 1,200 companies across the United States and the world in diverse industries such as foundries, mining, automotive, construction, plumbing, HVAC, maintenance, and many more. Andrew Schaefer founded Schaefer Brush, originally supplying brushes to the entire brewing industry from a small building on south 2nd street in Milwaukee. Harold Schaefer, the fourth generation owner, runs the company today. The dedicated employees pride themselves in providing every one of their customers with the highest level of service in the industry. www.schaeferbrush.com

Berntsen International, Inc.

Berntsen International, Inc., Madison, has been “Marking the Infrastructure of the World” for over 40 years as a leading manufacturer of marking and identification products for land surveying, utilities and construction. Berntsen is a privately held, family business owned and operated by Rhonda Rushing whose father, Phil Peterson, co-founded the business in 1972. Today, Berntsen’s customized survey products can be seen worldwide – from Walt Disney World, to the top of Mt. McKinley, to the Nile River. Innovation has marked Berntsen’s history and continues with the recent launching of the new Berntsen Inframarker RFID (Radio Frequency Identification) system for location, verification and documentation of underground assets such as utilities. www.berntsen.com

Carma Laboratories, Inc.

We’ve all used Carmex from the little jar with the familiar yellow cap. But did you know it’s made right in Frankiln, Wisconsin? Alfred Woelbing was a buyer at a Chicago department store back in 1937, but he didn’t much like working in the big city. So he began his own business, making silver polish in the basement of his home in Wauwatosa, Wisconsin. Always curious, always inventive, Alfred then decided to create a home remedy for a pesky condition that he’d often suffered: cold sores. After much experimentation over a hot plate, Alfred created Carmex, and then proceeded to sell it to pharmacies by going door to door. It wasn’t long before Alfred’s home-based business was booming. Apart from a wartime hiatus in production due to lanolin rationing, Alfred’s company—now known as Carma Labs—grew steadily. Now Carma Labs is managed by Alfred’s grandsons Paul and Eric Woelbing. This new generation of Woelbings has overseen several major innovations, including the introduction of new lip balm flavors; a lip balm line for women, Carmex Moisture Plus™ ultra hydrating lip balm; and a line of Carmex skin care products. www.mycarmex.com

Contact Katy Pettersen, kpettersen@wmc.org if you are interested in having your product featured in Wisconsin Business Voice.

E R A C H ALT

Wisconsin Can Lead the Way for Healthcare Reform By Rebecca Hogan, WMC Director of Health & Human Resources Policy

little to contain healthcare costs. Most businesses, before the passage of the federal health law, agreed that national reform was needed. The skyrocketing costs were not sustainable. The ACA is not the reform businesses bargained for.

ver since the Federal Supreme Court’s ruling in June on the Affordable Care Act (ACA), I have been working alongside our members to figure out what compliance with the upheld law entails.

With over 2,000 pages in the bill, thousands of additional pages of federal guidance – some not yet released – employers, and in particular human resources departments, have spent their fair share of time and resources trying to keep up. This summer, WMC hosted both a healthcare webinar and an in-person seminar to discuss compliance with the Affordable Care Act in 2012 and beyond. Good attendances and numerous questions at both these events make it easy to conclude that this law is nothing less than complicated.

Never mind the law’s trillion-dollar plus price tag, the continual increase in healthcare costs, the 20 new tax increases (that’s the latest number I have), and the political rhetoric. Employers have little time to get tied up in the talking points; they will do what is right and comply with the law. From a policy perspective I hope people will start to acknowledge that this reform, at least so far, has done

All across the country, no matter the industry, people are wrestling with the new regulations, but in Wisconsin, we are subsidizing the law. That is because Wisconsin already had in place many of the provisions the federal law now requires. Things like: • Dependent coverage to age 26 (we were once to age 27!)

• Required coverage of contraceptives • Required direct access to OB/GYN services

• Required coverage of mammograms • Guaranteed issue of small group health insurance coverage • Guaranteed renewability of individual coverage

• Guaranteed coverage regardless of health conditions (HIRSP) • Individuals could not be dropped from a policy because of a health condition

Not only did Wisconsin already address these issues, insurers and healthcare providers were working to establish cost and quality measures to meet the demands of employers who were no longer willing to pay upwards of ten percent a year in healthcare cost increases.

So now, instead of getting real reform, employers in Wisconsin will be getting much of the same, but at a higher cost. This is in addition to employee coverage mandates and much more paperwork to provide to the federal government.

No matter what happens to the ACA after the November elections, we must advance policies that will lead to lower healthcare costs for everyone. I hope Wisconsin can be a model for the nation to review. I am eager for WMC’s new healthcare committee to be a leader in this discussion. If you or someone you know has an interest is being part of the dialogue, please contact me at rhogan@wmc.org. We hope to commence the discussion this fall. BV Follow Rebecca on Twitter @Rebecca_Hogan

• Prohibition of imposing preexisting conditions in virtually all markets • Rating limits imposed on insurers in a small group market • Independent external review

• Coverage of working families with children • Medicaid expansion

• Over 90 percent of the population with health insurance Kurt Bauer leads the panel discussion with Hadley Heath, Senior Policy Analyst at the Independent Women's Forum, and Senator Ron Johnson during WMC's Affordable Care Act Update.

In Wisconsin, improving health care quality is health reform Congratulations Wisconsin! For the ﬁfth straight year, an independent federal agency has ranked Wisconsin’s health care among the very best in the country... and we can do better. The pursuit of excellence remains the top priority for Wisconsin’s community hospitals. That’s good news for patients and Wisconsin’s employers. Higher quality care means greater value for our health care dollars.

High Quality, High Value Health Care A Wisconsin Advantage

To learn how hospitals are improving health care quality and value in Wisconsin, go to wha.org.

800.511.2098

Ask the WMC Board

2450 S. Commerce Drive New Berlin, WI 53151 (262) 786-1600 Tel (262) 786-5074 Fax

Manufacturing, Inc.

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Exhibit Opportunities Available 2013 Safety & Health Conference and Expo April 22 – 24, 2013 Kalahari Resort, Wisconsin Dells Show off your safety or health-related products to the more than 1,000 safety and health professionals who attend this annual conference. Visit www.wisafetycouncil.org or call (800) 236-3400 for more information. 28

MC’s healthcare agenda includes initiatives to encourage employers to take innovative steps to improve the health status of their employees and control their healthcare costs. We have interviewed nearly 20 Wisconsin employers whose healthcare innovations serve as best practices for others to use as models for their own initiatives. This is just a summary of some of the inspiring stories we’ve heard. To view all the best practices in detail visit the WMC website: http://www.wmc.org/programs/awardsprogramsbestpractices/ health-care-best-practices/

Business strategies

Wellness Program ComPonents

emPloyee engagement

In most cases, innovative and effective management of healthcare costs and employee wellness are driven by company senior management, often hands on participation. Following are some of the key strategies we have observed through our best practice studies.

They are scalable and can involve a lot of resources or be done on the cheap. There is not a one-size-fits all model, it’s what works for you. Here are some examples of steps our innovative Wisconsin employers are doing to improve employee health.

Forward thinking employers establish innovative programs to control costs and improve health status, but they have all found they have to actively engage employees to get good results. Here are some of the common best practices.

Companies Set Clear Objectives:

A Health Risk Assessment (HRA) is the cornerstone for many employee programs:

Companies engage, interest, and connect employees using programs like:

Reduced absenteeism and productivity  Reduced healthcare costs  Improved employee and family health  Be viewed as the Employer of Choice  Set example in community 

Change employee behaviors through incentives (and disincentives)

Written and biometric tests Mandated for employees, offered free to spouses  Surcharge insurance premiums if don’t participate  Identify high risk conditions through HRA  Follow up with personal coaching and aggressive case management programs 



Encourage preventive screening:

 Establish holistic wellness, fitness and prevention programs with incentives

Mammograms  PSA  Blood pressure

Alter plan designs:

Educational programs:

Increase copays and/or deductibles  Cover all preventive care services at no cost to employee  Impose disincentives for unwarranted use of emergency room services  Install high deductible plans with Health Savings or Reimbursement accounts  Promote/incentivize use of generic drugs and use of Pharmacy Benefits Manager (PBM) 

Control utilization: Channel employee purchasing decisions through data transparence, communications and incentives  Control the cost of chronic disease utilizing HRA’s with follow-up counseling.  Use of healthcare data from insurers and other sources to encourage the use of high quality, low cost providers:  Contract for specific services like bypasses, hip and knee replacements including at out of area high quality low cost providers. 

Integrate company provided services to manage disease: Provide a continuum of preventive and rehabilitative services: Wellness Fitness  Nutrition (cafeteria)  Physical therapy  Occupational health  

Bring medical services in-house: On-site clinics: Quad Med, Ashley, Seats Inc. are some examples  Physician or Nurse Practitioner on-site weekly. Counsels employees, conducts sports exams, administers vaccinations, etc.  On-site chiropractor and dietician 



Bring in outside experts to talk on subjects like cardiovascular care, smoking cessation, diabetes management, obesity, etc.

On site fitness facilities: From state of the art to free used equipment. Unsupervised to staffed with professional trainer.  Open programs to organized classes  

Employers allow flexible work hours to facilitate use of facilities: Access for employee and spouse and dependents  Some offer 24/7 access 

Nutrition: Company subsidized promotions to encourage healthy eating  Healthy options in vending machines. One company has the vending company insert gift cards in random healthy choices.  Promote use of community based agriculture. Some companies sponsor weekly on-site farmers markets.  Cafeteria discounts on healthy choices.  Provide services of a Nutritional counselor 

On-site stress management, massage therapy, etc: Yoga Relaxation room  Flexible schedules

Internal competitions, and challenges Incentives to participate in wellness activities, and use preventive and disease management services

Set standards and metrics for incentives: Participate in Health Risk Assessments Enroll in Non-smoking programs  Enroll in weight loss programs  Use preventive care services. Schedule routine physical exams  Attend seminars and lunch and learns  Get flu shots  

Incentive models can take many forms: Monthly cash rewards Points programs. Most wellness/fitness/nutrition activities qualify  Participation is key, not outcomes  Incentivize HRA participation. Or mandate it. Some employers mandate HRA’s for employees and spouses  

Incentives are paid in different ways: Cash incentives (taxable) HSA contributions  Premium reduction credit or employee/employer share. Some employers change the share by as much as 60/40% to 75/25% or more.  

If your company has established innovative programs to control healthcare costs and improve employee wellness and productivity let us know and we will consider featuring you in an upcoming report. Contact Mike Shoys at mshoys@wmc.org.

 

Wisconsin Business Voice

Y T E AF Violence: SWorkplace

Preventing the Unthinkable By Janie Ritter, Director of Wisconsin Safety Council

long with the rest of the nation, I watched with horror as the violent event unfolded at the Sikh temple in Oak Creek this summer. That shooting took place the week after a disgruntled ex-employee walked into his workplace in Milwaukee and shot to death his supervisor. These are horrific, hard-to-comprehend, surreal, yet isolated incidents of violence.

Despite the perception, homicides represent a very small number of workplace violence incidents. Most workplace violence incidents involve cases of assault, domestic violence, stalking, harassment and physical or emotional abuse – these cases you rarely hear about in the news. However, if not dealt with timely and properly, these incidents can escalate into a homicide situation - something we all hope will never happen in our place of business.

Homicides in the workplace are currently the fourth-leading cause of fatal occupational injuries in the U.S., behind traffic accidents, contact with equipment, and falls. Even though the occurrences of homicides in the workplace are trending down, workplace violence is always a major concern for employers.

Studies indicate each year close to 2 million American workers report having been victims of workplace violence. And, as with any abuse situation, many more go unreported. Assessing possible risks is an important early step in violence prevention. The following are a few factors that may increase a worker’s risk for workplace violence: • exchange of money • delivery of passengers, goods or services • contact with the public • working with volatile, unstable people • working alone or in small groups • working early in the morning or late at night • working in high crime areas

Workplace violence falls into four categories:

1. Violence committed by criminals with no connection to the workplace (largest group) 2. Violence directed toward employees by customers, clients or others whom an organization provides a service 3. Violence against a co-worker, supervisor or manager by current or former employee

4. Violence committed by a nonemployee but has a connection to an employee (domestic issue)

When violence comes from categories 3 or 4 above (employee or someone connected to an employee) there is a greater chance of you will see warning signs.

As a business leader, you play an extremely important role in the prevention of workplace violence. The safety and welfare of your employees goes beyond managing the traditional risks: traffic accidents, slip and trips, or injuries involving machinery.

Warning Signs/Changes in Behavior

• Tardiness, unexplained absences or unplanned-use of leave time • Anxiety • Lack of concentration • Change in job performance • Noticeable isolation from coworkers • Disruptive phone calls or e-mail • Sudden requests to be moved from public locations in the workplace • Unexplained bruises or injuries • Noticeable change in use of makeup (to cover up injuries) • Disruptive visits from current or former intimate partner • Acting uncharacteristically moody, depressed, or distracted • In the process of ending a relationship • Being the victim of vandalism or threats

Workplace violence is a serious concern, not only because of the human factor, but also as a business practice. There are many economic costs to employers including negative effects on your bottom line with lost work time, decreased employee morale and trust, lower productivity, increased medical and workers compensation costs, and the list goes on.

We all hope we don’t have to deal with a workplace violence situation, but it behooves us to be prepared in case we do. BV Follow WSC on Twitter @WISafetyCouncil

Prevention Strategies

To prevent or minimize the risk of violence in the workplace, employers should enact appropriate precautions, including:  Establish and communicate a fair and consistent zerotolerance policy toward workplace violence: a policy covering all workers, patients, clients, visitors, contractors, and anyone else who comes into contact with your staff.  Assess work environments: create physical separation between public and worker, use appropriate lighting and environment layout including entrances and exit access. Ensure high-risk areas are more visible.  Adopt a carefully written and implemented Workplace Violence Prevention Program: include in your Employee Handbook, or Operations Manual.

 Training: train employees in non-violent response and conflict resolution tactics, and provide them with information on hazards associated with specific tasks or worksites with appropriate work practices/ policies and risk prevention solutions.  Support victims of workplace violence: Communicate internal and external resources available to employees. Foster trust and respect among workers and between employee and management. Watch for warning signs.

Chapter of

Safety Training

The Wisconsin Safety Council, a division of WMC, is the reason more people go home safely every day from manufacturing plants, offices, and construction sites. WSC offers training throughout the year at locations across the state.

MILWAUKEE AREA October 10 Confined Space, Train-the-Trainer

November 2 OSHA Recordkeeping Rule & Review

November 8 Creating a World-Class Safety Culture

MADISON AREA October 2 RCRA Compliance for Hazardous Waste Generators Overview

October 2 DOT Hazmat Transportation Refresher Overview

October 9 Coaching the Lift Truck Operator, Train-the-Trainer

October 15-18 Safety Management Techniques (SMT), part of the Advanced Safety Certificate Series

October 24 HazCom, Train-the-Trainer

November 5-8 Worker’s Compensation Case Management & Workplace Anatomy

December 4 OSHA Recordkeeping Rule & Review

December 6 Effective Team Safety

December 12 Worker’s Compensation Law Symposium

December 13 Lockout/Tagout, Train-the-Trainer

FOX VALLEY/GREEN BAY AREA October 30-November 2 OSHA 30-hour Voluntary Compliance Course for General Industry

November 13 OSHA Recordkeeping Rule & Review

MID-STATE AREA October 10 (Eau Claire) Coaching the Lift Truck Operator, Train-the-Trainer

November 7 (Stevens Point) Incident Investigation

November 14 (Marshfield) Supervisor Development: Safety & Health Fundamentals

December 3 (Wausau) OSHA Recordkeeping Rule & Review

December 4-5 (Stevens Point) OSHA 10-hour Voluntary Compliance Course for General Industry

December 12 (Marshfield) Safety Inspections

For a complete schedule and registration information, visit www.wisafetycouncil.org

Decision 2012 Part IV: EPA Trainwreck October 24, 2012

7:00 – 9:00 a.m. Best Western Bridgewood Resort Hotel, Neenah $35 per person Featured Speakers: Congressman Reid Ribble (R – 8th District) and Ross Eisenberg, Vice President of Energy Resource, National Association of Manufacturers The EPA has proposed a series of rules that will significantly increase the cost of energy. Wisconsin will be uniquely impacted by the EPA rules because of our heavy concentration of manufacturing jobs, and our investment in coal for electricity. The Decision 2012 Briefing will explain how these rules are likely to increase the cost of doing business, and what can be done to rein in the EPA.

Visit www.wmc.org or call (608) 258-3400 for more information and to register. Wisconsin Business Voice

W E N Y N A P M O CCompany News Advanced Welding Institute Opens Location in Wisconsin Advanced Welding Institute is opening a welding school in Eagle River in northeastern Wisconsin. The post-secondary welding school offers accelerated welding programs to meet the growing demand of skilled labor in Wisconsin manufacturing. AWI students have the option to choose the structural program which is 15 weeks, and AWI will also offer night classes and upgrade training to employers to increase employee productivity and skill in the workplace. www.wiweldingschool.com

Modine Manufacturing CEO Named 2012 Distinguished Citizen of the Year Established by the Boy Scouts of America, the Distinguished Citizen of the Year Award recognizes noteworthy and extraordinary leadership of citizens across the United State who demonstrate values expressed in the Scout Law. Tom Burke, President and Chief Executive Officer of Modine Manufacturing Company in Racine, has been chosen as the 2012 Distinguished Citizen of the Year by the Three Harbors Council of the Boy Scouts of America. Burke and Modine Manufacturing are being honored for the impact he and the company have on the Racine community.

Briggs & Stratton CEO Honored with Distinguished Alumni Award

Skyward, Inc. Earns 2012 Reader’s Choice Award for School Management System

Todd Teske serves as the chairman, president and chief executive officer of the world’s largest producer of gasoline engines and a leader in outdoor power products with revenues exceeding $2 billion annually. He is also the elected chair of WMC, and a 1987 graduate of the University of Wisconsin Oshkosh. This October, Teske will be one of five top alumni to receive the UW Oshkosh Alumni Association’s highest honor— the Distinguished Alumni Award—at a dinner as part of the University’s Homecoming 2012 activities.

Skyward, Inc. in Stevens Point is a leading provider of K-12 school administrative software that surpasses districts’ needs in state reporting, improves operational capabilities, and opens communication between schools and families. Each year the readers of eSchool News, eCampus News and eClassroom News nominate their top picks for hardware, software, website and services. Nearly 1,300 nominations were submitted, and Skyward was the only student management system to receive the award this year. For more than 30 years, Skyward has served more than 80 percent of Wisconsin’s school districts, serving “It is a testament to Todd’s intelligence, more than 614,400 of Wisconsin’s work ethic and leaderships skills that students. Over the years Skyward has he has, in a relatively short time frame, hired 206 graduates of Wisconsin climbed to the top of one of the state’s signature corporations with a brand name Technical Colleges and UW campuses across the state and projects creating recognizable the world over,” said nearly 600 new jobs over the next Kurt Bauer, President/CEO of WMC. 10 years.

Patch Products Receives Recognition as a Leader among Family-Owned Businesses Due to its strong employee work ethic and unwavering devotion to having fun, Patch Products was recognized for being a leader among family-owned businesses in the state of Wisconsin. The CPA firm Smith & Gesteland honored Patch Products at their annual Wisconsin Family Business of the Year Awards in Madison this May, with its Work Hard Play Hard Award. www.patchproducts.com

www.skyward.com

Top Floor Technologies Moving to the “Top Floor” Top Floor Technologies, a leader in industrial web design and marketing, recently completed a move to the Security Insurance Building on S. Moorland Road in New Berlin. “We want to create a more enjoyable and productive work environment for our team and customers,” said Jim Bernthal, President of Top Floor Technologies. The company has grown exponentially over the years, increasing from a staff of six to a team of twenty-five. strategic internet marketing solutions

www.topfloortech.com

WMC at Home and on the Road

1. WMC met with a group of mayors from Argentina who wanted to

discuss economic development in Wisconsin. 2. WMC’s Senior Vice President of Government Relations James Buchen met with Chad Lee, U.S. Congressional candidate (R-Madison). 3. Along with many concerned manufacturers, educators and community leaders, a high school student attended a WMC Foundation Workforce Paradox listening session and offered suggestions on how manufacturers can better reach out to students and parents. 4. Secretary of Administration Mike Huebsch spoke to the WMC Small Business Committee. 5. WMC’s current and many past chairmen gathered in Milwaukee. First row (l-r): Tom Boldt, The Boldt Company; Bob Cornog, Snapon Incorporated; Ray Gregg, John Deere Horicon Works; Bob Spitzer, Murphy Products Company, Inc.; Rock Flowers, Nelson Industries, Inc. Second row: Jim Haney, former WMC President; Terry Growcock, The Manitowoc Company, Inc.; Randy Knox, W.D. Hoard & Sons Company; WMC Chair Todd Teske, Briggs & Stratton Corporation; Tom Howatt, Wausau Paper Corp.; Art Nesbitt, Nasco International, Inc.

6. WMC’s Kurt Bauer, right, and Dan Ariens, President/CEO of

Ariens Company, second from left, honored Rep. Al Ott (R-Forest Junction), left, and Sen. Frank Lasee (R-De Pere), second from right, with Working Wisconsin Awards during an event celebrating the production of 3 million Sno-throwers at Ariens Company in Brillion.

7. UW System President Kevin Reilly and David Brukardt, Associate

Vice President of the Office of Economic Development for the UW System met with WMC executives to discuss ways the two entities can work together. 8. Throughout the summer, Wisconsin Safety Council Director Janie Ritter toured the state visiting the Wisconsin Corporate Safety Award Winners and presenting each company with a CSA flag. Here she is with Dillman Inc. 9. Members of WMC’s staff visited many companies this summer to award legislators with the Working for Wisconsin awards (see p. 7 for the complete list). WMC’s James Buchen, left, visited Caterpillar to honor Rep. Mark Honadel (R-South Milwaukee).

Wisconsin Business Voice

Let’s Get Back to Working, the Wisconsin Way By Tommy G. Thompson, Candidate for U.S. Senate

isconsin’s role in this year’s election is hard to overstate. Not only does Wisconsin feature our very own Vice Presidential candidate, Paul Ryan, but with my victory we have the chance to provide the U.S. Senate the 51st vote to change the course of the country.

Our country is in crisis, with Washington’s leadership providing one broken promise after another that have left our country worse off. On our current course, we are in danger of breaking perhaps our most-important promise, the promise to leave our country in better shape and with greater opportunity for our children and grandchildren. There’s the “Wisconsin Way” where we get government out of the way by cutting taxes, growing the economy and creating jobs which is what we did when I was governor. Together, we created 750,000 jobs while I cut taxes 91 times, delivering over a billion dollars in property tax cuts.

For the past four years, we’ve seen Tammy Baldwin further embrace the “Washington D.C. Way” of more government and higher taxes and the results have sent our country in the wrong direction: 1. Record Debt - Over the past four years, Baldwin has joined Democrats in driving our country’s debt to a staggering $16 trillion, an 81 percent increase in the past four years alone. I support the Romney/Ryan plan - we can’t spend more than we take in.

2. Explosion of Entitlements - In the 1960s, government transfers to individuals equaled $24 billion in current dollars, by 2010 that amount was nearly 100 times as large - and that doesn’t include the addition of the single largest entitlement, the Baldwin-supported Obamacare. When the economy fails, government grows - we need to reverse that trend.

3. “Work Wanted” vs. “Help Wanted” - Currently, there are 23 million Americans struggling to find work. As government spending and regulation get in the way of job creation, our unemployment rate climbs. Baldwin doesn’t have a plan for turning those haunting “work wanted” signs into “help wanted” signs. We’ve done it in Wisconsin, and can do for the country what we did in our great state. 4. The Unfulfilled Promise of a College Degree - A college degree used to mean they key to opportunity, now with over half of all recent college graduates unable to find work, the college diploma has become an unfortunate symbol of the broken promise of a better America. Our stalled economy isn’t providing opportunity and bailouts; stimulus packages and massive government programs aren’t the answer.

5. Falling Family Income and Rising Costs - The heartland has been challenged as family income has fallen by an average of $4,000 over the past four years, yet the cost of living has increased as food, utility, gasoline and healthcare premiums have skyrocketed, often doubling. Yet, Baldwin has supported 135 new tax increases, while voting to raise our country’s debt ceiling seven times. We don’t need higher taxes and more government spending, we need less.

We don’t need Baldwin’s plan for more of the same, we need a new opportunity and a new direction for our country. We must get our country working again, with real reforms like those that have worked in Wisconsin, rather than the “Government first, business second” philosophy my opponent and the Washington leadership have embraced the past four years. Together, we can keep our promise to our future generations, and it begins with your help on November 6. BV

Thank You Senator Kohl

MC and WMEP thank Senator Kohl for his diligent effort representing the people of Wisconsin for the past 23 years. Senator Kohl’s work with the Wisconsin Manufacturing Extension Partnership has helped WMEP thrive and grow. Senator Kohl with WMEP's Buckley Brinkman.

“The Senator has been a tireless supporter of the Manufacturing Extension Partnership system and the Wisconsin MEP. Senator Kohl was there at the formation of this system that helps small and medium sized manufacturers flourish and thrive. His leadership and continuous support for funding assured that these operations would have the same resources as their larger cousins.

We Must Invest in a “Made in Wisconsin” Economy By Congresswoman Tammy Baldwin, Candidate for U.S. Senate

or the past 14 years as a member of Congress, I have always had an open door for the Wisconsin business community and, if elected to the U.S. Senate that will continue. You deserve a Senator who will listen and work for Wisconsin.

I have fought to secure research and development investments for Wisconsin businesses and I have proactively reached out to the business community on important issues like manufacturing, energy, health care costs, innovation, and research and development.

As I travel across Wisconsin, I do a lot of listening and wherever I go businesses leaders tell me about the need to cut taxes for small businesses and invest in education and training to grow our economy and create jobs. They talk about the need for our education system to provide the skilled workers they need to compete and prosper. And they express frustration with the disconnect of the partisan debates in Washington. They believe we need more compromise, not less, and they are right.

I have been proud to be strong advocate for public private partnerships to grow our economy. Innovation has always been a key driver of U.S. prosperity and competitiveness throughout our country’s history. Wisconsin, and particularly the University of Wisconsin System, has been a leader in research, science and innovation.

In Wisconsin, we believe in hard work. For decades, we’ve made things: paper, engines, tools, ships.

Give our workers and businesses a fair shot, and we’ll compete against anyone. That’s why I’m taking on China’s cheating – and betting on Wisconsin.

I have worked across party lines to introduce and pass bipartisan legislation to take on China’s unfair trade practices and strengthen Wisconsin’s manufacturing economy by evening the playing field for workers in our state. Together with Fox Valley Congressman Reid Ribble, I introduced the CHEATS Act, which would allow the U.S. to impose countervailing duties on Chinese imports that are heavily subsidized by the Chinese government. Working with Senator Herb Kohl, I have pressed the federal government for a balanced approach to regulations on Wisconsin’s paper manufacturers so that we protect our environment and public health, while at the same time we work to strengthen Wisconsin’s manufacturing economy. Heeding the concerns of Wisconsin’s paper manufacturers, we made a strong case for Wisconsin manufacturers and urged the administration to allow more time to implement the new standards.

I have also worked across party lines to strengthen Wisconsin’s economy with Senator Ron Johnson. Together, we both supported rebuilding the St. Croix bridge because I understand strengthening our infrastructure is a very important component to our global competitiveness. Wisconsin businesses need a strong infrastructure to move their goods and products to market. In Wisconsin, we’ve always counted on manufacturing as a foundation of our economy and it is a foundation I am committed to strengthening. In order to move our economic recovery forward we must invest in a “Made in Wisconsin” economy. When we do, we will create jobs and an economy built to last- where both the middle class and business benefit with shared prosperity. BV

Senator Kohl also provides personal support for the state’s manufacturers. He makes countless trips to factories throughout Wisconsin to see the challenges they face first-hand. Wherever manufacturers need help, Senator Kohl has been there. His retirement is the end of an era. I grew up shaking hands with Bill Proxmire at stadiums, state fairs, and town meetings. He took a passionate interest in the wellbeing of the people of Wisconsin. Senator Kohl carried on that tradition, fighting for all of us in the way that only he can. Thank you. You will be missed!” - Buckley Brinkman, Executive Director/CEO, Wisconsin Manufacturing Extension Partnership

More to Madison than Politics By Jennifer Alexander, President, Greater Madison Chamber of Commerce

adison is 30 square miles surrounded by reality. When these words were spoken in 1978 by soon-tobe Governor Lee Dreyfus, the question was not about the political correctness of Madison. It was – is it really 30 square miles? While the mileage has increased and been questioned through the years, the perception of Madison has stuck. As the Capital City and the geographic location of the past year’s intense political scene, the perception may be at an all-time high. Now, I’m not writing to defend nor deny the perceptions of Madison politics. I’ve seen both sides bring passion to many topics as I’ve worked as a small business owner, a high school principal, a cabinet member under two Governors and now the retiring President of the Greater Madison Chamber of Commerce. What I am writing about is the rest of Madison. The non-political side of Madison. Imagine for a minute, in an It’s-aWonderful-Life type of way, what Wisconsin would look like without Madison?

First, imagine our state without the University of Wisconsin and the educational opportunities it offers. Now, take away the 130,000 jobs throughout

the state that UW-Madison and its affiliated organizations support while generating $614 million in Wisconsin tax revenue.

Next, factor in the nearly $7 billion in income generated throughout the state from the Wisconsin bioscience sector. Factor out about one-fourth of that as the Madison area is home to almost 25 percent of Wisconsin’s bioscience establishments.

Then, eliminate the area’s $1.86 billion agriculture industry that supports nearly 60,000 jobs. And remember, the state’s sales tax revenue would need to decline by 12.5 percent. Impressive given that Dane County’s population is less than 8 percent of the state’s population. Oh, and don’t forget to remove 14.5 percent of Wisconsin’s Gross Domestic Product as well.

My point is – a successful Madison area contributes to a successful state. The Greater Madison area has a significant economic impact on Wisconsin. And exciting things are happening here. Shouldn’t we celebrate that our state has housed and grown many national companies such as Oscar Mayer, American Family Insurance, Trek Bikes, Epic Systems and Spectrum Brands just to name a few? These recognizable brands have benefitted the entire state.

All of this growth, all of this economic impact isn’t because of Madison’s politics; it is because Madison is a great place for business, for family and for life. When Madison ranks as one of the top places in the nation for young professionals to work as well as retirees to relocate, it helps our tourism industry and puts our state on the map. It’s a Wonderful Life ends with the main character finding Zuzu’s petals in his pocket, remembering that without him, his daughter would not have been born. Maybe drawing the same analogy to an old Badger ticket stub is a little too much? Maybe the better way to say it is this – the next time you hear someone dismiss Madison because of its ‘crazy politics,’ remember… a successful Madison contributes to a successful Wisconsin. No matter how many square miles we have. BV

Jennifer Alexander is the President of Greater Madison Chamber of Commerce. She is retiring at the end of this year after nine years of service.

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