Wisconsin Business Voice - Spring 2018

BUSINESS DAY

FUTURE WISCONSIN

HIGHER EDUCATION

THE WINNERS

Leaders Gather in Madison

Our State's Next Decade

Restructuring the UW System

Manufacturer of the Year

Spring 2018 Issue 28

Family Ties Keeping the Family Business Generation to Generation

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LET US BE YOUR BUSINESS LEARNING PARTNER. Contact Kate Schlesinger, VP Corporate Partnerships 608-441-7314 kate.schlesinger@uwcped.org go.wisc.edu/custom

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In This Issue...

WISCONSIN

Spring 2018 Issue 28

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Family Ties

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F RO M T H E P R E S I D E N T Wisconsin’s Economic Futurist EG I S L AT I V E U P DAT E 1 0 LStopping Worker's Compensation Lawsuits

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TA X P O L I CY The Property Tax Increase That Will Not Die S I N E S S DAY R E V I E W 1 6 BU Business Leaders Converge in Madison STORY: FA M I LY T I E S 2 0 COVER Keeping the Family Business Generation to Generation

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H E R E D U CAT I O N 2 4 HUWI GSystem Restructuring A Positive Step Forward EG I S L AT I V E VO I C E 3 1 LVoting for Foxconn: Q&A with Rep. Jason Fields I G H E R E D U CAT I O N 3 2 HHelping Every Student Find Success S I N E S S WO R L D 3 4 BU 35 Years of Business Education

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WO R K F O R C E The Future Workers Tax Credit O C U S O N M A N U FAC T U R I N G R E V I E W 4 0 FFocusing on Wisconsin's Supply Chain

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Spring 2018

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F RO M T H E E D I TO R

Moving Forward

WISCONSIN

President/Publisher Kurt R. Bauer

By Nick Novak WMC Director of Communications and Marketing

Managing Editor Nick Novak

Art Direction/Production Kyle Pankow

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isconsin has a lot to be proud of.

In the last issue’s cover article, I wrote about what makes up the state’s economy. We have a vibrant, diverse and innovative group of employers and employees that are driving our state forward.

Whether it is our ever-expanding manufacturing sector—which employs 461,000 people and creates $56 billion of economic output—or one of the many other important industries like retail, construction and agriculture, Wisconsin’s economy is looking to the future.

Automation and other technology are making the job of making things more efficient, and in doing so, are requiring a whole new class of skilled workers. Dairy farms can now monitor the health and wellness of hundreds of cows from an app. And retailers are making it easier and easier for consumers to get their products.

While places like Seattle, San Francisco or New York may claim to be hubs of the economic future, I can’t think of a place more ready than Wisconsin.

Silicon Valley may the epicenter for new apps and technology, but students at our very-own UW-Parkside are creating apps for businesses that are solving real-world problems. Foxconn is being built down the road from that campus, and Stevens Point is home to Skyward, a software developer that serves more than seven million students in 21 states.

Contributing Writers Kurt R. Bauer, Nick Novak, Scott Manley, Chris Reader, Lucas Vebber, Brittany Rockwell, Cory Fish, Ray Cross, Wade Goodsell, Rolf Wegenke, John Ashley, Jack Orton, Bob Moses, Mike Steinl

Advertising Sales Nick Novak, nnovak@wmc.org

Additionally, unlike other cities and states, Wisconsin is ensuring employers can reach their full potential by steadily improving the business climate. Gov. Scott Walker has cut taxes by $8 billion, invested in worker training programs, reformed welfare and got government out of the way by cutting red tape and ending burdensome regulations.

Mixing an economy that is ready for the future and leaders like Gov. Walker who want to empower the business community—instead of hampering its growth—is a recipe for continued success. Wisconsin is moving forward, but our progress cannot end.

That is why WMC is on the front lines fighting for employers throughout the state. With your continued help, Wisconsin will keep moving forward.

Are you with us? n

Wisconsin Business Voice is published quarterly by Wisconsin Manufacturers & Commerce. WMC is Wisconsin’s chamber of commerce, manufacturers’ association, and safety council representing businesses of all sizes and from every sector of the economy.

WMC 501 E. Washington Avenue Madison, WI 53703 tel.: 608.258.3400 Follow us:

WisconsinMC Wisconsin Manufacturers and Commerce WMC501

Looking to advertise in WI Business Voice? Contact Nick at nnovak@wmc.org. @WisconsinMC

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Spring 2018

wisconsinbusinessvoice.org | From the Editor

PRIORITIZING PEOPLE At First Business, we support people with financial needs, not the financial needs of people. So when I heard that a long term client who built a successful business retired in style in Florida, I was both thrilled to hear how happy he was – and grateful to have been able to help him along the way. And when I heard he actually retired early? Well, that made my day.

JERRY SMITH Co-Founder & Chairman, First Business

WE ARE BANKING. FOCUSED. firstbusiness.com/learnmore

Member FDIC

Bauer speaking at the sold-out 2017 Future Wisconsin Summit in Madison.

Wisconsin’s Economic Futurist

By Kurt R. Bauer WMC President & CEO

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ho is in charge of Wisconsin’s economic future? That was the question I asked the WMC Board back in the spring of 2013. That started a conversation that led to the creation of the Future Wisconsin Project—a WMC Foundation program designed to bring business, government and education leaders together to identify and address the state’s long-term economic challenges and opportunities. Although Future Wisconsin covers multiple issue areas, like business competitiveness, global engagement, government efficiency, quality of life and entrepreneurism, the project has spent the overwhelming majority of its first five years on Wisconsin’s consensus number one economic challenge: workforce.

As we begin the next five years, work-

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force will continue to be the dominate issue because there is no clear solution to the labor shortage that is projected to persist at least through 2040, according to the Applied Population Lab at UW-Madison. But in truth, unless there

Given our demographic challenge, the difficultly in convincing people to move here from other states and the impasse on federal immigration reform, Wisconsin needs more people who can work, to actually work. is an unforeseen spike in birthrates in Wisconsin, our state’s working age

wisconsinbusinessvoice.org | From the President

population decline will continue well beyond mid-century.

Since 2013, the Future Wisconsin partners, including the Wisconsin Association of Independent Colleges and Universities, Wisconsin Economic Development Corporation, University of Wisconsin System, 72 local chambers of commerce, Department of Workforce Development, Wisconsin Technical College System, Department of Public Instruction and young professional groups, have worked on talent retention and attraction.

We have focused on educating born-and-raised Wisconsinites about the many career choices our economy has to offer statewide so they can make informed decisions about what they want to do and what is the best

We need to know why people are not working. training pathway to get there. We have also commissioned our own videos that helped successfully lobby policy makers to allocate resources to attract people from neighboring states, especially Illinois. And we have held five Future Wisconsin Summits, the last of which was a sell out!

We will continue all of the above, but we need to do more, including reintegrating the 29 percent of Wisconsinites who are of working age, but not currently in the workforce. Wisconsin actually has a better labor participation rate than 45 other states, which is good. But given our demographic challenge, the difficultly in convincing people to move here from other states and the impasse on federal immigration reform, Wisconsin needs more people who can work, to actually work.

The Future Wisconsin partners and other stakeholders will be exploring this challenge in greater detail through 2018 and beyond. We need to know why people are not working. Is it because they live in a part of the state where careers choices are sparse? Despite a record-low 2.9 percent unemployment

rate, we know there are pockets of Wisconsin where the unemployment rate is much higher. Can we change that?

Can we potentially incentivize people to move to where the jobs are? Is there enough affordable housing in places that need workers?

How big of a problem is addiction in keeping people from being productive members of society? Respondents of WMC’s economic surveys say many job applicants either fail or don’t show up for drug tests.

We also know that Wisconsin has not been immune to the opioid and methamphetamine crisis plaguing much of the nation. How can Future Wisconsin help? Can we steer people who have been through rehabilitation into careers that help them stay sober?

Can we do something similar with people with criminal records? Can reforming our criminal justice system be part of the solution?

We also hear via WMC’s economic surveys that government entitlement programs can be a disincentive for some to enter or reenter the workforce.

Are government benefits competing

with employers and if so, what can be done about it? In Wisconsin, Gov. Scott Walker has proposed drug testing welfare recipients. In Michigan, a state with a similar workforce shortage, there is legislation requiring people enrolled in Medicaid to work 30 hours per week.

Dr. Alan Yeung from Foxconn said at WMC’s Focus on Manufacturing Breakfast in January that one of the major selling points in selecting Wisconsin over competing states for the Taiwanese-based company’s manufacturing complex was our reputation for skilled, industrious and innovative workers (read more on page 40). That makes me proud. But it also makes me even more determined to use Future Wisconsin as the catalyst to address both the quantity and quality of our workforce for generations to come. n To find out how you can get involved with the Future Wisconsin Project and become part of the solution, contact WMC Foundation Executive Director Wade Goodsell at 608-258-3400 or wgoodsell@wmc.org.

Follow Kurt on Twitter @Kurt_R_Bauer

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From the President | wisconsinbusinessvoice.org

Spring 2018

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Winning for the Business Community

By Scott Manley WMC Senior Vice President of Government Relations

A

fter the 2016 elections, Republicans won historic gains in statehouses across the United States.

Wisconsin was no exception.

The 2017-18 legislative session began with Republicans holding a 64-35 majority in the State Assembly, and a 20-13 majority in the State Senate. These are the largest GOP majorities in the past fifty years.

WMC was optimistic heading into the legislative cycle because it had all the makings for an historic session of pro-growth reforms. As President Trump would say, it set up to be so successful that we might get tired of winning.

And that’s exactly what happened.

Dozens of consequential bills passed the legislature and were signed into law by the Governor. The list of victories is too numerous to mention, but some of the highlights of the now-concluded legislative session are listed below.

Regulatory Reform Wisconsin became the first state in the nation to prevent bureaucratic agencies from implementing new regulations that will cost more than $10 million statewide unless both houses of the legislature vote to approve the new regulations.

Mining Moratorium Repeal The knee-jerk moratorium against metallic mining that was enacted nearly twenty years ago was repealed, allowing companies to pursue permits to conduct environmentally sound mining. If a project is approved, this will bring well-

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the largest economic development project in Wisconsin history. The enabling legislation offers “pay-as-you-grow� tax incentives that tie assistance directly to investment and job growth.

Employment Regulation Preemption

paying jobs to Northern Wisconsin where they are desperately needed.

Repeal of the State Property Tax The state forestry tax portion of property tax bills was eliminated last year, saving Wisconsinites about $180 million on their property tax bills.

Repeal of the State AMT Significant progress was made two years ago to scale back the state Alternative Minimum Tax. Effective this year, Wisconsin has completely repealed this misguided tax that punishes success.

Personal Property Tax Exemption for Machinery Although we had hoped to completely repeal the state tax on personal property, the recently enacted exemption for machinery, tools and patterns is a great first step in the right direction. The new exemption will save businesses an estimated $74 million each year.

Foxconn Wisconsin landed the largest direct foreign investment in U.S. history, and

wisconsinbusinessvoice.org | Government Relations

Wisconsin will now have clear, consistent and uniform employment regulations as local governments have been preempted from enacting their own boutique standards. The bill also prohibits municipalities from forcing businesses to give up their right to resist unionization of their workforce as a condition of receiv-

These and many other important legislative victories are impressive by any measure. We are fortunate to have a legislature that has done so much to advance the agenda for growth and prosperity. ing government approvals and permits.

Workforce Skills Training A total of $20 million in additional funding has been allocated to support the upskilling of workers through our technical colleges and universities. A new pilot program to allow middle school children to participate in youth apprenticeships was also created.

WMC will dedicate considerable effort to supporting the legislators who stood with our members on pro-growth reforms this session.

Welfare Reform Able-bodied adults will now be required to work or attend training for at least thirty hours per week to be eligible for welfare benefits. In addition, drug screening and treatment will be required for certain public assistance benefits.

These reforms will help address the worker shortage by getting people off the sidelines and back into the workforce.

Tort Reform The legislature enacted a package of tort reforms that change our class action and civil discovery laws to reduce the growing transactional costs of civil litigation. The new law also places common sense disclosure requirements on third-parties who bankroll lawsuits, and imposes badly-needed limitations on third-party auditors of businesses’ unclaimed property tax liability. These reforms continue Wisconsin’s status as a national leader on civil justice reform.

Unfinished Business Remains These and many other important legislative victories are impressive by any measure. We are fortunate to have a legislature that has done so much to advance the agenda for growth and prosperity. When we look at the dysfunction of our neighbors to the south, it’s a great reminder of what a blessing it is to be on an entirely different economic and policy trajectory.

That said, this session also saw a few missed opportunities. For example, disagreement over transportation funding last summer caused a political stalemate that largely paralyzed the legislature for months. That lost time could have been spent on more productive endeavors.

In addition, much legislative bandwidth in both houses was spent on two bills that would have allowed local property assessors to dramatically increase the tax burden on many businesses.

One of those misguided bills would have allowed assessors to basically tax businesses based upon on how they choose to finance their day-to-day business operations. This is an idea so terrible that even Gov. Jim Doyle had the good sense to veto it, yet many legislative Republicans pushed the concept until the very end of the session. Fortunately, Assembly Speaker Robin Vos (RRochester) and Senate Majority Leader Scott Fitzgerald (R-Juneau) took a strong stand for tax fairness, and stopped these misguided bills from advancing.

Another top WMC priority was (and remains) enacting a fee schedule for workers compensation medical procedures. Without a fee schedule, Wisconsin’s work comp medical costs are nearly 50 percent higher than the median state. Forty-four other states have given employers this badly needed relief. It’s disappointing that the majority of lawmakers in both houses subordinated good public policy to their political relationships with the opponents of this sensible reform. Lawmakers need to make fixing this problem a top priority next session if we want our manufacturing, construction, agriculture, forestry, mining and transportation sectors to remain strong.

All told, it was an excellent legislative session for the business community, and Republican lawmakers who took principled votes on dozens of important bills deserve enormous credit. WMC will dedicate considerable effort to supporting the legislators who stood with our members on pro-growth reforms this session.

We will also work hard to ensure that the right lawmakers are in place to tackle the unfinished business next session. n Check out columns on the subsequent pages for a more detailed look at some of the important legislative action this session.

Follow Scott on Twitter @ManleyWMC

As a WMC member, you have access to multiple policy experts who not only work on your behalf each day at the Wisconsin State Capitol, but can be a resource for you and your business. Whether you have questions on health care and tax policy or environmental and regulatory policy, WMC’s staff of experts is ready to help your business. Below is a staff listing of WMC’s government relations team. If you have any questions, please do not hesitate to reach out.

Government Relations Staff: Scott Manley Senior Vice President of Government Relations smanley@wmc.org Chris Reader Director of Health & Human Resources Policy creader@wmc.org Lucas Vebber General Counsel Director of Environmental & Energy Policy lvebber@wmc.org Cory Fish Director of Tax, Transportation and Legal Affairs cfish@wmc.org Brittany Rockwell Director of Small Business Advocacy brockwell@wmc.org To speak with one of WMC’s experts, call 608-258-3400.

Government Relations | wisconsinbusinessvoice.org

Spring 2018

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Stopping Worker’s Compensation Lawsuits

By Chris Reader WMC Director of Health & Human Resources Policy

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he grand bargain of worker’s compensation means that if a worker is injured on the job, the “exclusive remedy” available to them is worker’s compensation. Injured workers are guaranteed medical care and, if needed, payments for disabilities that stem from their workplace injury. At the same time, employers are protected from lawsuits for workplace injuries.

That has been the law of the land in Wisconsin since 1911.

On January 9, Wisconsin Court of Appeals District III turned this notion on its head for some employees. In Rivera vs.

West Bund Mutual, District III ruled that workers on the job through a staffing service who are injured on the job are actually able to choose between filing a worker’s compensation claim against the staffing service and filing a lawsuit against the employer where they were working when the injury occurred. With 63,000 workers on the job through a staffing service in Wisconsin on a daily basis, the Rivera decision opened a high level of risk for employers in Wisconsin.

Because of the risk of lawsuits against employers under the Rivera decision, employment attorneys started cautioning employers against taking on the new liability that came with temporary workers. This resulted in employers not knowing where they would find the talent they need on a daily basis, but it also put staffing services at risk if employers, their customers, stopped utilizing their services.

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Governor Walker signing Act 139.

Immediately after the decision from District III, WMC reached out to lawmakers to ask the legislature to close the new lawsuit loophole. Fortunately, lawmakers agreed that the decision opened a new problem that needed to be addressed quickly. Rep. Cindi Duchow (R-Town of Delafield), Sen. Duey Stroebel (R-Saukville) and Sen. Rob Cowles (R-Green Bay) worked to draft a bill to address the issue and successfully championed it through the legislative process.

The bill was introduced in the state Assembly on January 30, and a public hearing was held by the Assembly Insurance Committee on February 1.

The Senate version was introduced on February 7 and a public hearing was held by the Senate Labor and Regulatory Reform Committee on February 14. Both committees approved the bills unanimously, and on February 20 the Assembly and Senate both approved the bill unanimously. Gov. Scott Walker

wisconsinbusinessvoice.org | Legislative Update

signed the bill on February 28 as Act 139, closing the window for lawsuits in worker’s compensation that was opened by Rivera on January 9.

Along the way, WMC worked with other stakeholders like the Wisconsin Association of Staffing Services, the Wisconsin Insurance Alliance, the Worker’s Compensation Advisory Council, even the AFL-CIO, to build consensus and fix the Rivera decision.

In the end, all sides agreed the decision needed to be fixed, and worked to ensure quick passage of Act 139.

With Act 139 now law, the worker’s compensation “exclusive remedy” is again the law of the land. Employers who utilize staffing services for help finding workers can again do so without fear of lawsuits should a worker become injured on the job. Act 139 shows that the legislature is able to work quickly and in a bipartisan fashion when faced with an important issue. n Follow Chris on Twitter @ReaderWMC

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For more information contact WMC Foundation Executive Director Wade Goodsell, 608.258.3400 or wgoodsell@wmc.org WMC Foundation is dedicated to a better Wisconsin by providing information on the state and its economy, promoting the value of the free enterprise system and advancing efforts that ensure a high quality of life for our citizens. WMC Foundation runs Wisconsin Safety Council and Wisconsin Business WorldÂŽ, as well as events Spring 2018 11 including State of Wisconsin Business & Industry Luncheon and the Future wisconsinbusinessvoice.org Wisconsin Summit.

Regulatory Environment Improves in Wisconsin

By Lucas Vebber WMC Director of Environmental & Energy Policy

A

s the legislative session has come to a close we can finally tally up all the improvements to our state’s environmental regulations over the biennium—and the list includes some significant reforms. With the help of WMC members, we were able to make the case for these vital reforms and get these reforms drafted, passed and signed into law. In this column I will be highlighting a few of the important reforms that passed this session: the mining moratorium repeal, wetland reform and slag recycling legislation.

The most significant regulatory change of the past session was eliminating the mining moratorium. Despite Wisconsin’s long mining heritage, the state banned the industry nearly two decades ago. This session, led by Rep. Rob Hutton (R–Brookfield) and Sen. Tom Tiffany (R–Hazelhurst), the legislature repealed the ban on metallic mining and approved common sense reforms to modernize the permitting process. This is great news for not only those who now have the chance to work directly in metallic mining, but for the hundreds of companies throughout Wisconsin who provides manufactured goods and services to the mining industry.

Another step in the right direction was in the area of wetlands. Legislation passed this session slashed red tape for nonfederal wetlands. The reforms, led by Rep. Jim Steineke (R–Kaukauna) and Sen. Roger Roth (R–Appleton)

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eliminated permitting requirements for nonfederal artificial wetlands, eased the permitting burden for certain urban wetlands by limiting when a permit is needed and when mitigation is required. The legislature also extended the validity of wetland delineation from five years to 15 years—which will help reduce costs and give more certainty to developers. Wisconsin has historically

With the help of WMC members, we were able to make the case for these vital reforms and get these reforms drafted, passed and signed into law been one of the most heavily regulated states when it comes to wetlands, and these common sense reforms helped bring Wisconsin back toward the main stream.

wisconsinbusinessvoice.org | Regulatory Update

Slag recycling legislation was another win for our state. Slag is produced as part of the production and processing of iron and steel. It is a commercially valuable product that can be recycled and used for things like construction aggregate and as a replacement for cement. Slag in Wisconsin had been categorized as “solid waste” because it was produced as part of a manufacturing process. Legislation drafted by Rep. Paul Tittl (R–Manitowoc) and Sen. Duey Stroebel (R–Saukville) modified the state definition of “solid waste” to exclude slag—mirroring what our neighboring states and many others have done. This reform will help keep costs down for foundries in our state while ensuring that valuable slag material can continue to be recycled throughout Wisconsin.

These are just a few of the environmental reforms that the legislature moved through this session. These key reforms would not have been possible without the time and expertise that WMC members were able to provide to get them all across the finish line, and it was a pleasure to work with a variety of members to get these reforms through. WMC is proud to have led the way on these efforts, and looks forward to continuing to work with legislators throughout the Summer and Fall to ensure we hit the ground running with fresh proposals when the new legislature takes office in January. n Follow Lucas on Twitter @VebberWMC

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The Property Tax Increase That Will Not Die

By Cory Fish WMC Director of Tax, Transportation and Legal Affairs

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t came down to the wire, but WMC successfully killed a property tax increase on Wisconsin businesses. The theory is based on the idea that a property is worth more on the open market, and therefore should pay higher taxes, solely because it is occupied. If you think of it in terms of residential properties, what rational buyer would look at two homes that were identical except that one was occupied by a family and one was vacant and would be willing to pay more for the one that is occupied.

The idea is outrageous on its face. Yet, local municipalities, and many lawmakers, want you to pay more property taxes based on that very idea.

Wrapped up in the "Dark Stores Theory" is also a movement to overturn the Walgreens case, which stands for the proposition that financial agreements or other contractual arrangements of value are not a part of the valuation of real property because they're not part of a market rent or sale. Again, based on Wisconsin's and the vast majority of state's property taxation system this makes perfect sense. We value the property (the land and improvements) based on what the market would bear, not what one entity values the property at because of special circumstances.

In a residential real estate context, your property taxes would not go up because you took out a second mortgage on your home. The same logic should hold true for businesses.

Contrary to what proponents of these tax increases argue, all taxable property

owners are likely to see tax increases under these proposals. The Wisconsin Constitution's Uniformity Clause will force the same taxation principles on all taxpayers. There is not an exception that allows small businesses and residential properties to be taxed differently from “big box” retailers.

WMC has advocated against these property tax hikes all session because we believe businesses are taxed enough already. According to the nonpartisan Tax Foundation, Wisconsin is ranked 38th worst in the nation for business tax climate. There has been a steadily increasing shift in the statewide property tax burden from residential properties to businesses over the last decade. Businesses in Wisconsin already pay an effective property tax rate 15 percent higher than residential property owners. These bills would cause that disparity to rise even higher.

When it looked like the dark stores legislation would pass near the end of session, WMC worked with legislators in the days leading up to the Assembly's

final floor period of the session. The effort ultimately fell apart. In the words of Speaker Robin Vos, "while Wisconsin Manufacturers & Commerce was willing to consider a compromise, the League of Wisconsin Municipalities was adamant in its opposition, killing the measure in the chamber this session."

It's telling that the League of Municipalities rejected an opportunity to pass legislation to prevent businesses from using vacant properties that are not physically comparable due to physical deterioration or distress (i.e. the "dark

WMC has advocated against these property tax hikes all session because we believe businesses are taxed enough already. stores theory"). They instead held out for their goal of making Wisconsin the only state in the nation to enact this misguided “tax to the max” assessment policy.

Tax assessors are already gearing up to push this legislation next session.

WMC will continue to advocate against increasing taxes on businesses and look for creative solutions to the property tax problem so Wisconsin does not have to go back to the days of double digit percentage property tax increases under the Doyle Administration. n Follow Cory on Twitter @FishWMC

Tax Policy | wisconsinbusinessvoice.org

Spring 2018 15

Business Leaders Converge in Madison F

Lt. Gov. Rebecca Kleefisch kicks off Business Day in Madison as the program’s emcee.

or the 16th year in a row, CEOs and other executives joined together for an event that has become synonymous with top-notch national speakers, can’t-miss networking opportunities and insightful remarks from state leaders.

This year was no different, and Business Day in Madison proved once again why it is the signature event of Wisconsin Manufacturers & Commerce.

Attendees heard Townhall.com Political Editor and Fox News Contributor Guy Benson provide insight into the national political landscape and what it might mean for Wisconsin. Additionally, Sharyl Attkisson, a five-time Emmy Award-winning investigative journalist and host of a nationally syndicated public affairs television program, discussed the impact of today’s media and the importance of cybersecurity.

While the event’s morning speakers focused on national issues, the conversation turned to Wisconsin for the afternoon, including the hottest topic in Wisconsin right now: Foxconn.

Dr. Alan Yeung, Foxconn Director of U.S. Strategic Initiatives, delivered an update on the company’s investment in Wisconsin and explained why they are excited to begin production in the state.

One piece of the puzzle he discussed was the new Wisconn Valley Innovation Center that will be housed at Foxconn’s new Wisconsin headquarters in downtown Milwaukee.

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“Our goal here in Wisconsin is to work closely with you, within the ecosystem, to create new products, new applications and new solutions,” Yeung said during his remarks. “So, that not only we sell that into the North American market, but help bring that to other places around the world and the innovation center [in Milwaukee] will be one vehicle for that.”

Yeung also made the point at Business Day that he wants Foxconn to help develop and keep workers in the state.

“We know that the upper Midwest, especially Wisconsin, has a strong heritage for a great workforce. Right now, unemployment is very low at three percent, which is great news,” he added.

“But, I still think there are a number of underemployed workforces. Also, I think we would look for how the workforce not only can be developed but also be retained.”

In addition to Dr. Yeung, Gov. Scott Walker delivered closing remarks at Business Day. He focused on Wisconsin’s continued economic improvement and thanked the business leaders in attendance.

“Government doesn’t create jobs, people do,” Walker said. “All of you here and all the people that you represent in the state, not just those who’ve been a part of long standing and traditional employers, but those who are dreaming up new ideas, taking the risk, taking that leap of faith, going out starting new businesses,

wisconsinbusinessvoice.org | Business Day Review

creating new opportunity, creating new prosperity, creating chances for others to work as part of those businesses big and small alike, together we are moving our state forward.”

The governor was also clear that Wisconsin’s success is due to the improved business climate, and it goes beyond just Foxconn’s investment. During his speech, he mentioned companies expanding in the state like Kwik Trip and Oshkosh Corporation, and other companies moving to Wisconsin like Haribo.

“Thinking about what the difference between where we were eight years ago, I know you got a presentation from Alan Yeung, but this isn’t just about Foxconn, it’s just really overall, about changing the business climate in the state,” Walker added. “WMC and others associated with the organization and with each of you here, helped us do that because we’ve changed the business climate.“ Business Day attendees also heard from Lt. Governor Rebecca Kleefisch, who emceed the event, Sauk County Circuit Court Judge Michael Screnock and Attorney General Brad Schimel. n Save the Date: Business Day in Madison will be held next year on March 6. For more information or to sponsor the event, contact Brittany Rockwell at brockwell@wmc.org.

Major Michael Anderson, Commander, 153rd Squadron, Wisconsin Civil Air Patrol, and the UW-Madison Air Force ROTC Color Guard lead the Pledge of Allegiance.

Five-time Emmy Award-winning investigative journalist Sharyl Attkisson discusses the importance of the First Amendment and the state of media in America with WMC President & CEO Kurt R. Bauer.

Townhall.com Political Editor and Fox News Contributor Guy Benson gives his insight into D.C. politics, the Donald Trump Presidency and what it all means for Wisconsinites.

Gov. Scott Walker speaks about his administration’s efforts to improve Wisconsin’s business climate, which has led to companies expanding and moving into the state.

Attorney General Brad Schimel tells Business Day attendees about his office’s work to end Wisconsin’s opioid epidemic, support local law enforcement and stand up to overreach from the federal government.

Sauk County Circuit Court Judge Michael Screnock highlights why he believes in the rule of law and why businesses need certainty from the court, not judicial activism.

Foxconn’s Director of U.S. Strategic Initiatives Dr. Alan Yeung discusses why the tech company chose Wisconsin and how businesses can get more involved with the project.

Business Day Review | wisconsinbusinessvoice.org

Spring 2018 17

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Small Business Committee Has Big Impact

By Brittany Rockwell WMC Director of Small Business Advocacy

W

MC was founded in 1911, and for over 100 years has advocated for policies to support job creation, competition and free enterprise. Many of WMC’s members are companies that employ less than 100 people. For that reason, the WMC Small Business Committee (SBC) was established. Like the overall organization, members of the WMC Small Business committee hail from all across the state and from every sector of the state’s economy. The Small Business Committee is an opportunity for entrepreneurs, family businesses and main street industry to grow a better Wisconsin.

Members of the Small Business Committee have the chance to network and learn from other small business owners across Wisconsin. Each year, one meeting is hosted at a committee member’s facility, giving the group a chance to see the business’s success on display.

In December, committee members traveled to beautiful Green Bay to be thoroughly impressed by Bay Towel Linen and Uniform Rental. Bay Towel is a highly-diversified production facility serving health care, industrial manufacturers, food manufacturing and hospitality customers. The WMC Small Business Committee had the opportunity to tour Bay Towel’s 100,000 square foot HLAC accredited processing facility. The washing facilities and technology they utilize daily are astounding.

The team at Bay Towel takes every step of the laundering process very seriously. This attention to detail is possible because of the company’s core

values of family, integrity, unprecedented customer service and the highest quality products. These values have helped the company be successful and grow from a small family business into one of the leading commercial laundries in Wisconsin. The team at Bay Towel will tell you that being a family- owned business means never forgetting who the customer is and providing amazing service in ways that many would not consider. They call this “The Bay Towel Experience” (read more about Bay Towel on page 20).

The WMC Small Business Committee is proud to have members like David Jerrett from Bay Towel Linen and Uniform Rental bringing fresh ideas and insight to committee meetings. Thanks to help from WMC’s Small Business Committee, Wisconsin has seen regulatory reform implemented like the REINS act, which was passed this session.

Members vote to approve a legislative agenda each session that guides the focus of discussion during meetings as well as the WMC small business lobbying efforts at the capitol. Once legisla-

tion has been introduced, committee members have the opportunity to testify in favor of the bill they advocated for.

The committee plays a very important role and their voices are being heard at the capitol.

At each SBC meeting, WMC invites influential leaders in Wisconsin to speak to members about the challenges small businesses are experiencing. This creates an incredible opportunity for them to be heard on the most critical issues they face by those with the power to make changes. On March 14, the SBC met for their spring meeting and were able to hear from Wisconsin Department of Transportation Deputy Secretary Bob Seitz about all the ways Wisconsin’s DOT is working to cut costs, save taxpayers money and accomplish more with the money they do spend. It was beneficial for Small Business owners from across the state to hear a behind the scenes report from Deputy Secretary Seitz and be able to ask questions.

This is the type of opportunity committee members have at every meeting. n If you are a small business owner interested in joining the WMC Small Business Committee, please reach out to Brittany at 608-661-6917 or brockwell@wmc.org.

Upcoming meeting dates: Wednesday, May 2, 2018 Wednesday, October 3, 2018 Wednesday, December 12, 2018

Small Business | wisconsinbusinessvoice.org

Spring 2018 19

Family Ties

Keeping the Family Business Generation to Generation

By Nick Novak WMC Director of Communications and Marketing

W

aking up early on a Saturday morning to go to work is hardly the dream of an eightyear-old, but that was not the case for Jake Butz. Growing up, he would tag along with his dad, John Butz, to Bay Towel and spend the day with him.

Jake would do odd jobs around the plant while his dad would get work done in the office. That work paid off though, as he would earn a quarter for sorting 100 hangers onto a rack.

This was not the reason Jake was excitedly heading to work on a Satur-

20 Spring 2018

day. Yes, he enjoyed spending time with his dad. However, the real reason he was waking up early on Saturday was because of the green and gold.

“We used to launder all the practice jerseys, towels and other miscellaneous linens for the Packers,” he proudly explains. “So, I would go in on Saturday, we would get all the practice jerseys and we’d drive up to Lambeau. We would pull up to the back door, go right into the locker room and exchange the gear.”

To this day, the sense of excitement

wisconsinbusinessvoice.org | Cover Story

can still be heard in Jake’s voice as he tells the story.

“It was amazing that we would be able to do that,” Jake added. “We are very proud to say we still service the Packers after all these years.”

Humble Beginnings What is now Bay Towel is far from what it was in 1929 when Olive and Harvey Fiss purchased The De Pere Laundry at 523 Charles Street in De Pere. They slowly expanded, including welcoming their nephew, Don

Butz, into the family business in the 1930’s.

Over the next couple decades Don became a partner and expanded the company thanks to acquisitions of other local dry cleaners and laundry facilities, and thanks to terrific customer service. Then in 1971, Don’s son, John, joined the business as Plant Production Manager.

Today, John is Chairman and CEO of Bay Towel, and his son, Jake – who joined the family business in 2014 – is Vice President of Finance.

As a fourth-generation owner of the company, Jake has seen the many challenges of running a family-ownedbusiness.

“The business always needs to be cognizant of where it wants to go in the future,” Jake says. But, figuring out what that future is and how to achieve the goals set out can be daunting.

That is why people like Mike Steinl specialize in helping businesses through the complicated process. Mike has been an accountant for nearly 30 years, and he has spent much of that time helping companies prepare for transitions to the next generation of owners.

As a Partner at Wegner CPAs, Mike tells his clients it is never too early to start planning.

The Numbers So, why is it important to discuss the transition of family businesses?

For one, family businesses account for 64 percent of U.S. Gross Domestic Product (GDP). They generate 62 percent of the nation’s employment and account for 78 percent of all new job creation. Additionally, about 35 percent of Fortune 500 companies are family run businesses.

While family-run businesses are a huge part of the American economy, very few make it past the first couple generations.

Just over 30 percent of family-owned businesses survive into the second

generation, 12 percent make it to the third and just three percent are operating at the fourth-generation level and beyond, according to the Conway Center for Family Business.

A key reason that companies do not make it to future generations is that there is no succession plan in place.

In 2017, it was estimated that about 40 percent of family business owners were expected to be at or near retirement. However, only half who expect to retire in five years have selected a successor.

How to Prepare Jake Butz knows he will have some tough decisions to make as he gets older and takes over the family business. But, that is exactly what his dad did, and it led the company to years of success.

“If you really want that family business to be successful and to continue beyond the first or even future generations, you do need to make difficult business decisions that may not always sit well with the family,” Jake says. “Until you are able to make those difficult decisions, it is going to hold the business back from being able

to grow.”

One of the first tough decisions that needs to be made according to Wegner CPAs’ Mike Steinl is deciding if the company should be passed onto the next generation and who should take it over.

He explains that kids should not be forced to inherit a company, because

A key reason that companies do not make it to future generations is that there is no succession plan in place. that is typically not in the best interest of the business. In this case, it makes sense to sell it to an outside buyer.

However, many families prefer to keep it all relative.

“If you are serious about wanting to transition to your kids, it is worth spending the time to think it through and talk with your kids about it,” he adds. “Then come up with a plan on how to do it rather than saying I will take care of it tomorrow.”

He suggests doing this with at least five years before the current leader

Cover Story | wisconsinbusinessvoice.org

Spring 2018 21

having the owners determine what is important to them.”

Pride in Family

decides to retire.

Once a successor is picked, Mike says that individual needs to be groomed to take over: learning the operational ropes, meeting the business partners and clients and interacting with others at the company in a leadership role.

It is also important that other positions in the company be considered.

If the CEO is nearing retirement, are others on the executive team? In some cases, family members may not fit the roles available or there may not be family to fill the gaps. Mike says companies cannot be afraid to go outside of the family in the best interest of the business.

The other consideration that needs to be made, is how the company will be transferred. Mike often works with his clients to determine if the kids will be purchasing the company, or if it is going to be gifted to them. Either way, it can be complicated.

“With a smaller company, you have more flexibility of gifting stock than if you are with a much larger company where it would be really hard to shift that net worth to the next generation without having to pay a large gift tax or estate tax,” he tells Wisconsin Business Voice.

And how does that transition help the

22 Spring 2018

elder generation prepare for their next step in life?

“A lot of times, their family net worth is tied up in the company,” Mike explains. “So, for the current generation to be able to have an enjoyable retirement, how does that get funded?

Is there going to be money available to pull out, so when the kids take over, the parents can live the type of life they want to live?”

What he stresses the most, though, is making sure a plan is in place sooner rather than later because unexpected events can change everything.

“It can be hard because they could have multiple kids and don’t know which one should take over, or they don’t know how to start the process of the transition or they don’t know when they will be ready,” Mike explains. “I’ve had a few occasions in my career, though, where somebody waits too long and then there is a problem. They might think there is always going to be tomorrow, and sometimes there isn’t.”

Typically it is sudden death in the family that puts a jolt into the planning process. Unfortunately, by that time, it might be too late. That is why he meets with clients regularly to figure how best to manage the process.

“It is really about getting an understanding of what their goals are and

wisconsinbusinessvoice.org | Cover Story

The Butz family didn’t always do everything perfect over four generations, but Jake likes to think they got most of it right. And when he looks at the company his family built, there is one word he uses more often than not: Pride.

“I have a very strong sense of ownership and pride in the company and the opportunity that I have as a fourthgeneration family business owner to continue to the legacy of the family that came before me,” Jake adds. “It is something I think about almost daily. I would not have this opportunity without the hard work and sacrifice of not only my dad, but my grandfather and my great aunt and uncle.”

And as one of the three percent of family-owned companies to make it into the fourth-generation, he credits a family who planned ahead and future generations that were willing to step up to the plate.

“The key each time the company was passed to the next generation was the fact that there was someone in the family who had enough knowledge, enough passion and enough dedication to take the helm, take on the risk and continue the business beyond the existing generation,” Jake concluded.

“If you do not have that, it can make it much more challenging to move from one generation to the next.”

So are they planning already for the fifth generation of owners at Bay Towel? The short answer is yes, but Jake says “I need to have kids first.” n Wisconsin Business Voice would like to thank Wegner CPAs for their support of this magazine and for providing valuable input about transitioning a family business. For more information or assistance with your succession planning, please contact Mike Steinl at 888-204-7665.

Top 10 Things to Think About in Transferring the Family Business

By Michael W. Steinl, CPA, CGMA Partner, Wegner CPAs

Y

ou’ve all heard the saying “failing to plan is planning to fail.” As a business owner, one of the most important and beneficial actions you can take is establishing a plan for the continuation of your business when you retire or in the event of an emergency such as an unexpected death or disability. Planning ahead allows the advantages of peace of mind, adequate training time for successors, financial security, and can significantly reduce family drama and conflict.

For most, this can be a very overwhelming topic and it is easy to put off because you don’t even know where to begin. Following are some key items to consider which will help you get started: 1. Plan ahead – Taking the time now to plan for your company’s future will help the transfer go smoothly for all involved. Start at least five years prior to your goal of departure.

2. Determine the real value of your company through an accurate valuation which will help you arrive at a realistic number.

3. Determine the income you’ll need to support your lifestyle and goals. Will you continue to work in the business at all? What portion of the proceeds from the sale will be yours? What ex-

penses will you now have to incur if you are no longer an owner? These are all things that need to be taken into account.

4. How can you structure the transfer to be the most advantageous for you? Will you be gifting the business? What about offering financing assistance to a family member who will be taking over or an outside buyer? Have you thought about retaining a portion of business assets to obtain an income from rent or other assets?

5. What type of impact will this have on the family members who are taking ownership?

6. Work on cleaning up the balance sheet and improve efficiencies.

7. Make sure you have solid financial controls and processes in place.

Accurate and reliable financial statements are far more attractive to future buyers – even if it is in the family.

8. Get a handle on your working capital aka “cash” in the business.

family members, tax implications need to be taken into consideration.

An estate tax is imposed when a transfer of property is caused by the owner’s death. A gift tax occurs when an owner of property transfers his property to another while he was still living, as a gift, meaning without receiving payment for the property.

Note - gift taxes vary from state to state. And with the passing of the Tax Cuts and Jobs Act on December 22, 2017, business owners who are thinking about transferring ownership to family members have the ability to transfer twice as much business value free of transfer tax than allowed in 2017 which can be very attractive for those involved.

10. Line up your team of accounting, tax, legal, and financial advisors to make this transition go smoothly and provide you savings and endless value in the long run. n For more information, contact Michael at (888) 204-7665 or mike.steinl@wegnercpas.com.

9. Depending on the choice of method that the business owner uses to pass along the family business to

Cover Story | wisconsinbusinessvoice.org

Spring 2018 23

UW System Restructuring A Positive Step Forward

By Dr. Ray Cross President, University of Wisconsin System

S

ignificant changes are taking place within the University of Wisconsin System. To meet the rapidly changing needs of the new economy and our communities, we cannot be the University on the hill. We must be the University next door.

These changes started with some hard facts. As business leaders know, Wisconsin faces very pressing demographic challenges. Over the next 30 years, 95 percent of Wisconsin’s population growth will be people age 65 and older. Conversely, the state’s population between the ages of 18 and 64—the traditional workforce years—is projected to remain essentially flat.

At the same time, demand for college-educated workers is stronger than ever and that demand is expected to grow significantly. The Georgetown University Center on Education and the Workforce projects that by 2020, 62 percent of jobs in Wisconsin will demand some post-secondary education.

The dilemma we all face is clear: While demographics indicate we will have fewer working-age adults in the state, we will need more of them to be college educated.

Employers are keenly aware of these projections. During listening sessions for our 2020FWD strategic plan, business and community leaders made it clear they want and need more employees who think critically, operate creatively, work collaboratively and possess an ability to adapt to change.

To help meet Wisconsin’s growing

24 Spring 2018

needs, it is imperative that we begin planning now and be increasingly bold in our efforts to get more students into and through the educational pipeline.

We must do this by improving access to higher education and keeping it affordable for students and families.

To that end, last fall I announced a plan to restructure the UW System’s 13 two-year UW Colleges campuses by integrating them with four-year UW

It is only by working together that we can make real progress toward a Wisconsin where our people, our communities, and our businesses can thrive. institutions. This plan allows us to keep all UW Colleges campuses open and maintains the important UW presence in your communities. We also know the two-year campuses serve as critical ac-

wisconsinbusinessvoice.org | Higher Education

cess points to higher education. They provide a UW education at a lower cost and serve as key transfer points to fouryear institutions.

Success in this economy depends in large part on a state’s capacity to educate its citizens. The UW System graduates more than 36,500 degree-holders every year. Our innovative thinkers also conduct the sort of research that can lead to the creation of companies that will mean jobs and contribute to the state’s economy.

The restructuring will improve student access to higher education, increase efficiency and better utilize our resources while maintaining affordability.

It will also help to create even more opportunities to align higher education with Wisconsin’s future workforce needs in high-demand areas such as engineering, health care and information technology.

Partnership and collaboration are key. It is only by working together that we can make real progress toward a Wisconsin where our people, our communities and our businesses can thrive.

This initiative positions the UW System to best meet the current and future needs of our students, employers, and the State of Wisconsin. It will keep Wisconsin moving forward. n For more information on the restructuring project, please visit wisconsin. edu/uw-restructure/.

Coming Back Home

By Wade Goodsell WMC Foundation Executive Director

A

s Bon Jovi once famously sang, ‘Who says you can’t go home?’

Some of you may recognize me from when I first started with Wisconsin Manufacturers & Commerce eight years ago where I worked in both membership and government relations.

When I left WMC in 2014 to pursue a new opportunity, I had no idea that I would be right back here in the same building just a short four years later. I am excited and honored to be back home at WMC, as the Executive Director of WMC Foundation.

I’ve already thoroughly enjoyed seeing so many familiar faces and old friends who remain an integral part of WMC’s staff and membership. However, I also quickly noticed the strong momentum throughout the organization. Let’s walk through three of the avenues we’re seeing momentum at WMC Foundation.

This year we’ve added a third site to our week-long Wisconsin Business World program. By adding a UWStevens Point site to our programs already at UW-Madison and St. Norbert College, we’ll be able to prepare more students for both college—whether it be technical or a four-year university— and a career. Through our economics and financial literacy education, I am proud to say that every student who participates in Business World is better prepared for the future and better equipped to understand our free enter-

prise system that plays a driving role in making the US economy the strongest in the world. In 2018, we anticipate educating close to 2,000 high school students through the Wisconsin Business World program.

The Future Wisconsin Project was initiated in 2013 by the WMC Foundation as a mechanism to bring business, government and education leaders together to identify and address the state’s economic challenges and opportunities. A major success of the Future Wisconsin Project was identifying

I am excited and honored to be back home at WMC, as the Executive Director of WMC Foundation. the need to brand and market the state of Wisconsin, not only to potential employers, but also to potential employees as we face the continued challenge of an aging workforce. In 2018, the State of Wisconsin heard the recommendation of the Future Wisconsin Project

and began a talent attraction campaign to market Wisconsin. For more on the exciting next chapter of the Future Wisconsin Project, I’d recommend reading Kurt Bauer’s article on page six.

Additionally, we are preparing safety, health and other professionals from across the state to be ready for safety issues that may arise in the workplace.

From falls and other accidents to the importance of proper ergonomics and CPR training, Wisconsin Safety Council is ensuring Wisconsin is home to the safest workplaces in the nation.

In 2018, the importance and demand for this training is highlighted by the record-setting amount of attendees at the annual Safety & Health Conference and Expo and increased trainings throughout the state.

It is an honor to be leading WMC Foundation, and I look forward to working with each of you. Needless to say, it is good to be back home onboard the WMC team! n Wade Goodsell became WMC Foundation Executive Director in March 2018. Previously, he was Membership and Government Relations Manager at WMC, Director of Business & Investment Attraction at the Wisconsin Economic Development Corporation and Business Development Manager at Baker Tilly.

WMC Foundation | wisconsinbusinessvoice.org

Spring 2018 25

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Business, Education Communities Team Up New Feature: Education Voice

T

here’s an app for that, as the saying goes, and it may have been developed by the App Factory at the University of Wisconsin-Parkside.

The App Factory allows Parkside students to apply their developing skills to solve real world problems. For example, the App Factory developed a mobile app that gives transit system riders in Kenosha, Racine and La Crosse easy access to bus schedules.

The App Factory also built an app for emergency response for most Wisconsin counties.

The App Factory gives students studying software engineering, graphic design, marketing and project management real-world experience and a little extra money in their pockets. Other clients include SC Johnson, Uline, Bradley, TriCore, the Racine Zoo and the Kenosha and Racine School Districts.

Those clients get affordable solutions and the Parkside students get practical

and marketable experience. But just as importantly, those students learn to work as a team and get an understanding of what an employer expects. About 90 students have worked for the App Store since it was founded, working on at least 31 projects and logging more than 20,000 hours developing software solutions.

The App Factory is just one example of how Parkside strives to give its students both high quality education and hands on experience. The campus, located between Racine and Kenosha, boasts excellent placement of its graduates in in-demand fields like physics, nursing, mathematics, health information management, technology, engineering and chemistry to name just a few.

Parkside is also gearing up to partner with Foxconn, which will place its massive manufacturing complex just a few miles from the university’s campus. n

Business leaders around Wisconsin know that in order to be successful, they must rely on a well-prepared workforce, and a major aspect of that preparation is Wisconsin’s K-16 education system. Whether a business is looking for someone with a high school diploma, post-secondary training or a degree from a technical college or four-year university, education is key to ensuring our workforce is ready for the challenges ahead.

At a state level, Wisconsin Manufacturers & Commerce works closely with educational leaders via the Future Wisconsin Project. However, local businesses and educational institutions are making an impact in communities throughout the state. The new Education Voice feature in Wisconsin Business Voice will regularly show how these two groups come together to better prepare students for the future while helping businesses do the same.

The first topic highlighted is UWParkside’s App Factory, but the ways that education and business work together are endless. Hopefully, this feature will inspire more business and education leaders throughout Wisconsin to work hand in hand to prepare for the future. n If you know of a local educational institution that should be featured for their work with the business community, please contact WBV editor Nick Novak at nnovak@wmc.org.

Education Voice | wisconsinbusinessvoice.org

Spring 2018 27

WMC, Local Chambers Take Second D.C. Trip L ocal chamber leaders, business executives from around the state and Wisconsin Manufacturers & Commerce (WMC) staff flew to Washington, D.C. for the second annual Wisconsin Chambers of Commerce D.C. Fly-In this past February.

WMC’s office sits just blocks from Wisconsin’s State Capitol, allowing staff to meet regularly with state policy makers on issues that will impact businesses. However, a trip to Capitol Hill in D.C. is not so simple.

That is why WMC and the Wisconsin Chamber of Commerce Executives (WCCE) plan the Fly-In each year to give local chambers and business leaders the opportunity to get briefed

28 Spring 2018

on federal issues and meet one-on-one with the state’s congressional delegation.

After a short flight on Southwest Airlines, participants attended a briefing with the U.S. Chamber of Commerce to hear about policy issues ranging from tax reform and health care to infrastructure and workforce.

The first night concluded with the Wisconsin Chamber Night Dinner, which included guest speaker Rob Engstrom, Senior Vice President and National Political Director for the U.S. Chamber.

Day two was a whirl-wind of activity that included a briefing with the National Association of Manufacturers,

wisconsinbusinessvoice.org | Washington DC Fly-In

a White House tour and a briefing from Alexander Acosta, U.S. Department of Labor Secretary. The afternoon was then filled with meetings with the Wisconsin Congressional delegation, including Speaker Paul Ryan, Sen. Ron Johnson and Sen. Tammy Baldwin.

The second annual trip was sold out with nearly 50 people from across the state participating. n If you are interested in participating in next year’s Wisconsin Chambers of Commerce D.C. Fly-In, please contact Susan Nyffenegger at 608-258-3400 or snyffenegger@wmc.org.

Thanks to our sponsor:

WMC President & CEO Kurt R. Bauer and other Fly-In attendees meeting with House Speaker Paul Ryan in his office.

Attendees waiting to enter The White House for a tour and briefing with U.S. Department of Labor Secretary Alexander Acosta.

Wisconsin Chamber of Commerce Executives (WCCE) members at the U.S. Chamber of Commerce for a federal policy briefing.

Fly-In attendees outside the U.S. Capitol before meetings with Wisconsin’s congressional delegation.

WMC President & CEO Kurt R. Bauer with U.S. Department of Labor Secretary Alexander Acosta.

Washington DC Fly-In | wisconsinbusinessvoice.org

Spring 2018 29

Teel Plastics Chairman & CEO and WMC Chairman of the Board Jay Smith with WEAC President Ron Martin.

Assembly Speaker Robin Vos with Mary Ellen Kanthack, 2018 Wisconsin Teacher of the Year.

Unlikely Partners Bond Over Statesmanship

L

ooking through the eyes of a Wisconsin political analyst in 2011, one would say it was impossible. Some would potentially call it “fake news.”

Fake news it is not. The state’s largest teachers’ union—Wisconsin Education Association Council (WEAC)—and the state’s largest business association—Wisconsin Manufacturers & Commerce (WMC)—joined together in January 2018 for the inaugural Wisconsin Statesmanship Reception.

The event aimed to take the first step at bridging political divisions in the state. Yes, both organizations disagree on a wide range of policy issues, and that is unlikely to change anytime soon. However, disagreeing over public policy does not mean each side needs to be plain disagreeable.

The Statesmanship Reception was

30 Spring 2018

attended by roughly 150 business and education leaders, agency officials, legislators and other individuals.

“Statesmanship is an important subject,” said Jay Smith, Chairman and CEO of Teel Plastics and WMC Chairman. “There were a lot of people from education, there were a lot of people from government and there were a lot of people there from business. Going forward, it is our goal to get these three elements working together in a better way.”

WMC and WEAC both participated in the event with Godfrey & Kahn, who hosted the event, and Ariens who was a presenting sponsor.

“There is an awful lot of strength when government, business and education combine their efforts and try to work together,” Smith added after the event. n

wisconsinbusinessvoice.org | Wisconsin Statesmanship Reception

WMC Senior Director of Advocacy & Membership Jim Pugh, Senate Minority Leader Jennifer Shilling, WMC Director of Technology Lara Hart, WMC Director of Environmental & Energy Policy and General Counsel Lucas Vebber and Flexion Chief Strategy Officer and WMC Small Business Committee Chair Aaron Powell (left to right)

Voting for Foxconn: Q&A with Rep. Jason Fields

R

ep. Jason Fields (D-Milwaukee) was one of four Democrats who voted in favor of the incentive package to bring Foxconn to the state.

As someone who is typically on the opposite side of Republicans who mostly voted for the legislation, Wisconsin Business Voice asked Rep. Fields to discuss why he supported the plan and how he thinks it will impact Wisconsin, the state’s workers and the City of Milwaukee.

WBV: What was the main reason you voted for the incentive plan that helped bring Foxconn to Wisconsin?

Fields: I view these decisions with a Milwaukee focus, understanding if Milwaukee succeeds, Wisconsin succeeds.

I voted for the project to help address a workforce issue that significantly affects my district and Milwaukee as a whole, creating opportunities for unemployed and underemployed individuals.

We have to focus on creating more jobs and worker training, working collaboratively with stakeholders to come up with targeted, creative solutions. The workforce impact reaches beyond the Foxconn campus, including the supply chain and the indirect impact Foxconn

can have on entrepreneurs and our tech landscape.

In the final analysis, I saw this as an economic opportunity that create jobs for the people I represent and will facilitate a positive change in our region, creating a culture of pride as a leader in economic advancement and growth.

WBV: What do you think is the statewide impact of Foxconn building a LCD production facility in Wisconsin?

Fields: Two of the biggest opportunities come from business partnerships in the supply chain and the facility construction. From construction and operations, Foxconn expects to make $1.4 billion in purchases from Wisconsin businesses. I believe we will continue to see businesses statewide looking to become a supplier for Foxconn. I am focused on connecting businesses in my district and Milwaukee, including minority owned businesses, to the resources available.

Additionally, the project is expected to support 10,000 construction jobs over each of the next four years as well as 6,000 indirect jobs from the construction. I am working to facilitate adding minority contractors and workers to the project. These business relationships help forge partnerships that can be beneficial to communities, businesses and workers throughout Wisconsin for years to come.

WBV: How will Milwaukee’s economy be impacted by Foxconn?

Fields: In addition to the supply chain and construction opportunities, we have seen the beginning of a strong partnership with Milwaukee and Foxconn when downtown Milwaukee was chosen as

the site for Foxconn’s North American Headquarters, Foxconn Place. Foxconn Place will serve as the hub for operations and house the Wisconn Valley Innovation Center, which is expected to include venture capital activities and start-up initiatives.

I am excited by the prospects and will continue to work with stakeholders to maximize the economic opportunities for businesses and workers. When residents are placed in positions of opportunity with employment, the community impact is more investment in the form of commerce, taxes, and a population in a position to transform itself via more successful residents.

WBV: Do you believe individuals who are unemployed or underemployed in the City of Milwaukee will benefit from Foxconn? How? Fields: Yes. I have been meeting with partners such as Foxconn, some Milwaukee non-profit organizations, and Milwaukee County to find solutions to the workforce challenges that people in Milwaukee face, focusing on methods to encourage hiring Milwaukee workers.

I consistently hear from people in these situations that transportation challenges significantly limit their employment options which is why reliable, frequent public transport is a necessity. I am working with partners to find transit solutions like funding expanded bus lines from Milwaukee County to the Foxconn facility. We are also looking at methods to duplicate systems like "The Joseph Project", where we have a partnership with organizations to provide transportation as well as services to ensure the success of participants. n

Legislative Voice | wisconsinbusinessvoice.org

Spring 2018 31

Helping Every Student Find Success

By John Ashley Executive Director, Wisconsin Association of School Boards

S

trong public schools are the bedrock of our communities, our democracy and our economic vitality. A diverse, educated workforce makes our society and our national security stronger.

Public schools are continually asked to do more than ever, from state-of-the-art career and technical training to meeting the needs of an ever-increasing number of low-income students and, of course, ensuring the safety of our students.

Resources are always an issue and we are grateful to the businesses that have partnered with their local schools to provide critical investments.

Public school leaders are doing their best to keep one eye on the present and what their current graduates need now and one eye on the future as they assess what their kindergartners will need to be competitive when they graduate as we enter the technology-driven, fourth Industrial Revolution.

Starting this year, every public school student in grades 6-12 in Wisconsin must have an academic and career plan to guide their course of study. These are not static documents. They will be developed in consultation with parents and school counselors and follow the student if they move to another district.

As we’re preparing students to meet the needs of today’s workforce, futurists tell us to expect that many jobs (and even industries) we rely on today may soon cease to exist or will be radically altered and that the depth and breadth of changes are likely to disrupt labor

32 Spring 2018

markets and governance systems at a rate of change unprecedented in history.

To meet that challenge, public school leaders know we need to build an entrepreneurial generation that values lifelong learning and can be adaptive, innovative and responsive to real-world, unpredictable situations. Schools can’t do it alone.

We need the support and input from our communities, business leaders, civic organizations, and state and federal policy makers to shift the focus away from standards and testing to building a culture of learning that places as much emphasis on non-cognitive skills (our attitudes and behaviors) as it does on academic skills.

We’re excited about the opportunities public schools are creating and the innovative ways they are finding to prepare students for our rapidly changing world.

Programs like Three Lakes’ Fab Lab— one of the first K-12 Fab Labs in the nation; Wautoma’s recently announced

wisconsinbusinessvoice.org | Career Planning

expanded collaboration with Fox Valley Technical College to build a facility based on an "innovative K-14-like concept;" or Kettle Moraine’s High School of Health Sciences they launched a few years ago with local medical partners to give students a comprehensive and indepth academic education paired with real-world experience are just a small sampling of what’s happening in Wisconsin public schools today.

But we know there is much more work to be done. A recent WMC economic survey found that 80 percent of the state’s business leaders reported difficulty finding workers and we hear anecdotally that our students need more help developing their soft skills.

What can you do to make a difference? If you haven’t already, get involved in your local public schools. In addition to financial support, school leaders need your insight about what your needs are today and what they will be 20 years from now. Meet with school board members, staff and students to talk about your business and how it contributes to the community. Offer internships, job shadowing or other mentoring opportunities to provide that real-world experience. Find a program —large or small—that interests you to lend your expertise.

We all have the same goal—sustaining strong, vibrant communities where people want to live and work. Together, we can achieve that goal and give every student an opportunity to succeed. n

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With a care package of solutions, including advanced aqueous technologies, like Mirachem Ultrasonic XL, help with cleaning applications throughout the facility, a full range of environmental services, and great service and support, it wasn’t long before this plant started riding a new sound-wave of productivity.

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wisconsinbusinessvoice.org

33 Spring 2018 ©2016 CSS-1582

35 Years of Business Education

By Jack Orton Director of Business World

T

he Business World Summer Program is WMC Foundation’s flagship business education program. Every summer, the program organizes multiple exciting, and often times, rigorous four-day overnight summer camps for high school students.

This year, the Business World program is organizing three summer programs on the campuses of St. Norbert College, UW-Madison, and UW-Stevens Point.

The Wisconsin Business World Program was established in 1983. For thirty-five years, we have held overnight educational summer programs on college campuses across the state, each designed to take an in-depth look at various aspects of business from competition, to ethics, to marketing, to research and development. Students are thrust into the driver’s seat of a hypothetical company that they, along with their classmates, navigate through

34 Spring 2018

a series of real-world obstacles.

On each of the four days, the students compete against each other in a series activities while listening to business leaders from across the state address the topics of financial literacy, business ethics, and career development. On the fourth day, students present themselves and their companies in a “Shark Tank” style presentation in front of various Wisconsin executives and professionals. The entire experience is give students a first-hand look at what it takes to run a business.

In 2017, over 200 students from 105 different communities participated in the Business World Summer program.

We held our programs on the campuses of St. Norbert College in De Pere and Edgewood College in Madison.

This year, Business World is celebrating thirty-five years of business education - thirty-five years of teaching and grooming Wisconsin’s future business

wisconsinbusinessvoice.org | Business World

leaders. And, over the past three decades, more than 20,000 students have participated in our events. Our alumni span the country and make up every aspect of professional life.

And, for the first time in over a decade, the Business World program will be holding three summer programs. We have added UW-Stevens Point to our ranks in an effort to encourage more participation from communities that have not yet attended our events. But, we are always interested in more. We are always looking for more volunteers and support to help us with our programming. n If you are interested in supporting the Business World program, please contact the program’s director, Jack Orton, by phone (608) 661-6904, or via email at jorton@wmc.org for more information.

Thank You to Our Business World Sponsors Diamond Sponsors Foundation

Platinum Sponsors

Gold Sponsors Dr. Makeba and Damond Williams Boatwright Charitable Fund

Silver Sponsors

Bronze Sponsors Bank of Mauston Cristo Rey Jesuit High School

Kudick Chevrolet Buick Master Mold

Omro Thrift Store

Local Chambers Beaver Dam Area Chamber of Commerce Greater Brookfield Chamber of Commerce Eau Claire Area Chamber of Commerce Elmbrook Rotary Fennimore Area Chamber of Commerce Fort Atkinson Area Chamber of Commerce Forward Janesville, Inc. Greater Tomah Area Chamber of Commerce

Juneau County Economic Development Corp.

Kenosha Area Chamber of Commerce The Chamber of Manitowoc County Marshfield Area Chamber of Commerce & Industry Merrill Area Chamber of Commerce Middleton Chamber of Commerce Oconomowoc Area Chamber of Commerce Oregon Area Chamber of Commerce

Prairie du Chien Area Chamber of Commerce Rhinelander Area Chamber of Commerce Rice Lake Area Chamber of Commerce Rusk County Economic Development Sparta Area Chamber of Commerce Waukesha Business Alliance Waupaca Area Chamber of Commerce West Bend Area Chamber of Commerce

Business World Sponsors | wisconsinbusinessvoice.org

Spring 2018 35

Bringing Business World to Your Community

By Jack Orton Director of Business World As I mentioned on the previous page, Business World is the high school economics and talent development branch of WMC Foundation. We partner with high schools, community leaders and chambers of commerce to organize local business education events as well as encourage student participation for our week-long summer flagship program.

For the next few months, Business World, through its “Mini” program events, will be spreading its message of entrepreneurship and free market enterprise to high school students all across the state. It’s a program that is constantly evolving and adapting to accommodate the modern student, but remains steadfast in its commitment to the teaching of financial literacy, business ethics and free market capitalism.

What is “Mini” Business World?

In essence, the Business World program has two primary components:

36 Spring 2018

our multiple-night summer flagship program, as well as our single day “Mini” Business World events. “Mini” Business World is the condensed version of our summer program, localized in a specific region of the state.

Over the course of a regular school day, students traverse the Atlantic and learn about the humble, medieval beginnings of the free-market system in Holland; they meet some of history’s great thinkers and towering leaders like John Locke and Adam Smith; and they experience first-hand, what it takes to run a business through a series of realworld obstacles.

As a result, participants gain a greater appreciation for what it takes to run business, but more importantly, they understand the critical role Wisconsin has played and continues to play in the global economy.

Our spring is already jam-packed with “Mini” programs spanning the length

wisconsinbusinessvoice.org | Business World "Mini" Program

of the state – ranging from places like Wausau to Waukesha to Monroe. In total, over 500 students from more than 20 communities have participated in programs since the school year started last September. And, we’re not done yet!

We still have several events planned before our summer schedule begins.

Since its creation, communities all across Wisconsin have sought out the “Mini” Business World program as a way of furthering their students’ business education and talent development.

Hundreds of students from communities of all shapes and sizes have sponsored the “Mini” Business World program. But, we are always looking for more! n If you are interested in supporting the Business World program, or bringing the “Mini” program to your community, please contact the program’s director, Jack Orton, by phone (608) 661-6904, or via email at jorton@wmc.org for more information.

Business World "Mini" Program | wisconsinbusinessvoice.org

Spring 2018 37

The Future Workers Tax Credit

By Dr. Rolf Wegenke President and CEO, Wisconsin Association of Independent Colleges and Universities

F

or Wisconsin to be competitive in the Knowledge Economy, we must address the present-day and future workforce crisis caused by an aging workforce, historically low birthrates, and net out-migration. It is often said that the first step in addressing any challenge is to acknowledge that you have a problem. We can check off that step. Leaders in government, business and education "get it."

Here is the rub: even if our strategies for expanding education and training for current Wisconsin residents succeed beyond expectation, we still will not have enough qualified, homegrown workers for high-end jobs. By 2040, almost one-quarter of Wisconsin's population will be 65 or older. The growth in that age category will be over 95 percent. Those in the cohort of ages 18 to 64 are projected to grow by only 0.1 percent. Without in-migration of educated workers, Wisconsin will increasingly fall behind.

The governor and legislature have taken a bold step through the "Think/ Make/Happen" campaign, in particular reaching out to millennials in Chicago.

Campaigns like this tell our story, but we also need to drill down to matching specific career interests of specific individuals with specific industries. The pathway to get this done runs through the campuses of our colleges and universities. Most university graduates end up living and working within 100 miles of their alma mater. Everyone knows of individuals who have come

38 Spring 2018

to study in this wonderful state and ended up remaining here. Employers, more than the state government, can make a difference in bringing the best and the brightest to Wisconsin. This is not an issue of current residents versus future residents. We need both. Grants to students are the most effective way to increase educational attainment, but, state student aid for out-of-state students is a "nonstarter" politically.

However, I believe that Wisconsin employers, with the incentive of a state "Future Worker Tax Credit" could get this job done (The name, "Future Workers Tax Credit," honors WMC's “Future Wisconsin Summits”). A "Future Workers Tax Credit” would provide incentives to employers to invest in education and training of individuals (future workers), empowering employers, rather than government, to determine the skills and

wisconsinbusinessvoice.org | Workforce

abilities they most need.

Here’s how it would work: The "Future Workers Tax Credit" would provide Wisconsin employers with a tax credit equal to 50 percent of the tuition they pay for any individual to attend a Wisconsin public or private, nonprofit college, university or technical college. The credit would rise to 75 percent for individuals in fields identified by the Department of Workforce Development as being of critical importance to the state or for students eligible for federal Pell Grants (i.e., students with financial need).

My proposal provides an incentive for the private sector to invest in a way that will expand the talent pool for Wisconsin, and, more specifically, for their own companies. Equally important, the credit would give employers the ability to increase the supply of skills they actually need, rather than government picking winners and losers. In addition, employers would have four years to build relationships with participating students (e.g., with internships).

Approximately 73 percent of students with internships while in college end up getting a job offer where they interned.

It would be up to the colleges and universities to recruit in-state and out– of-state students meeting the employer's criteria (major, income strata, critical occupations). The employer would then pay the tuition and claim the credit on their next return.

In sum, we know the problem. The “Future Workers Tax Credit” can be part of the solution. n

W M C STA F F N E W S Robert Baker Account Executive WMC Group Benefits Robert Baker joined WMC Group Benefits in March. He has 19 years of experience in the insurance industry. He has worked for medical and ancillary insurance carriers. Robert specializes in group employee benefits. His responsibilities will be to grow and retain business for WMC members.

Robert will work with WMC members to ensure they are taking full advantage of the insurance options available through WMC Group Benefits.

Bob Benitez Membership Development Manager WMC Robert Benitez comes to WMC as a Membership Development Manager. Prior to coming to WMC , Bob served as a business development consultant to a Commercial Solar Company, and served as a Membership Executive with the Greater Madison Chamber of Commerce. He will work with current and prospective members to ensure they are receiving and understand all the benefits of being a WMC member.

Leigh Price Membership Development Manager WMC

Wade Goodsell returns to WMC as the Executive Director of WMC Foundation. Prior to returning to WMC, Wade served in a consulting and business development capacity for Baker Tilly and as a Business Attraction Director for the Wisconsin Economic Development Corporation (WEDC). While at WEDC, Wade was recognized as one of North America’s Top 50 Economic Developers in 2016. Wade began his career at WMC working in membership and government relations.

Leigh Price joined WMC in March as a Membership Development Manager. She has more than 20 years of experience in sales and marketing. Prior to joining WMC, Leigh served as Executive Director of the Jefferson Chamber of Commerce. Her previous experience also includes Director of the Johnson Creek Chamber of Commerce and as a National Sales Representative for Reader’s Digest. She will work with current and prospective members to ensure they are receiving and understand all the benefits of being a WMC member.

HEALTH CARE

environment ENERGY TRANS PORTATION human resources

TAXES economic

education

Wade Goodsell Executive Director WMC Foundation

CIVIL JUSTICE

SAVE THE DATE! WORKFORCE

POLICY DAY 2018

AUGUST 6, 2018

Monona Terrace Convention Center, Madison For sponsorship opportunities, contact Brittany Rockwell at WMC, (608) 661-6917 or brockwell@wmc.org

Focusing on Wisconsin’s Supply Chain

A

sold-out crowd of 250 manufacturers and other business leaders joined together on an early morning in Milwaukee this past February to learn more about an issue that seems to have the whole state buzzing: supply chain management.

The biggest draw may not have been the topic itself, but the individuals speaking at the event. Two supply chain experts from Marquette University and UW-Milwaukee explained the ins and outs of developing a brand new supply chain. Also participating in the event were Jela Trask, Business & Investment Attraction Director and Key Business Liaison for the Wisconsin Economic Development Corporation (WEDC), and a representative from Foxconn Technology Group.

And they, of course, related almost everything back to the newest and biggest player in Wisconsin, Foxconn.

Foxconn’s massive LCD production facility that is being built in Mount Pleasant will serve as the center of a brand new supply chain in Wisconsin.

This supply chain will be much larger than any other in the state, however.

Oshkosh Corporation, which manufactures things from military vehicles to fire trucks, currently has the largest supply chain in Wisconsin at $300 million in purchases. Foxconn intends to make purchases from Wisconsin companies totaling $1.4 billion.

This is why WMC Foundation felt it was necessary to pick “supply

40 Spring 2018

chain management” as the topic for the 2018 Focus on Manufacturing Breakfast, hosted at The Pfister Hotel on February 23.

Foxconn’s Director of U.S. Strategic Initiatives Alan Yeung told the audience at the event that things are going to move quickly and he is going to need businesses from all walks of life to be a part of the new supply chain.

"When we are ready, we're going to move very quickly and we're going to have to rely on your help and support to actually move at our speed," Yeung said at the WMC Foundation event. "We want to work within the process and the system and really get things going."

Luckily, businesses have a great resource in Trask at WEDC to find out how they can get involved with the

Supply chain management is the most promising driver of profitability and supporter of growth initiatives that anybody can identify. tech manufacturer.

"I get up to five to six calls a day and emails from companies across Wisconsin that want to better understand how to connect with this opportunity," Trask said during the panel discussion.

"We have the companies here. How to connect them to the Foxconn opportunity is what we’re working on every day."

Dr. Doug Fisher, Director of the Center

wisconsinbusinessvoice.org | Focus on Manufacturing Review

for Supply Chain Management at Marquette, kicked off the event with an informative keynote address about the new importance of a supply chain and how manufacturers and businesses are preparing for the future.

“Supply chain management is the most promising driver of profitability and supporter of growth initiatives that anybody can identify,” said Fisher. “It is being used now as a strategic weapon, not what it was when I grew up which was basically a necessary cost, now it’s being used to drive business.”

During the panel discussion, Dr. Anthony Ross, Professor of Supply Chain Management and Rockwell Automation Endowed Chair at UW-Milwaukee, expressed the importance of business and education working together to make sure everyone is ready for what is around the corner.

“We are educating people and trying to prepare people to solve problems that potentially do not exist, using technologies and tools that have not been developed yet," he said. "I think there’s a real opportunity for industryuniversity partnerships to really be sure we don’t lose the keys." n The Focus on Manufacturing breakfast is an annual event hosted by WMC Foundation. For more information about this year’s event or to get involved in next year’s program, please contact WMC Foundation Executive Director Wade Goodsell at 608-258-3400 or wgoodsell@wmc.org.

WMC President & CEO Kurt R. Bauer delivers remarks at the sold-out Focus on Manufacturing Breakfast, hosted by WMC Foundation, in Milwaukee.

Panelist discuss the impact of Foxconn in Wisconsin and the importance of supply chain management.

WEDC’s Jela Trask, UW-Milwaukee’s Dr. Anthony Ross, Foxconn’s Dr. Alan Yeung (left to right) participate in the panel moderated by the Milwaukee Business Journal’s Mark Kass (right).

Marquette University’s Dr. Doug Fisher giving the keynote address about supply chain management to a packed house of 250 business leaders at The Pfister Hotel.

Focus on Manufacturing Review | wisconsinbusinessvoice.org

Spring 2018 41

Powering Profitability A recent study of Wisconsin’s Focus on Energy program over a twoyear period shows a great return on investment.

Focus on Energy works with eligible Wisconsin residents and businesses to install cost effective energy efficiency and renewable energy projects on behalf of 108 electric and natural gas utilities.

Energy savings from completed projects coupled with positive impacts across the state’s economy produced a $4.77 return for every dollar invested during 2015 and 2016.

The Cadmus Group, an independent third party evaluator, released these findings in a report to the Public Service Commission of Wisconsin in January.

Energy efficiency not only lowers energy bills for Wisconsin manufacturers, it reduces our overall fuel dependency from other states.

42 Spring 2018

Focus on Energy investments generated $208 million in economic benefits in 2015 and 2016; and annually supported more than 1,200 jobs during that two-year period.

Other findings in the report include: • Focus on Energy investments in 2015 and 2016 will create economic benefits totaling $762 million for Wisconsin ratepayers by 2040.

• Focus on Energy invested more than $170 million in incentives and technical assistance for Wisconsin businesses and residents in 2015 and 2016.

• The largest share of jobs supported by the program are in manufacturing.

Focus on Energy resources, technical support and financial incentives help to implement projects that otherwise would not get completed, or years before otherwise planned.

“A $4.77 return on investment shows

wisconsinbusinessvoice.org | Paid Advertisement

Focus on Energy is one way Wisconsin encourages economic development and grows its favorable business climate,” said Public Service Commissioner Lon Roberts.

“When a business saves money by saving energy, it also becomes more globally competitive,” Commissioner Roberts added.

Looking forward, the study estimated that investments made in 2015 and 2016 will have an impact of another $23 million per year ($554 million) from 2017 to 2040. n To learn more about how your business can utilize this economic tool, search for equipment incentives, or talk to an Energy Advisor visit www.focusonenergy.com/business.

Oshkosh Corporation

Automation Components, Inc.

Nicolet Plastics, LLC

Exact Sciences Corporation

Manufacturers Honored with Prestigious Awards S even Wisconsin companies were awarded prestigious Wisconsin Manufacturer of the Year Awards for outstanding achievements in manufacturing. The winners were announced Thursday, February 22 at a black-tie banquet honoring the 23 nominees.

The annual Manufacturer of the Year Awards Program recognizes Wisconsin companies that demonstrate a commitment to business excellence, which has a positive impact on the company and the state, making Wisconsin a better place to live, work and play.

"Manufacturing is what built the middle class and drives Wisconsin's economy," said Kurt R. Bauer, President/CEO of Wisconsin Manufacturers & Commerce. "We are proud to recognize these companies for the immense impact they have on their local communities and the State of Wisconsin."

In its 30th year, the Manufacturer of the Year Awards Program recognizes

companies of all sizes for all they do to drive Wisconsin's economy. Companies were evaluated in areas such as financial growth or consistency, technological advances, product development, environmental solutions and sustainability, operational excellence and continuous improvement, commitment to employees and effective research and development. Award winners were selected by an independent panel of judges.

Four Grand Award winners, categorized by number of employees, were recognized for impeccable performance. This year, three companies were also honored for awards in special categories, including exceptional growth and service, enterprise-wide precision and global brand growth.

The Manufacturer of the Year Awards is sponsored by Wisconsin Manufacturers & Commerce, Michael Best & Friedrich LLP and Baker Tilly. n

30th Annual Wisconsin Manufacturer of the Year Award Winners:

Grand Awards: Small Category: Nicolet Plastics LLC, Mountain Medium Category: Automation Components Incorporated, Middleton Large Category: Linetec, Wausau Mega Category: Oshkosh Corporation, Oshkosh Special Award Winners: Global Brand Growth: Carnivore Meat Company LLC, Green Bay Exceptional Growth and Service: Exact Sciences Corporation, Madison Enterprise-wide Precision: iMARK Molding, Inc., Woodville

Manufacturer of the Year | wisconsinbusinessvoice.org

Spring 2018 43

Rajan Sheth Honored for Lifetime Achievement F or 20-plus years, Rajan Sheth has been at the helm of Mead & Hunt— an engineering and architecture firm based in Middleton, Wisconsin with offices around the country. Since being named CEO and Chairman of the Board, Mead & Hunt has grown from two to more than 30 offices and from 130 employees to 650. Additionally, revenue has increased tenfold, from $10 million to $108 million annually.

In February, Sheth was honored by InBusiness Magazine as an Executive of the Year and was given a Lifetime Achievement award.

To achieve his goals, Sheth argues that he doesn’t believe in leading from behind, but instead, he walks with employees.

“My recipe for success?” he asks.

“Focus on your people by letting each do what each is best qualified to do.

Work to better execute every project.

Continuously improve operations.

De-emphasize industry comparisons by setting the bar for improvement against your last high.”

In addition to positive growth, Sheth has also ensured Mead & Hunt is involved in its community and encourages employees to give back. The company provides financial incentives and paid time off to employees who volunteer for nonprofits.

“One of our employees did some engineering work for the Humane Society shelter, not in Dane County but in Iowa County, and one of our employees did some work at Hoyt Park in Madison,” Sheth told InBusiness. “One went to Bolivia to work on a water supply project, and I can go on and on. That’s a big part of our culture, that we want to be a good corporate citizen wherever we are.”

Sheth plans to step out of the CEO vote in the near future, but has no plans to call it quits. He will continue to be involved with the company as Chairman of the Board. Sheth has been a member of the WMC Board of Directors since 2008, and is very active with the University of WisconsinMadison College of Engineering and has served on the Dean’s Industrial Advisory Board since 2015. n

POWER YOUR PROFITABILITY

Providing Wisconsin manufacturers with technical and financial support to: • Retain manufacturing jobs • Reduce energy waste • Remain globally competitive

• FOCUSONENERGY.COM/BUSINESS 44 Spring 2018

wisconsinbusinessvoice.org | Executive Profile

WMC SEEN & HEARD

WMC Director of Health & Human Resources Policy discusses legislation being considered at the State Capitol with WISC-TV, the CBS affiliate in Madison.

WMC Director of Environmental & Energy Policy and General Counsel Lucas Vebber speaks with Milwaukee’s TMJ4— the NBC affiliate—after a public hearing relating to the new Foxconn plant being built in Mount Pleasant.

WMC Director of Small Business Advocacy Brittany Rockwell with Small Business Administration Administrator Linda McMahon at roundtable discussion in Milwaukee focused on federal regulations.

WMC staff and local chambers who participated in the second-annual Washington, D.C. Fly-In meet with U.S. Senator Tammy Baldwin.

Gov. Scott Walker with WMC staff and board members at the Manufacturer of the Year Awards: (from left) WMC Director of Health and Human Resources Policy Chris Reader, Seneca Foods Vice President and COO Paul Palmby, WMC Senior Vice President of Government Relations Scott Manley, Sargento CEO Louie Gentine, Gov. Scott Walker, Oshkosh Corporation President & CEO Wilson Jones, WMC Director of Environmental & Energy Policy and General Counsel Lucas Vebber and WMC Director of Small Business Advocacy Brittany Rockwell.

WMC Seen & Heard | wisconsinbusinessvoice.org

Spring 2018 45

Wisconsin’s West Coast, Prairie du Chien

By Bob Moses President/CEO, Prairie du Chien Area Chamber of Commerce

W

hen you think of the west coast, one might imagine warm temperatures with miles of white sandy beaches. The endless expanses of the fine, golden sand on our country’s West Coast might be among the most breathtaking anyone can experience. But Wisconsin’s West Coast is equally stunning, a geological and biological wonder on the Mississippi River. Particularly in Prairie du Chien, the rivers and bluffs depict a colorfully serene landscape, where one can simply enjoy a good book about the history of the community, a cup of coffee from a local roaster or a glass of wine from an area vineyard.

These unsung pleasures make Prairie du Chien a hidden gem along Wisconsin’s West Coast. The unmatched beauty, world-class parks and recreational opportunities, wealth of history and Driftless food movement certainly support the economy.

What major businesses and compa-

CHAMBER FACT Prairie du Chien Two American presidents were once stationed at Fort Crawford, which was located at Prairie du Chien— Zachary Taylor (12th U.S. President) and Jefferson Davis (President of the Confederate States of America)

46 Spring 2018

nies may not know, however, is the vast opportunities for industrial and business development available in the community. Prairie du Chien is perfectly situated within short driving distance of not only spectacular scenic areas, but also educational hubs, a variety of transportation choices and larger cities, also along the state’s West Coast.

The county seat of Crawford County, Prairie du Chien and its area communities support a wide variety of businesses from automated sensor, abrasives and wood products manufacturing to specialty goat cheese production. A diverse range of small family farmers including dairy, beef, more than 12 apple orchards and a variety of diversified vegetable farmers also call the county home.

Prairie du Chien is a great place for business, be it a small business, manufacturing company startup or the expansion of an existing business.

Industrial parks provide opportunities for affordable development in the small community. A growing downtown is also a great place for visitors to shop and discover some delectable, locallygrown and locally-produced goods.

Prairie du Chien is unbeatable in terms of industrial transportation opportunities, including the Mississippi River port, rail service in all directions and highway access along the river and to and from Iowa. Commuter bus routes are also offered between the city and points throughout Crawford County and north to La Crosse.

To support the city’s vibrant manu-

wisconsinbusinessvoice.org | Chamber Voice

facturing industry and its abundant entrepreneurs—as well as general opportunity, research, arts and culture—a number of higher education options are readily available within 30 to 60 miles of Prairie du Chien. Workforce training and technical assistance is offered in key fields, such as welding, machining, computer programming, engineering, human services, etc. Employmentrelated services for adults, older adults, youth, veterans, ex-offenders and persons with disabilities are also available within the community.

Furthermore, Prairie du Chien’s commercial banks and lending institutions provide a variety of small and commercial business services. They are a great support system for local business’ needs such as equipment upgrades, revolving lines of credit and working capital loans. Area chambers of commerce as well as the local inventors and entrepreneurs club are additional resources that can assist any field's needs.

Prairie du Chien, along with its surrounding communities, has much to boast about in terms of assets, especially its excellent location, dedication to revitalization and economic development, and strong workforce. It’s a growing city that continues to draw new ventures in business and industry. We are enthusiastic about our diversity and progress. On behalf of the Prairie du Chien Area Chamber of Commerce, I invite you to Wisconsin’s West Coast to experience all that Prairie du Chien has to offer. n

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JOIN THE POOL TODAY AND SAVE! WMC Group Benefits insures more than 200 companies and over 15,000 employees. From small companies with 10 employees to those with a few thousand, WMC Group Benefits could save you on both premium and administrative costs. Join the pool today!

Russ Cain

Director of Group Insurance Services WMC Group Benefits 800-236-5414 ins@wmc.org All plans fully insured by

Current Products Offered: • Basic Group EE/Dep. Term Life/AD&D • Supplemental Group Accident • Long Term Disability • Optional Group EE/Dep. Term Life/AD&D • Supplemental Group Critical Illness • Leave Management • Short Term Disability • Supplemental Hospital Indemnity