Wisconsin Business Voice - Apr. 2017

WORKFORCE

MIDDLE CLASS

BUSINESS WORLD

JOHN FUND

Target Illinois

Manufacturing Built It

Capitalism vs. Socialism

WI Political Revolution

WISCONSIN

April 2017 Issue 24

Main Street From Shrinking Populations to Internet Dead-Zones, W h a t ’s N e x t f o r Rural Wisconsin?

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In This Issue...

WISCONSIN

April 2017 Issue 24

Main Street 20 6

F RO M T H E P R E S I D E N T Wisconsin Should Target Illinois Workers

15

I N N OVAT I O N I N E D U CAT I O N

What is a Fab Lab?

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M A N U FAC T U R I N G A N D AG R I C U LT U R E TA X C R E D I T

Manufacturing Jobs at Risk

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15

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30

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C OV E R STO RY: M A I N ST R E E T, W I

Tackling Rural Wisconsin’s Challenges

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2 018 E L E C T I O N P R E V I E W

Justice Michael Gableman

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BU S I N E S S DAY I N M A D I S O N

Event Garners National Media Attention

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RA N K I N G T H E BA D G E R STAT E

How Does Wisconsin Measure Up?

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MEMBER NEWS

36

M A N U FAC T U R E R O F T H E Y E A R AWA R D S

Wisconsin Companies Make Fortune Top 100

Seven Companies Get Recognized

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MADE IN WISCONSIN

From Cheese to Plastic…

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W M C G O E S TO WAS H I N G TO N

Local Chambers Partner for DC Trip

wisconsinbusinessvoice.org

April 2017

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CONTRIBUTERS

WISCONSIN

President/Publisher

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8

S TAT E S U P R E M E C O U RT

L E G I S L AT I V E AGENDA

By Scott Manley

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13

Nick Novak

Art Direction/Production

33

Contributing Writers

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BUSINESS WORLD

M A N U FA C T U R I N G SOLUTIONS

By Jack Orton

By Caralynn Nowinski Collens

14

Managing Editor

By Jim Pugh

WMC F O U N D AT I O N

By Kari Hofer

TA X POLICY

By Jason Culotta

Kurt R. Bauer

Jayne Laste Design

Kurt R. Bauer, Nick Novak, Scott Manley, Jason Culotta, Jack Orton, Chris Reader, Caralynn Nowinski Collens, John Fund, Lara Hart, Kari Hofer, Jim Pugh, Melissa Reichert, Brittany Rockwell, Chad Tisonik, Lucas Vebber, Ben Niehaus, Don Sidlowski

Advertising Sales Nick Novak, nnovak@wmc.org

35

R E G U L AT O RY REFORM

CYBERSECURITY

By Lara Hart

By Lucas Vebber

38

16

WISCONSIN SAFETY COUNCIL

SMALL BUSINESS

By Brittany Rockwell

By Chad Tisonik

17

46 W E A R E T H E H E A RT OF WISCONSIN

By Melissa Reichert

HUMAN RESOURCES

By Chris Reader

24 WISCONSIN POLITICS

By John Fund

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 @WisconsinMC

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April 2017

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F RO M T H E P R E S I D E N T

Wisconsin Should Target Illinois Workers

By Kurt R. Bauer

F

or the record, I do not hate Illinois. My dad is from Chicago and I grew up in Beloit, which is so close to the Illinois border that its sister city, South Beloit, is in the Land of Lincoln.

I don’t even hate the Bears. Why would I? The Packers nearly always beat them.

And I must confess to cheering for the Cubs in last year’s World Series.

In fact, my first baseball cap was blue with a red “C” on the front of it, and my first Major League Baseball game was at Wrigley Field (I was six and I got lost).

My point is that I do not have anything personally against our neighbors to the south. But I do see the Land of Lincoln as a land of opportunity for Wisconsin, if we are willing to take advantage of Illinois’ considerable woes.

For those who may not know, here is a summary of how bad things have become below the Cheese Curtain.

• Last year, 762 people were murdered in Chicago, a 58 percent increase from 2015.

• Illinois has a $7 billion budget deficit and its Republican governor and Democrat-led legislature haven’t

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“I do see the Land of Lincoln as a land of opportunity for Wisconsin.”

passed a comprehensive budget in 21 months.

• Illinois has $129.8 billion in unfunded state pension liability.

• Its bond rating is the lowest of the 50 states and near junk status.

• The state government owes vendors $10.8 billion.

• Politicians at all levels of government are proposing fee and tax increases. At the state level alone, lawmakers are considering a corporate rate hike and adding currently exempted services to the sales tax.

• Chicago and Cook County have enacted minimum wage and paid sick time laws, which along with tax increases, drive up the cost of doing business there.

• At 5.4 percent, Illinois’ unemployment rate is the highest in the Midwest (Wisconsin’s rate is 3.7 percent; the U.S. rate is 4.7 percent).

• A Gallup poll, conducted in March, found that 75 percent of the people living in Illinois have no confidence in state government.

Not surprising, many businesses are leaving Illinois and so are its citizens.

Illinois lost more population than any other state between 2013 and 2016, according to the U.S. Census Bureau.

Last October, a scientific poll conducted by Southern Illinois University found that 47 percent of Illinoisans would like to leave the state.

Therein lies the opportunity for Wisconsin.

Our state has a workforce shortage.

Baby boomers dominate the workforce, but they are either at or fast approaching retirement age. Our birth rates are below replacement levels and since 2008, more people have left Wisconsin than have moved in.

Through the Future Wisconsin Project, the WMC Foundation has worked with stakeholders like the K-12s, technical colleges, four-year public and private colleges, young professional groups, local chambers and multiple state government agencies on efforts to retain as many born and raised Wisconsinites by exposing

F RO M T H E P R E S I D E N T

“Wisconsin cannot afford to remain the best kept secret in the Midwest.” them to the great career options our state’s economy has to offer.

But even if you put a wall around the state to keep everyone here from leaving, Wisconsin would still have a workforce problem. The bottom line is that we need people to move to Wisconsin.

Immigration is a federal issue and largely out of our control. Within our control is the ability to market Wisconsin’s career choices, quality of life, low cost of living, great communities, high performing schools and diverse

recreational activities, and the primary target should be the people of Illinois.

After all, many of them are already leaving. Why not have them come to Wisconsin?

But it won’t happen on its own.

Wisconsin cannot afford to remain the best kept secret in the Midwest. That is why WMC commissioned a video called, “Wisconsin: A Great Place to Get Started,” to highlight the state as an ideal location for startup companies and for coveted Millennial talent (go

to wmc.org to watch the video, which premiered at last December’s Future Wisconsin Summit to rave reviews). But state funding for a wider campaign is needed to get the job done.

Wisconsin already does an amazing job of selling our state as a great place for a family vacation. But now we need to send the message that if you like visiting Wisconsin, you will love pursing the American Dream here. n Follow Kurt on Twitter @Kurt_R_Bauer

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April 2017

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L EG I S L AT I V E AG E N DA

Middle Class Tax Hikes Hurt Middle Class

By Scott Manley WMC Senior Vice President of Government Relations

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egislative Democrats wasted little time in firing the first shot of what figures to be a protracted campaign of class warfare from their side of the aisle this session.

Just two months after swearing in the new legislature, Democrats unveiled a huge income tax increase that hits middle class jobs, families and businesses alike. Specifically, they propose to increase the top income tax rate to 8.25 percent, leaving only seven states with a higher top rate than Wisconsin.

The Democrat plan would also repeal the Manufacturing & Agriculture Credit (MAC) that rewards employers for making and growing things in our state.

Taken together, the projected impact of the Democrats’ tax hike is at least $400 million per year, and perhaps substantially more.

When rolling out their plan, the authors immediately played the classenvy card, making sure to hit all the liberal buzzwords like “one-percent” and “fair share.”

For example, Rep. Melissa Sargent (D-Madison) said “progressives are working to build an economy that works for all of us, not just the top one-percent.”

She was joined by Rep. Chris Taylor (D-Madison) who accused Republican lawmakers of giving handouts to the “rich and powerful,” and pledged to make “big corporations pay their fair share.”

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The Democrats’ excuse for imposing a massive tax increase is based upon the premise that (1) Wisconsin’s economy is working only for the very richest of the rich; (2) successful wealthy people aren’t paying their “fair share” of taxes; and (3) raising taxes on businesses will make Democrats the champions of the middle class.

They are wrong on all three accounts.

To the first point, Wisconsin’s economy is clearly working for our citizens as a whole, and not just the 30,000 people who comprise the “one-percent” of top earners. Just look at the numbers: Wisconsin has historically low unemployment at 3.7 percent, and more than three million people working – the most people employed in our state’s history.

Our labor force participation rate is 68.3 percent, placing us among the 10-highest in the country. We led the Midwest in manufacturing job growth last year, and workers in Wisconsin saw the 12th-highest wage growth in the country from 2015 to 2016.

So we have record numbers of people working, and their wages are growing faster than the vast majority of workers in other states. Sounds to me like an economy that’s working pretty well for everyone.

These positive economic indicators reflect growth that occurred while Gov. Scott Walker and the Republican legislature enacted more than $5 billion in state and local tax savings. The

recipe to keep this momentum going is continued tax relief, yet the Democrat plan would take us in the opposite direction with higher taxes.

As to the Democrats’ second point, that the rich aren’t paying their “fair share” of taxes, the data tells a very different story. In 2015, the most recent year of complete data, the top five percent of income earners in Wisconsin paid about 41 percent of all personal income taxes collected.

By contrast, the bottom 48.5 percent of earners in our state paid only three percent of income taxes collected. Regardless of your political views on taxation, anyone who understands simple mathematics can see that the so-called “rich” are paying much more than their fair share of our income tax burden.

Finally, the Democrats are attempting to position themselves as the champions of the middle class by hitting employers with higher taxes.

In particular, they are seeking to increase taxes on manufacturers, and the jobs they provide middle class workers, by hundreds of millions of dollars per year.

Manufacturing built the middle class in Wisconsin, and an attack on manufacturing is an attack on the middle class.

Manufacturing jobs compensate workers an average of $68,878 per year, which is 44 percent higher than the state average. These are familysupporting jobs that are available to

L EG I S L AT I V E AG E N DA

“Manufacturing built the middle class in Wisconsin, and an attack on manufacturing is an attack on the middle class.”

anyone who is willing to work hard, regardless of their ethnic, educational or socio-economic background. And the Democrats have proposed taxing them by eliminating the MAC. During the four years before the MAC was enacted, Wisconsin lost 81,000 of these high-paying manufacturing jobs.

After the MAC was enacted in 2011, our state stopped the bleeding, and instead of losing manufacturing jobs, we began gaining them. In fact, since the MAC was signed into law, Wisconsin has grown more than 27,000 middle class manufacturing jobs.

It’s important to understand that the MAC only provides a tax credit for production that occurs within the borders of our state, using Wisconsin

manufacturing workers. Every dollar a Wisconsin manufacturer saves through the MAC is a dollar that employer can use to raise wages, increase benefits, hire more workers, or reinvest in product development or increased production.

The fact that Democrats want to reverse the policy that has so effectively helped to create and sustain middle class jobs, while simultaneously claiming to be the champions of the middle class, is abjectly dishonest. It appears they learned nothing from the election last November, and are doubling down on policies that punish the middle class to curry favor with the left wing extremists in their base.

Calvin Coolidge is one of my favorite

presidents. His words of wisdom from the address he delivered at his inauguration in 1925 are just as relevant today as they were 92 years ago: “The wise and correct course to follow in taxation and all other economic legislation is not to destroy those who have already secured success but to create conditions under which everyone will have a better chance to be successful.”

Democrats in Wisconsin would do well to follow President Coolidge’s words of advice, and come to the realization that you will never lift someone up by tearing someone else down. n

Follow Scott on Twitter @ManleyWMC

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April 2017

9

TA X P O L I CY

Easing Tax Compliance Costs Remains Elusive

By Jason Culotta WMC Director of Tax and Transportation Policy

A

The budget also includes several other areas where DOR sought to extend its power over taxpayers to resolve narrow situations, with the language in the bill having a much broader effect than the Department’s stated intent. WMC is working to curtail those excesses and remove the additional audit positions.

Keeping tax compliance arduous for taxpayers does not improve the state’s business climate. Tax simplification should “The Manufacturing and be among the goals of policymakers.

Agriculture Tax Credit Lawmakers could has been a success in focus on making drawing investment and compliance easier for all taxpayers by jobs into the state.” reducing the interest rate for non-delinin drawing investment and jobs into quent amounts owed to the state. Curthe state for its namesake industries. rently the largest spread in the nation, Property taxes have been reduced. The Wisconsin should eliminate the inequity legislature strongly curtailed the state’s of charging 12 percent on amounts alternative minimum tax in the 2015 bud- owed by taxpayers compared to three get, and the state and local tax burden percent paid out by DOR for refunds. now stands at 16th in the nation, the lowThe legislature should also provide est since 1962. But, state tax compliance taxpayers clear protections on records remains too complicated and costly. already subject to an audit from subseUnfortunately, the recently introduced quent audits by improving the statute budget includes 38 new auditor posigoverning reliance on past audits. tions at the Department of Revenue Other compliance issues in need of (DOR), beyond the 102 such positions resolution and for which WMC is advoadded in the previous budget. Adding cating include: auditors hurts the state’s reputation, • Giving businesses a fair chance to as a growing number of businesses legally contest economic substance express their frustration with long audits disputes by setting the evidentiary standard at a “preponderance of the that sometimes, after great effort and evidence” like other civil procedures stress, end up in refunds being paid. fter six years of Republican dominance in both houses of the legislature and Gov. Scott Walker now unveiling his fourth state budget, strong progress has been made in lowering the state’s tax burden. Yet, more is still needed to ease the burden of tax compliance for Wisconsinites.

The Manufacturing and Agriculture Tax Credit (MAC) has been a success

rather than the unreasonably high “clear and convincing” standard enacted by Gov. Jim Doyle in 2009.

• Withdrawing Wisconsin from the Multi-State Tax Commission, whose auditors do not learn individual states’ tax laws, are not subject to the strong confidentiality protections for taxpayer information that exist for DOR staff and operate on a contingent fee basis.

• Updating the state’s unclaimed property statute and banning the use of third party contingent fee auditors for unclaimed property, who have caused great consternation in other states.

• Federalizing the “built in gains” tax recognition period for C corporations that have converted to S corporations, changing the period from 10 years to five.

• Assessing manufacturing property using the contemporary NAICS standard instead of the outdated SIC currently used.

DOR has expanded the number of audits using statistical sampling and is reducing the size of record requests for these audits. Those are positive steps but more remains to be done to make compliance easier for taxpayers.

Given the current makeup of state government, there is no reason a substantial portion of the items identified above cannot be checked off the business community’s tax reform “to-do” list. Instead of adding more auditors and headache, legislators should opt for lower compliance costs and making Wisconsin an easier place in which to do business. n Follow Jason on Twitter @JGCulotta

10 April 2017

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BUSINESS

12 April 2017

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WORLD

Presented by the WMC Foundation

BU S I N E S S WO R L D

Commies, Capitalists and the Teenage American Mind

By Jack Orton WMC Director of Business World and the Future Wisconsin Project

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here’s a great story about an eager young philosophy student from the turn of the century. Putting his Hegel to the side of his desk, he took a long drag from his pen, looked up at the ceiling and exhaled in an exasperated voice, “Why must we study history?”

Without missing a beat, the professor replied, “Those who do not study history are no doubt doomed to repeat it.”

This imperishable answer could not be more relevant. The Wisconsin Business World program seeks to teach students about the big, beautiful world of business and their place in it. Our curriculum teaches the values of entrepreneurship, financial literacy, career planning and, of course, an understanding of the capitalist economic model. Unfortunately, in Wisconsin, the juniors and seniors who participate in the Business World program have had great difficulty defining terms like “communism,” “socialism” or “capitalism.”

They fail to recognize not only the vast distinctions between the three, but the historical significance of each ideology.

It is the same across the country.

A recent poll conducted by the Victims of Communism Memorial Foundation discovered that only 37 percent of students had “unfavorable” views of communism, compared to nearly 60 percent of Americans overall.

Forty-five percent of students aged 16 to 20 said they would vote for a socialist, and 21 percent said they would vote for a communist. This is quite a stark contrast from 80 percent of “Ba-

by-Boomers” and 91 percent of the “Greatest Generation” who “Forty-five percent of still see communism as a “Big students aged 16 to Red Menace.”

20 said they would And, shockingly, according to the same report, more than vote for a socialist.” one-third of teenagers in the U.S. believe more people were killed under George W. Bush’s Now, it is wrong to assume that stupresidency than under the entire Soviet dents are up-to-date on the latest casuregime of Joseph Stalin. The study was alty lists from Iraq or how many people part of the Foundation’s first “Annual Re- died under Stalin’s rule. But, for such port on U.S. Attitudes Towards Sociala large population of students to think ism” and was carried out among 2,300 that the two leaders are comparable in Americans of different age groups. any way is a scandal.

There you have it. More students in The Wisconsin Business World America look favorably on communist program has added new material for principles than capitalist ones. And, more its 2017 curriculum that addresses this than one-third of students believe that a epidemic head-on. During our day-long U.S. president killed more people than “Mini” Business World events and our one of the most notorious dictators in summer camp flagship program, we human history. Now you see there is a have included discussions that explain disturbing lack of history education in the differences between these political this country. and economic ideologies and address Stalin’s 30-year reign of terror destroyed the report’s findings. so many lives that historians cannot We hope, in addition to our past sucagree on a number between three and cessful business education exercises, 60 million. That is to say nothing of the that our students grow to understand millions of lives destroyed by communist these ideologies. We hope our students pogroms, persecutions, famines or the understand that it is capitalism that has people who just died of neglect under created the largest amount of wealth in communist rule in North Korea, Vietnam, human history, and it is capitalism that Cuba, China, Cambodia and others. makes America great. Furthermore, we By contrast, the United States’ interhope our students will gain a greater vention in Iraq since 2003 has claimed appreciation for history, and its help in the lives of 268,000 including civilunderstanding the future. n ians and combatants, less than half of Are you interested in supporting the which occurred under President Bush’s Business World Program? Please conadministration. tact Jack Orton at jorton@wmc.org.

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April 2017 13

R EG U L ATO RY R E F O R M

Metallic Mining Jobs Dead on Arrival

By Lucas Vebber WMC Director of Environmental & Energy Policy and General Counsel

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or the past six years, Wisconsin has done a great job of letting the world know we are “open for business.” Despite the progress we have made, Wisconsin still maintains a moratorium on any new metallic mines in our state. While our neighbors continue to gain from the economic benefits this industry offers, Wisconsin law says “no” before a permit is even submitted.

Mining and Wisconsin go together like the Green Bay Packers and Championships. Mining has been occurring here going back thousands of years.

In a nod to our state’s mining heritage, our state seal contains a miner and several mining symbols. Unfortunately, no metallic mining operation has been permitted in Wisconsin in decades.

Although the resources are there, and Wisconsin companies are ready and willing to provide equipment, supplies and services, a nearly two-decade old state law prohibits the opening of any new metallic mine in the state.

Wisconsin’s mining moratorium took effect on May 7, 1998. The anti-business law added two additional requirements before DNR could permit a new metallic mine. The moratorium provision required an applicant to show and DNR to confirm that: 1) A mining operation in the U.S. or Canada has operated for at least 10 years without a formal determination that it has polluted ground or surface water from the release of heavy

heavy equipment manufacturers who would be able to market their products, as well as countless suppliers that would be needed by a new operation.

The economic impact would be felt throughout the supply chain and would impact communities throughout Wisconsin.

It is worth not“Mining and Wisconsin go ing that the last metallic mine in together like the Green Bay Wisconsin, the Packers and Championships.”

Flambeau mine near Ladysmith, has been held up as a model of environmental stewardship. Looking forward, a new No metallic mine in Wisconsin has metallic mine in our state can repeat been permitted since the moratorium both the economic and environmental law passed – and no mining company success of the Flambeau mine, helping will seriously look at attempting to grow our economy while ensuring our permit a metallic mine in Wisconsin environment remains sustainable for again until the moratorium is lifted. The future generations. permitting process requires a signifiIn the Legislature, Sen. Tom Tiffany cant investment of resources and the (R-Hazelhurst) has taken up this issue uncertainty that the moratorium lanand begun the conversation about the guage creates has proven to be too need to repeal this unnecessary law. As great to justify that investment. this issue moves forward, Modern mining operations, using WMC will be working to educate advanced equipment and techniques, the public and lawmakers on the are both good for the economy and many benefits that modern, environenvironmentally sustainable. The mentally sustainable metallic mining economic benefits of a new metallic operations could bring to Wisconsin. mining operation would not be felt in The time has come to repeal Wisconjust that part of the state that the mine sin’s mining moratorium. n opens. Wisconsin has a number of metals or drainage at the mine site or tailings site; and 2) That a similar mining operation has been closed for 10 years without the same type of formal determination regarding ground or surface water pollution.

Follow Lucas on Twitter @VebberWMC 14 April 2017

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I N N OVAT I O N I N E D U CAT I O N

Fab Labs are Changing the Face of Education

By Ben Niehaus, School District of Florence County District Administrator & Don Sidlowski, Founder of the Northwoods Economic Development Coalition

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isconsin manufacturers have thousands of good-paying jobs that require middle skills – more than a high school diploma but less than a four year degree – that are going unfilled for lack of qualified or interested workers. A program called Fab Lab is revolutionizing our educational model in the K-12 system and providing student graduates with exactly the kind of hard and soft Ben Niehaus skills employers are so keenly seeking.

Fab Lab is an initiative started by MIT’s Center for Bits and Atoms in 2001.

Its original mission was to provide widespread access Don Sidlowski to modern means for invention. This was accomplished by deploying maker spaces including 3D printers, laser engravers and other computer-controlled technology in a setting where users learned “How to Make (Almost) Anything” and connecting them worldwide via sophisticated teleconferencing.

MIT’s focus is global, with the United States on equal footing with other member nations. They never envisioned the power of rolling the model out in the K-12 environment in this country as a launching pad for middle skills. Based

“Wisconsin now has more Fab Labs – already open or committed – than the other 49 states combined.” on what students learn with a STEAM (Science, Technology, Engineering, Art and Math) curriculum in the classroom, beginning in 4-K, they carry that knowledge into the Lab. Rather than telling students what to think, they are instead taught to think critically, including that failure is a part of the learning process that ultimately leads to success.

Just four years ago, practically no one in Wisconsin had even heard of a Fab Lab. It was a given that few people had ever been inside one. There were only five Labs total in the state, not a single one was in a K-12 school district, and there were fewer than 100 Labs in the country. The Northwoods Economic Development Coalition (NWEDC) saw a clear first mover advantage for any state with the vision to move forward quickly. Doing so would provide strategic and tactical advantages over other states, which would find themselves hard pressed to catch up. A pilot program started by NWEDC in early 2014 to install just one Lab in a K-12 district in each of the eight Grow North REDC counties gained such rapid acceptance that the program was taken statewide.

Three Lakes School District was the first K-12 to implement a Fab Lab program in 2014, followed by the School District of Florence County in 2015.

Fast forward to today and well over 150 K-12 school boards have adopted

formal resolutions to implement a Fab Lab program driven by STEAM curriculum. Wisconsin now has more Fab Labs – already open or committed – than the other 49 states combined. Wisconsin is the de facto leader nationwide.

In the past 16 months, 50 of those school districts have been awarded a $25,000 match grant to purchase capital equipment for the maker space inside their Labs. This was made possible by legislation drafted by NWEDC and sponsored by Rep. Mary (Czaja) Felzkowski (R-Irma) which was approved in the last biennial budget. The program is administered by the Wisconsin Economic Development Corporation, which contributed substantial funding to both grant cycles.

Goals for the initiative in 2017 include ongoing match grant funding, a DWD Fast Forward grant specifically for Fab Lab, federal funding through DOA by means of the Rural Economic Area Development Initiative (READI) and creation of a statewide Fab Lab Coalition funded through a public-private partnership with the manufacturing community.

Wisconsin industry has a vested interest in helping produce graduates with the right skills for the jobs of the decade to come. Their support of Fab Lab and the Coalition will be critical to the program’s success. n

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April 2017 15

S M A L L BU S I N E S S

WMC Represents SmALL Businesses in Wisconsin

By Brittany Rockwell WMC Director of Small Business Advocacy

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MC is home to enterprise of all shapes and sizes. Many of our members are companies that employ less than 100 people.

WMC is giving a voice to these companies through the work of the WMC Small Business Committee.

The Small Business Committee (SBC) is comprised of individuals from small businesses representing every sector of Wisconsin’s economy. The committee creates and champions public policy that complement the larger vision and legislative agenda of WMC, giving small business representation on issues like regulatory and tax reform. Last session, the SBC unanimously voted to back legislation authored by Rep. Adam Neylon (R- Pewaukee) and Sen. Devin LeMahieu (R- Oostburg) known as the REINS act.

The bill was passed by the Assembly but failed to get the votes needed in the Senate. The REINS act, had it become law last session, would have ensured that any rule (originating from a government agency) that costs the regulated community more than $10 million over a two-year period, would first require an economic impact analysis and legislative approval before being passed.

SBC members united around this issue because they have an intimate understanding of the consequences that are a bi-product of unelected bureaucrats setting the rules. Furthermore, they have experienced first-hand the oppression of over-regulation and the

long term, harmful effects it can have on the climate in which they do business.

This is just one of the many policies that directly impacts WMC’s members and the SBC was actively involved by testifying in favor or the bill at multiple public hearings.

Even though the REINS act did not pass in the 2015-16 legislative session, the SBC looks optimistically to the new legislature.

The committee is focused on backing this and many other bold policies in the 2017-18 legislative session.

A national study released in August 2016 by the Kauffman Foundation ranked Wisconsin last for startup business activity among the 25 largest states. The results of this report are disheartening and indicate the challenges of our regulatory climate for start-ups, but there is a silver lining.

A separate study at the end of 2016 by the same Foundation ranked Wisconsin second among the 25 largest states for the highest rate of Main Street entrepreneurship or “small business activity.” The survival rate of new small businesses in the Badger State is 50.76 percent and was topped only by Minnesota at 50.77 percent.

Additionally, the report touted Wisconsin as having high density levels for es-

tablished small companies. Established Small Business was defined as “those that employed 50 people or less and were at least five years old.” The report identified that out of 1,000 Wisconsin firms, 704 matched this description. It is safe to conclude that if an entrepreneur

“In an effort to make Wisconsin the best place to start a business, the committee adopted a full 2017-18 Small Business Legislative Agenda.” is willing to place a bet on their young company in Wisconsin, the odds are in their favor to succeed.

The WMC Small Business Committee has identified many of the challenges facing new startups. In an effort to make Wisconsin the best place to start a business, the committee adopted a full 2017-18 Small Business Legislative Agenda.

The agenda will be a roadmap to new legislation and reform that tackles issues surrounding taxes, government spending, education, workforce development, civil justice, legal reform, the environment, energy, human resource and employment law, affordable health care, economic development, transportation, infrastructure and, of course, regulatory reform. n

Follow Birttany on Twitter @RockwellWMC 16 April 2017

wisconsinbusinessvoice.org

HUMAN RESOURCES

Businesses Need HR Consistency

By Chris Reader WMC Director of Health and Human Resources Policy

E

mployers throughout the country increasingly find themselves under attack by local governments bent on micromanaging private employee-employer relationships. Often spearheaded by labor unions, local officials are passing costly employer mandates such as employee schedule restrictions, employment benefit mandates, private wage mandates, creating protected classes above and beyond federal and state law, labor peace agreement mandates, occupational license requirements and mandates in many other areas of employment law.

The ordinances are passed with the claim of helping workers, when in reality they end up hurting the very workers they claim to help by stifling job growth.

From minimum wage increases, like the $15 minimum wage requirement in Seattle and elsewhere, to ridiculous items like the recently enacted prohibition in the city of Philadelphia that stops employers from asking an applicant’s salary history, these interferences into private employer HR offices increase the cost of doing business, increase the likelihood of frivolous lawsuits and create a competitive disadvantage for impacted employers.

We see similar tactics pushed in Madison and Milwaukee, but in other communities, as well. Madison has enacted its own bureaucracy for supposed employment discrimination claims and has established at least 14 protected classes above and beyond state and federal law.

Everyone agrees that discrimination based on sex, race, religion, etc. should not be tolerated. In Madison, however, local ordinances also create protections on unique grounds like being unemployed, student status and homelessness, opening the door for frivolous lawsuits against employers operating within city limits.

With a growing effort nationally by labor unions to use local ordinances to strong-arm employers into complying with union demands, now is the time for Wisconsin to enact statewide HR standards so that employers and workers have consistent employment standards throughout the state.

In doing so, lawmakers would surprisingly be following the lead of former Democrat Gov. Jim Doyle, who signed a statewide minimum wage pre-emption in 2005. That law has effectively stopped local officials from artificially inflating private sector wages above market value within their municipal boundaries.

The law declares “the provision of a minimum wage that is uniform throughout the state is a matter of statewide concern and that the enactment of a minimum wage ordinance by a city, village, town or county would be logically inconsistent with, would defeat the purpose of, and would go against the spirit

of this chapter. Therefore, this chapter shall be construed as an enactment of statewide concern for the purpose of providing a minimum wage that is uniform throughout the state.”

Just like the minimum wage, having

“Having uniform HR regulations throughout the state is important for employers and workers alike.”

uniform HR regulations throughout the state is important for employers and workers alike.

There’s no reason why a gas station on one side of a street should have a different set of rules to follow compared to a competitor on the other side of the street.

As lawmakers debate how to continue moving Wisconsin forward as a great place to do business, strong consideration should be given to enacting statewide HR standards. Doing so will give employers and potential employers confidence that the rules they need to follow when hiring and managing their workforce won’t be changed under their feet locally.

Employment laws should apply equally to all employers, regardless of zip code and regardless of a city or county’s pro-union leanings at any one point in time. n

Follow Chris on Twitter @ReaderWMC wisconsinbusinessvoice.org

April 2017 17

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wisconsinbusinessvoice.org

M A N U FAC T U R I N G A N D AG R I C U LT U R E TA X C R E D I T

Rendering of Belmark's new Shawano facility.

Manufacturing Jobs at Risk K arl Schmidt is a big fan of Wisconsin. However, a turbulent business climate in the state almost made him expand his company to other parts of the country. All that changed in 2011 when Gov. Scott Walker signed into law the Manufacturing and Agriculture Tax Credit – the MAC. Under the previous administration, the cost of doing business in Wisconsin continued to increase. This led De Pere-based Belmark, Inc. to look at other options for growth. The company was going to expand, but the question was where.

“First of all, we wouldn’t have expanded here,” Schmidt told WMC in a recent Two-Minute Drill. “Our strategy would have taken place, and we would have had about three additional operations throughout the United States – but they would not have been here.”

With the implementation of the MAC, Schmidt found a budgetary advantage to expanding in the company’s home state.

“Really, the deciding factor was the manufacturing tax credit,” Schmidt said. “We can be competitive, and

it can really help us to reinvest in our business.”

Belmark, Inc. – located just outside of Green Bay – is a label, carton and flexible packaging manufacturer. Many of the well-known products Wisconsin residents use every day come packaged in the products this local company makes.

Unfortunately, some policymakers in the state’s capital are trying to increase taxes on manufacturers like Belmark by repealing the MAC. They claim that the credit has no influence on job creation in Wisconsin.

“The reality is that this has got to be one of the most inefficient ways to incentivize economic development, given the meager growth that we have and the cost,” said Rep. Gordon Hintz (D-Oshkosh) on a January episode of Capital City Sunday. “You can’t show me a single job that this credit has produced because there is no accountability – there is no requirement.”

Schmidt would beg to differ.

“Just to name some facts, we have spent in capital since 2011 $117 million on both buildings and equipment,”

he added. “Employment in Wisconsin has gone from 495 employees to 736 employees. And that would not have happened without the tax credit.”

In fact, Belmark has been quickly expanding the last five years since the credit has been enacted. The company just completed a 30,000 square foot addition to their offices in De Pere. And most recently, they broke ground on a brand new facility in Shawano.

The company plans to invest about $25 million in Shawano at the start, with another $25 to $30 million in the near future. Once the project is completed, Belmark plans to add just under 30 employees, which Schmidt said will grow to as many as 130 in the next five to six years.

While some are attacking the MAC as a poor policy decision, Belmark and other companies all around Wisconsin show that it is leading to increased investment in the state – which leads to more family-supporting jobs. n

For more information about WMC’s Two-Minute Drill video series, please visit wmc.org/2min.

wisconsinbusinessvoice.org

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C OV E R STO RY

Main  Street, From Shrinking Populations to Internet Dead-Zones, What’s Next for Rural Wisconsin?

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wisconsinbusinessvoice.org

By Nick Novak WMC Director of Communications and Marketing

A

nyone who is not from rural Wisconsin would likely describe Chris Pollack if they were asked to create a mold for what they think a typical Wisconsinite is like. Pollack started working for the family farm at 12 years old. His first job was mowing grass, but a lot has changed since then.

Upon graduating from high school, Pollack went to the University of Wisconsin-Madison to complete the Farm and Industry Short Course.

Today, he is the co-owner of PollackVu Dairy in Ripon. The family milks 140

Holstein cows and farms 640 acres with crops that include corn, soybeans and alfalfa.

While Pollack may represent the current image of rural Wisconsin, he plays just one role in the diverse landscape outside of Milwaukee and Madison.

From farmers and bankers to grocers and manufacturers, nearly all industries are represented throughout these parts of the state. And rural Wisconsin truly is a great place to live, work and raise a family.

However, rural Wisconsinites are facing numerous challenges. Some

Photography by Karen Heram

are the same seen by businesses in downtown Milwaukee, while others may not even be a second thought to people in more urban communities.

The Data

It is no secret that millennials have been flocking to cities for the last ten years. Young people crave immediate gratification. Want to watch a movie?

It can be instantly streamed on Netflix.

Need to buy shampoo? Two-clicks on Amazon and it will be at your door within a day or two. Don’t know the answer to a question? Simply ask Google.

This instant-gratification mentality means people in their twenties do not want to drive 30 minutes to grocery shop or eat at a restaurant. They want to walk just outside their high-rise apartment and have whatever they want right in front of them.

These and many other reasons are why urban areas in Wisconsin have seen an increase in population, while places like Rusk County have declined. From 2010 to 2015, the population in Dane County – home to the

state’s capital – grew its population by 7.29 percent. Green Bay’s Brown County grew 4.32 percent and Milwaukee County grew just over one percent during the same period.

Unfortunately for rural Wisconsin, Rusk County lost over four percent of its population from 2010 to 2015. And it was a very similar story for most rural counties in the state.

Wisconsin Needs Workers

The lack of available workers is not something that is specific to rural Wisconsin, but it is being especially felt by smaller communities. The state’s unemployment rate currently sits at 3.7 percent – essentially full employment.

“The biggest challenge is our workforce. There are jobs available. These are decent jobs. They are not all starter jobs. And there is nobody to fill them,”

Karen Heram, Rice Lake Chamber of Commerce Executive Director, told Wisconsin Business Voice. “So, we are struggling.”

About one-quarter of the Rice Lake Chamber’s membership is in the manufacturing field, which is being hit especially hard by the skilled worker shortage. That is why Heram says the Department of Workforce Development and Wisconsin Indianhead Technical College are working with local businesses to hold training academies.

“That has been working,” Heram said. “It is slow because it is only 10 to 12 people at a time, but if we can get those people out working, that is fantastic.”

Pollack is facing the same issues in the dairy industry. But it is not just local family farms that are struggling to hire. Milk Source, headquartered in

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April 2017 21

C OV E R STO RY Kaukauna, is in the same boat. Started as a 160-cow farm in the late nineties, Milk Source now runs eight large dairy farms in three different states.

“There is a systemic shortage of agricultural workers,” said Jim Ostrom, Milk Source President and CEO. “Twentyfive years ago there was a pipeline of workers who were very enthused

Rinehart says that he has put a special focus on serving the wants and needs of his customers because he needs them to keep coming back for his business to be successful.

That is why he recently stopped just short of purchasing four self-checkout lanes, even though that is the direction many other stores are going. “How can

speed” are simply hyperbole. The lack of broadband availability can be detrimental to millennials staying in rural Wisconsin.

“I talked to a young couple who had been looking for a home, and someone else knew of this beautiful home, but it didn’t have internet,” Heram remembered. “They didn’t buy the home, they

about being in agriculture, but the flow of young, agriculturally trained people from growing up in it are almost non-existent.”

Ostrom made it clear that Wisconsin does not have enough people in the state to fill all the jobs available, and he said many of the people he tries to hire do not want unskilled positions.

“We need immigration reform. Folks out of the tech schools do not want to milk cows for a living,” Ostrom added.

“Just like hotels need people to clean hotel rooms, we need people to milk cows. The U.S. food system is dependent on meaningful immigration reform.”

The U.S. food system is also dependent on that food being readily available to every part of the state. That is why Doug Rinehart is committed to running his family’s chain of independent grocery stores in northwestern Wisconsin.

Dick’s Fresh Market has locations in Amery, Menomonie, Osceola and River Falls, employing about 450 people.

a self-checkout say ‘thank you’ to a customer?” he asked.

But, Rinehart also says that he struggles to find workers who want to go into retail.

“Our biggest struggle right now is just the pure population that we have to draw on when it comes to finding associates” Rinehart explained. “It is very difficult today to find young people who want to work in the grocery business and make it a career.”

were not even interested because it didn’t have internet.”

Businesses in the Rice Lake area sometimes end up in the same situation. Heram explained that one of her members is just 12 miles outside of town, and they have tried every possible solution to get high-speed broadband with no success.

Over in Ripon, Pollack told Wisconsin Business Voice that the lack of highspeed internet can be a detriment to his business.

“We have a program that we use to monitor our cows’ health. That is set up on our farm,” Pollack said. “To get someone to service it, that is usually over the internet. Second, we also back up the information from that program through the internet. So, having limited internet speed is a challenge there.”

In addition to problems it causes running the business, he highlighted the fact that it is hard to promote the business or industry. Simply uploading a video to Facebook or Twitter can be

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Internet: No Connection Available

One major issue that is driving people away from rural Wisconsin is that the access to broadband internet is limited. In some cases, it does not even exist.

“The house that I live in, we cannot get broadband,” Pollack said. “We struggle to even get satellite internet.

We are basically stuck with high-speed dial up.”

For anyone who has not used dial-up internet recently, the words “high-

a non-starter because the internet is not fast enough – or non-existent – to complete the process.

What’s Next for Rural Wisconsin

None of the challenges faced by small communities around the state will be solved overnight, but each person is trying to solve their small aspect of the problem. Pollack is working with the UW-Madison Dean of Short Course to get students more interested in agriculture, while Rinehart continues to innovate at his grocery stores to make sure he is staying competitive for both customers and new workers.

Dick’s Fresh Market will be going all-in with e-commerce by the end of 2017, offering online ordering and delivery. Rinehart said businesses in rural communities have to be doing the same things that are being done in more populated areas because otherwise they will fall behind and possibly go out of business.

On a grander scale, policymakers in Madison are listening to the needs of rural Wisconsin. Gov. Scott Walker has proposed multiple investments in education, broadband and transportation.

Over his two-year budget, the governor proposed an additional $20 million for sparsity aid to rural school districts, $25.4 million for high-cost transporta-

tion projects that are mostly in rural areas and $40.5 million for broadband expansion for schools and residents.

At least one rural legislator is excited about the governor’s proposal to expand broadband. Rep. Treig Pronschinske (R-Mondovi) said it is a step in the right direction to help support local businesses.

“The most important policy issue is broadband and cell service when you are running businesses,” he said.

“They do not have the opportunities like businesses that have those services to be efficient and effective.”

In addition to investments in broadband and K-12 education, Gov. Walker’s budget proposal also invests $10 million more in the Wisconsin

Technical College System to increase workforce training. Walker has traveled the state recently to discuss how his administration is putting a focus on getting people trained for the jobs currently available.

As rural Wisconsin communities continue to tackle these challenges each day, there is good news on the horizon.

Millennials may be at the end of their “city living.” In their early 20’s, many millennials were looking for the exciting aspects of living in cities. However, the flow of young professionals from rural and suburban areas to cities has slowed.

In fact, one report shows that urban areas hit “peak millennial” in 2015. That means the interest in big cities may start to decline in the coming years as millennials get married and have children, likely increasing populations in counties that have seen decreases more recently. This is good news for small communities.

On a related note, younger individuals who thirsted for urban living years ago may be changing their tune because of high costs of living, according to a recent Wall Street Journal article.

This is another positive sign for rural areas that have much lower housing costs.

One thing is for sure: every corner of Wisconsin has something great to offer, and it is a great state to live, work and raise a family. n

wisconsinbusinessvoice.org

April 2017 23

WISCONSIN POLITICS

U.S. Political Revolution Started In Wisconsin

By John Fund National Affairs Columnist for National Review magazine and a Fox News contributor

T

oday, it’s hard to describe just how different a state Wisconsin is politically compared to just ten years ago.

Democrat Jim Doyle was governor.

Liberals controlled the State Senate, a majority of the state’s U.S. House members and both U.S. Senate seats.

Activist judges formed a 4 to 3 majority on the state’s Supreme Court, and issued a breathtaking series of rulings reinterpreting laws in favor of trial lawyers.

When Britain’s General Cornwallis surrendered at Yorktown, giving Americans their freedom, his stunned troops played the song “The World Turned Upside Down” as they marched out to surrender. Liberals must feel much the same in Wisconsin. Gov. Scott Walker has won election three times, ratifying voter support for his pro-jobs and deregulatory agenda. His allies have large majorities in both houses of the legislature and Republicans represent a majority of the state’s representatives in Congress. Judges who support the Rule of Law rather than judicial activism form a 5 - 2 majority on the state’s Supreme Court. Wisconsin stunned the nation in 2016 by voting for Donald Trump - the first time a GOP presidential nominee has carried the state since 1984.

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The political success of pro-free market and conservative candidates came about because of the failure of liberals to improve the state’s economic climate and the success conservatives have had in turning the state around.

In 2011, Walker and the legislature made the state more competitive by passing Act 10, which removed the ability of public unions to collectively bargain and required that unions be recertified every year by a majority of all members. The law ended the government’s role as the union’s automatic dues collector, and in 2015 Wisconsin also became a right-to-work state. Given a choice for the first time, less than eight percent of workers in Wisconsin now belong to unions, down from 14.2 percent before Act 10.

The Wall Street Journal noted the change in climate that’s been created.

“Union reforms and right-to-work laws aren’t the only drivers of economic growth, but they do attract many businesses that won’t consider operating in states without them. The reduction in union power has stabilized public finances that were spiraling upward. This in turn gives businesses confidence that they won’t be hit with tax increases year after year, a la Illinois.” In 2016, Forbes magazine ranked Wisconsin the 27th state in the country for business, up from 40th in 2011. A survey of CEOs

by WMC found that 90 percent say the state is heading in the right direction.

The MacIver Institute, a think tank

in Madison, estimated last year that Act 10 had saved state taxpayers over $5.2 billion since it was implemented, allowing for tax cuts for both individuals and businesses, as well as a freeze in property taxes. The state saved $3.36 billion by making government employees pitch in for their pension and health benefits and another $404.8 million by opening up employees’ health insurance to competitive bidding. The overall savings are the equivalent of an extra $2,291 in the pockets of every household in Wisconsin.

Results like that explain why politically the state, once a bastion of progressive thought, has been transformed.

The Wisconsin Education Association Council, the state’s dominant teachers’ union, has seen membership decline by almost 60 percent since Act 10 passed in 2011, down to around 40,000. The union representing state public employees saw two-thirds of its members drop out, many because they didn’t believe the union was providing value for the up to $1,000 in annual dues it extracted.

Another factor fueling the decline was that a majority of the dues money that unions had collected had been plowed into political campaigns that many members didn’t support (Walker won almost 40 percent of the votes of union members in his 2012 recall).

Unions that had once been flush with cash to fight conservatives now found themselves with depleted coffers. In the

WISCONSIN POLITICS

WMC’s issue advocacy program has spent $43 million since 2005 educating the public on important policy issues.

2016 race for a seat on the Wisconsin Supreme Court, unions were unable to fully fund the independent expenditures backing liberal judge Joanne Kloppenberg in her bid to unseat conservative supreme-court justice Rebecca Bradley. Commercials touting Kloppenberg or bashing Bradley were completely absent from the Wausau and Green Bay media markets in the home stretch of the campaign. With the help of WMC, Bradley wound up sweeping those markets and winning statewide with 52 percent of the vote. In 2017, dispirited liberals failed to even come up with a challenger to conservative Supreme Court Justice Annette Zeigler.

Liberals acknowledge that efforts by groups like WMC played a major role in curbing their influence. Democratic consultant Sachin Chheda admits that “Labor is still core to the Democratic Party, but they have many fewer members and a lot fewer resources than they did five years ago.”

Today’s political environment has vindicated the decision of groups such as WMC to become more assertive on the part of its 4,000 members. As the liberal Isthmus newspaper reported, WMC was seen for decades “as a quiet, pro-business group. It advocated lower taxes and less regulation, but largely steered clear of the political

fray. It had cordial relations with labor leaders.” That approach may have made for a quiet life, but it did little to halt the state’s slow decline.

Today, Wisconsin is seen across the country as showing the way in how to turn a state’s politics around. Grover Norquist, the head of Americans for Tax Reform, hails the Wisconsin record as a model for how to turn a liberal state back to fiscal sanity and businessfriendly policies. “What Walker and his allies have done is a homerun for taxpayers,” Norquist said. “People all over the country should be studying it because it proves that smart policies also make for smart politics.” n

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STAT E S U P R E M E C O U RT

Not Even a Race: Ziegler Wins

By Jim Pugh WMC Senior Director of Advocacy and Membership

I

philosophy and the threats posed by Clifford’s philosophy.

In the end, the public chose judicial traditionalism over activism. Since 2005, WMC IMC has spent $43 million on issue advocacy to educate the public about the positions of the governor, attorney general, Supreme Court justices and members of the legislature.

In 2008, voters ousted “Gone are the days when liberal Justice those who cannot pass their Louis Butler agenda through the legislature to establish a conservative can force their unpopular Supreme Court ideas on the rest of us through majority. That conservative judicial fiat.” majority has sustained challenges to tort reform, union reforms, After 10 years of constant high-conflict elections, Wisconsin voters seem to regulation relief and shut down rogue prosecutors who trampled on the First be getting a break. And, it appears that Amendment in the so-called “John the professional left in Wisconsin may Doe” investigation. be out of gas after non-stop recall elecThe lesson learned is that Supreme tions and after government unions were Court races matter, and the high court depleted of political funds as members has an impact on every business, dropped out after the passage of every community and every family Act 10. in Wisconsin.

Ziegler was first elected to the SuZiegler, a former federal prosecutor preme Court in 2007, in a hard-fought campaign against Madison immigration and former Washington County Circuit Court Judge, has gone on to be a attorney Linda Clifford. WMC Issues leader on the Supreme Court. Ziegler Mobilization Council (IMC) spent $2.5 has served as a solid judicial traditionmillion on issue advocacy to educate alist, consistently supporting the rulethe public about Ziegler’s traditionalist n a stunning development, liberal judicial activists failed to challenge Wisconsin Supreme Court Justice Annette Ziegler for a 10-year term.

Ziegler was unopposed on the April ballot. She won. She is a strong member of a 5-2 judicial majority and a young jurist who may serve for decades to come.

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of-law from the bench, according to the Wisconsin Civil Justice Council.

Fortunately, the Wisconsin Supreme Court’s conservative majority was established just as Gov. Scott Walker’s policy reforms were passing in the legislature.

Judicial traditionalists, like Ziegler, defer to the legislature for making laws.

Imagine what our state would be like if a liberal Supreme Court majority led by former Chief Justice Shirley Abrahamson had been in place when the Act 10 litigation was considered, or right-towork, or medical malpractice caps or limits on punitive damages.

The election of Justice Ziegler 10 years ago was the start of a movement to establish the Wisconsin high court as a check on the activist lawyers, judges and others who would use the court to thwart the will of the people. Gone are the days when those who cannot pass their agenda through the legislature can force their unpopular ideas on the rest of us through judicial fiat.

Wisconsin’s business community remains committed to defend our traditionalist viewpoints in the court of public opinion with millions of dollars, if needed, through issue advocacy.

And, the timing was right as government unions have lost half of their members and the formerly forcedsupport for candidates chosen by the union bosses. n

W M C A N A LYS I S

Business Community Must Defend Gableman

O

n the Wisconsin Supreme Court, Justice Michael Gableman has been a solid judicial traditionalist who defers to the legislature. He will enjoy strong support from the business community next year.

However, his steadfast defense of the rule of law causes heartburn for activist elites and union leaders who would ask the high court to create new laws that never passed the legislature.

Gableman wrote the majority opinion when the court upGableman held Act 10, Gov. Scott Walker’s reforms for government worker unions. That single ruling will put Gableman, who faces re-election next spring, at the top of the hit list for unions and others in Wisconsin and nationally.

The campaign against Gableman will be especially fierce because the left could not recruit a candidate to challenge Justice Annette Ziegler this year.

That embarrassment will likely motivate candidate recruitment against Gableman as he seeks his first re-election to a 10-year term.

However, Gableman will have a strong coalition of business leaders, law enforcement, prosecutors and other conservatives. He is a tenacious campaigner. He is the first challenger

to defeat an incumbent justice since the 1960s, and only the fifth to unseat an incumbent since the high court was established in 1852, according to the Milwaukee Journal Sentinel.

WMC and the business community will likely spend millions of dollars to educate the public about Gableman’s traditionalist record. In 2008, WMC’s issue advocacy program spent $2.25 million to educate the public about Gableman and former Justice Louis Butler. Gableman’s victory created a conservative majority on the high court.

Since joining the Supreme Court, Gableman has been a consistent supporter of the rule of law, deferring to the legislature, reports the Wisconsin Civil Justice Council. The conservative majority has consistently rejected efforts to overturn reforms passed by the legislature and signed by Gov. Scott Walker.

In upholding Act 10, the Supreme Court deferred to the legislature to regulate government worker unions in our state. Collective bargaining by government employees is a privilege established by the legislature and not a right.

Additionally, Gableman wrote the ruling in the so-called “John Doe” investigation. The high court stopped the rogue, politically motivated investigation into Gov. Walker and others, including WMC, because the investigation was a violation of the First Amendment.

“In upholding Act 10, the Supreme Court deferred to the legislature to regulate government worker unions in our state.“

The Milwaukee Journal Sentinel reported about Gableman’s ruling in the John Doe: “It is utterly clear that the special prosecutor has employed theories of law that do not exist in order to investigate citizens who were wholly innocent of any wrongdoing,” Gableman wrote.

Calling the challengers brave, Gableman wrote that their litigation gave the court “an opportunity to re-endorse its commitment to upholding the fundamental right of each and every citizen to engage in lawful political activity and to do so free from the fear of the tyrannical retribution of arbitrary or capricious governmental prosecution. Let one point be clear: our conclusion today ends this unconstitutional John Doe investigation.”

Justice Gableman has demonstrated courage on the high court. We should welcome the opportunity to debate his record with the public next year and give him the thanks that he deserves for his courage to stand up for the rule of law. n

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April 2017 27

Business Day in Madison A nnually, business leaders from around Wisconsin converge on the state’s capital for the premiere event of the year: Business Day in Madison. This event gives CEOs and other executives the opportunity to network with colleagues from every part of the state, gain insight from some of the nation’s most influential voices and meet with elected officials to discuss the important issues facing their industries.

The 15th annual Business Day was held on March 1 at Monona Terrace Community and Convention Center, just steps from the State Capitol. Nearly 1,000 attendees heard from top-notch speakers throughout the day, including: Robbie Bach, Former Chief Xbox Officer for Microsoft; Jonah Goldberg, National Review Senior Editor and FOX News Contributor; Hugh Hewitt, nationally syndicated talk show host and commentator; and Kimberley Strassel, columnist and member of the Wall Street Journal editorial board.

In addition, National Association of Manufacturers President/CEO Jay Timmons delivered remarks on the changing landscape of manufacturing. What used to be a job that was done on a dark and dingy shop floor is now a career that uses new technologies like robotics and automation. Timmons spoke of the need for new skilled workers to fill the family-supporting jobs currently available in the state.

“Our leaders in Washington, they want us to succeed.

The country indeed, the country, is rooting for us,” said Timmons. “Manufacturing is diversifying; it’s increasing output and bringing us transformative technologies. We’re charting new frontiers, and we’re supporting new jobs.

This, ladies and gentleman, this is the state of manufacturing in America.”

Business Day in Madison concluded with Gov. Scott Walker detailing his priorities for the state budget and his focus on workforce.

“We are committed to going forward, partnering with our employers, whether you are just a small little startup or whether if your one of the biggest employers in this states’ history,” said Walker. “We are committed to working with every one of you no matter what industry, whether it’s in manufacturing or information technology, whether it’s in healthcare, or anything else out there on the horizon. We are committed, we don’t discriminate upon employers, we want to help everyone grow and prosper in this state.”

This can’t miss event once again showed the importance of Wisconsin’s business community, which is why plans are already starting for next year’s program. WMC looks forward to seeing you at Business Day in Madison 2018.

LIVE from Business Day in Madison, CNBC Highlights Importance of Manufacturing NAM President/CEO Jay Timmons interviewing live on CNBC from the floor of Business Day.

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Business Day in Madison turned 15 years old in 2017, and for the first time, the event garnered national media attention.

CNBC broadcasted live from the floor of Business Day to talk with attendees about manufactur-

Gov. Scott Walker (right) presents NAM President/CEO Jay Timmons (middle) and WMC President/CEO Kurt Bauer (left) with a proclamation for “Modern Manufacturing Day.”

National Review senior editor and FOX News Contributor Jonah Goldberg discusses the national political landscape during his speech.

Author and political commentator Hugh Hewitt delivers remarks during his keynote speech at Business Day in Madison.

Major General Donald P. Dunbar and WMC Board Chairman Bob Kamphuis with the UW-Madison Naval ROTC before kicking off Business Day with the presentation of the colors.

Wall Street Journal editorial board member Kimberley Strassel highlights the importance of free speech and the First Amendment in her remarks at Business Day in Madison.

ing and its impact on the economy. Guests discussed new and innovative technologies that are changing the landscape of manufacturing, commented on the policies of President Donald Trump’s administration and highlighted Wisconsin’s focus on the growing manufacturing sector. Those interviewed

throughout the day included: Todd Teske, Briggs & Stratton Chairman/President & CEO and Former WMC Board Chairman; Nick Pinchuk, Snap-On Chairman/CEO and WMC Board Member; Jay Timmons, National Association of Manufacturers President/ CEO; and Wisconsin Gov. Scott Walker.

Briggs & Stratton Chairman/President and CEO Todd Teske prepares for his live interview from Business Day on CNBC.

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T H E F U T U R E W I S C O N S I N P RO J E C T

How Wisconsin Measures Up T overall score is compiled with these four factors in mind. Fiscal stability is 50 percent of the ranking, while the other three each carry 17 percent.

The latest edition of the ALEC-Laffer State Economic Competitiveness Index, prefaced by Gov. Scott Walker, reports Wisconsin is ninth in “economic outlook.” The ranking is determined by 15 state policy variables not “Wisconsin’s unemployment rate in January listed. But, the economic outlook dropped to a 17-year low of 3.7 percent, rankings which ranking the state 13th best in the nation.” are compiled with current data and projecting into the future, are quite different from outlook, business climate, unemploythe “economic performance” rankings ment rate, regulatory environment and which are a backward-looking measure education. based on the state’s gross domestic The mission of the Future Wisconsin product, absolute domestic migration Project is to make Wisconsin more and non-farm payroll employment. In competitive, if not the most competitive this ranking, which encompasses the state in the union. That being said, an economic performance of Wisconsin effective state government is essential from 2004-2014, we rank 41st. in laying a framework upon which the The 2016 CEO Magazine ranking the rest of the state can build and succeed.

Best States for Business, placed WisAccording to a recent study done by consin 11th using a formula that takes U.S. News and World Report, Wisconinto account taxation (30th), workforce sin ranks fifth in the category of “Best quality (15th), living environment (19th) State Governments.” Our fiscal stabiland approval of right-to-work legislaity is 15th, our budget transparency tion. is sixth in the nation, our government According to the Bureau of Labor digitalization (the use of digital technolStatistics, Wisconsin’s unemployment ogy in government agencies) is sixth rate in January dropped to a 17-year and our state integrity (anti-corruption low of 3.7 percent, ranking the state measures in political financing and 13th best in the nation. In contrast, electoral oversight) is 23rd. A state’s he conclusion of any presidential campaign resurrects an age-old debate: Which states are doing the best at what matters to most Americans? As the peaceful transfer of power continues in Washington, it is important to understand where Wisconsin stands among the 50 states concerning the topics of state government, economic

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Illinois’ unemployment rate sits at 5.4 percent – 46th out of the 50 states and Washington, D.C. Forbes Magazine reports that, apart from being the nation’s leading producer of cheese, household incomes in Wisconsin are projected to increase at the eighth fastest rate in the U.S. over the next five years. In the same report, Forbes ranks Wisconsin 23rd among regulatory environments.

Understandably, U.S. News and World Report places Massachusetts at the top of its “Best State for Education” list. With some of the best universities in the world residing in the “Birthplace of America,” it is no surprise that they top the list. Wisconsin, on the other hand, ranks 17th when it comes to education.

The states are ranked by their performance in higher education (educational attainment, graduation rates, college debt and tuition costs) and Pre-K-12 education (enrollment in and quality of pre-K, test scores and the graduation rate among public high schools).

There are a few organizations across the state that seek to promote and encourage Wisconsin’s competitiveness in the nation. But, the Future Wisconsin Project was founded by a collection of professionals from all environments and all walks of life ready to not only identify the problems that face our state but eager to solve them. We hope as the Future Wisconsin Project grows, we are able to report Wisconsin’s rise among the rankings listed here, too. n

MEMBER NEWS

Acuity, Baird on Fortune’s “100 Best Companies to Work For” List Two Wisconsin companies made the 20th edition of Fortune’s “100 Best Companies to Work For” list. Baird, an international financial services firm based in Milwaukee, ranked fourth, and Acuity, a property and casualty insurer based in Sheboygan, ranked ninth on the prestigious list.

Each year, Fortune partners with Great Place to Work to conduct the survey, which they say is “the most extensive employee survey in corporate America, with feedback from more than 230,000 people.” Employees anonymously assess their workplace on a variety of factors, from quality of their leaders to support for their personal and professional lives.

According to Fortune, “survey results are compared with peer organizations of like size and complexity and are highly reliable statistically.”

Acuity and Baird proudly boasted about the recognition.

“We are honored to be named among the best employers to work for across all industries, and the credit for this accomplishment goes to everyone at Acuity,” said Ben Salzmann, Acuity President and CEO. “The largest component of our recognition as a great place to work is what coworkers say about each other and the workplace.”

“Being a great place to work is the foundation of who we are at Baird and is fundamental to our privately held, independent business model and brand,” said Steve Booth, Baird President & CEO. “We are committed to providing a great workplace environment because it enables us to attract and retain talented associates who excel in their roles and enhance our clients’ overall experience with Baird.”

For the eighth time in 11 years, Google was named the number one place in the country to work by Fortune.

Passing of Former WMC Chairman Philip Hendrickson We are saddened to learn of the passing of WMC’s Past Chairman, Philip Hendrickson. Phil was elected to the WMC Board of Directors in 1973 and served as the Board’s Chairman from 1976-1978, representing Krueger International, Inc. Phil was an admirable leader who invested in and promoted business within the state and throughout the country. While his legacy will live on through his philanthropic interests and commitments, he will be dearly missed.

Send your company news to nnovak@wmc.org

W M C STA F F N E W S Mallory Wipperman joined WMC in January as member relations coordinator. Prior to being a part of WMC, she worked in Gov. Scott Walker’s office on the advance team for two years, coordinating the governor’s participation in events across the state. Wipperman attended the University of Wisconsin-Whitewater and graduated in 2014 with a bachelor’s degree in Political Science.

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David Bartscher became WMC’s video production manager in January. Previously, he spent two years working as a video editor and photojournalist at WKOW Channel 27, the ABC affiliate in Madison. Bartscher is a 2014 graduate from the University of Wisconsin-Madison with a degree in Life Sciences Communication.

Kyle Pankow joined WMC in March as a graphic designer and will be the lead designer for Wisconsin Business Voice. Before his time with WMC, he spent four years as a marketing assistant at Mead & Hunt – an engineering and architecture firm headquartered in Middleton. Pankow earned a graphic design degree in 2012 from Augustana College in Rock Island, IL.

W M C F O U N DAT I O N

Making Wisconsin Great…

Always

By Kari Hofer WMC Foundation Executive Director

W

(see page 13). Wisconsin Business World® demonstrates the importance of entrepreneurship and the free-market system, as well as touching critical topics such “WMC Foundation’s programs as financial include Wisconsin Business literacy, career planning and World®, Wisconsin Safety business ethics.

Council, State of Wisconsin Today, Wisconsin Business & Industry and the Business World® reaches over Future Wisconsin Project.”

2,000 students community and positive culture in Wisthrough two summer programs and ten consin — that is WMC Foundation. “mini” programs.

WMC Foundation is a 501(c)(3) charitable organization dedicated, in short, Wisconsin Safety Council to providing educational programs and The Wisconsin Safety Council (WSC) information research all toward the mis- is committed to saving lives and presion of improving Wisconsin’s economy venting injuries at work, home and in and quality of life. It is the belief of the community. For over 90 years, they WMC Foundation that a better informed have been the state’s leading provider public fosters one that is healthy of workplace safety training and educaand prosperous. tion. WSC holds over 60 training semiWMC Foundation’s programs include nars each year all across Wisconsin.

Wisconsin Business World®, Wisconsin They also host an annual Safety and Safety Council, State of Wisconsin Busi- Health Conference and Expo, drawing ness & Industry and the Future Wiscon- over 1,500 safety professionals — the sin Project. We serve a wide variety of largest in the Midwest! individuals in all sectors of Wisconsin’s State of Wisconsin Business & Industry economy. Allow me to elaborate: State of Wisconsin Business & IndusWisconsin Business World® try is held each October during manuWMC Foundation was founded in facturing month and features presenta1980 for the purpose of Wisconsin tions addressing the current position of Business World®, a business educaWisconsin’s business environment. Last tion camp for high school students year, this event celebrated the manuhile WMC works to advance pro-business public policy, there is another arm of WMC working to advance a pro-business

facturing industry’s successes and highlighted the “Coolest Thing Made in Wisconsin.” This contest drew hundreds of submissions and thousands of votes from across the state.

Future Wisconsin Project

The Future Wisconsin Project is a uniquely collaborative initiative between three drivers of Wisconsin’s future – education, government and business.

The project began in 2013 to identify and address Wisconsin’s systemic economic challenges. The partners of the Future Wisconsin Project used focus areassuch as talent acquisition, business competitiveness, global engagement, government efficiency, quality of life and entrepreneurism to better understand where we are and where we need to go.

Now that we’ve diagnosed the problem, it’s time to roll up the sleeves and get to work on the solutions.

Through WMC Foundation, Wisconsin’s business community has joined together with a shared dedication to a flourishing economy, and they are making an impact. If you haven’t already, I invite you to join the cause and support WMC Foundation’s programs by attending one of our events or making an investment. If you already have, thank you for your support. As a reminder, sponsorships of the WMC Foundation and its programs are tax-deductible.

To learn more about WMC Foundation and how you can participate, visit wmc.org/foundation.

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M A N U FAC T U R I N G S O L U T I O N S

Unnatural Alliances Push Manufacturing Innovation

By Caralynn Nowinski Collens CEO, UI LABS

T

help make manufacturing more efficient and cost effective, ultimately enabling U.S. companies to remain competitive on the global stage. Introducing these new technologies onto shop floors will help large corporations, along with small and medium-sized manufacturers within the supply chain.

Our projects These cutting-edge solutions focus on topics like end-to-end will help make manufacturing design, product more efficient and cost effeclife cycle mantive, ultimately enabling U.S. agement and cybersecurity that companies to remain competaddress the most itive on the global stage. pressing needs of the industry. For example, a recently At the Chicago-based Digital Manucompleted project developed a techfacturing and Design Innovation Institute nique to improve the manufacturing of (DMDII), we have focused on increasing large-scale castings, reducing time and America’s manufacturing competitiveminimizing scrap to help bring this type ness since our founding in 2014. We beof production back from Asia. lieve that for the U.S. to remain a global leader, two key elements are required: Emerging Jobs collaboration and investment.

Increased productivity and automaA Collaborative Model tion mean that the typical manufacturing job is changing. The complex DMDII, a UI LABS collaboration, machines on manufacturing floors brings together universities and indusrequire people to program them – worktry – along with startups, nonprofits and government stakeholders – to work ers equipped with both operational and computer science expertise. together to address manufacturing DMDII is collaborating with Manpowchallenges. With resources and expererGroup to develop a set of profiles for tise from the Department of Defense jobs related to digital manufacturing. and our more than 300 partners, DMDII These jobs require a different set of is using data collection, cloud computskills than legacy manufacturing jobs ing and other digital technologies to – understanding this new reality will enimprove manufacturing processes. able employers to make investments in These cutting-edge solutions will he U.S. has lost five million manufacturing jobs since 2000, a figure cited frequently during the 2016 presidential campaign. This sparked an important discussion of how to revitalize communities and industries affected by jobs that have disappeared or gone offshore.

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hiring and training that will make them competitive in a global market.

To impart knowledge about digital manufacturing and design to workers and learners of all types, DMDII has also partnered with the University at Buffalo to provide content through a massive open online course (MOOC) on Coursera.

Investing in Our Future

Facilitating the type of collaborative R&D to move manufacturing forward requires investment. The national Manufacturing USA network, of which DMDII is a part, is a powerful example of the impact public funds can have on advancing manufacturing. The institutes leverage commitments from industry against federal dollars. Together, these resources are used to fund late-stage research and move new technologies toward commercialization.

This type of public-private model allows for unnatural alliances. We’ve seen competitors like GE and RollsRoyce collaborate on R&D projects, and startups forge new relationships with large OEMs through connections made at our networking events.

By bringing the best manufacturing minds from universities together with leading corporations and small and medium-sized manufacturers, DMDII is developing solutions that will not only benefit individual firms – they’ll help the U.S. remain at the forefront of manufacturing, yielding well-paying jobs and economic benefits for years to come. n

CY B E R S E C U R I T Y

Ransomware a Major Threat to Businesses

By Lara Hart WMC Director of Technology

I

not guarantee that you – the victim – will get the decryption key or the tool needed to regain access to your data.

According to the FBI, clicking a link in an email is the most common method of infection. Victims of ransomware often click on an unsuspecting link that contains the malicious code that allows their data to be accessed, locked and made unavailable. However, the FBI is also seeing that websites may “Essentially, ransomware contain similar malicious code allows hackers hold to data, or that can allow unentire networks, hostage until patched systems a ransom is paid.” to also be infected without having to click on any links.

Even though there isn’t one particular tool that can extensively about cybersecurity and its protect you from a ransomware attack, impact on Wisconsin businesses. While there are many things that you can do the topic of cybersecurity is broad, one to reduce your risk of becoming a vicarea with significant growth is known tim of ransomware. What can you do to as ransomware. Ransomware has seen help prevent a ransomware attack? an upward trend since 2015. Unfortu• Train employees to be aware of rannately, not only is ransomware on the somware and how they may become rise, but the method of infection contininfected. ues to evolve.

• Be cautious of clicking on any links By definition, “ransomware” is malior attachments you aren’t expecting, cious software that allows unauthorized and avoid websites that are not necesaccess to an individual or company’s computers, encrypts sensitive data and sary for business purposes.

• Make sure your workstations, servthen demands some form of payment ers and networks are patched and to decrypt it. Essentially, ransomware up to date with critical hardware and allows hackers to hold data, or entire software updates. networks, hostage until a ransom is • Make sure your anti-virus and antipaid. Based on reports from victims of malware software is up to date ransomware, paying the ransom does

t’s hard not to hear about cybersecurity in mainstream media. Daily threats, breaches and incidents can be found in most daily headlines. If you didn’t attend WMC’s Focus on Manufacturing breakfast in February, you may have missed some valuable information to help protect your business.

With over 20 years of experience, FBI Special Agent Byron Franz, spoke

and are auto scanning systems on a regular basis.

• Make sure data is configured with access controls. Limit employees access and privileges to data they need to perform required tasks. Limiting access can cut down on the overall impact should you be infected and increase the restoration time.

• Confirm that your critical data is being backed up regularly and can be restored. Backups should be stored off of your network and unavailable to the outside world.

• Confirm that your business continuity plan (BCP) is updated and tested and ready to be implemented.

What can you do if you have been hit by ransomware? Contact your local FBI field office immediately at fbi.gov/contact-us/field-offices for assistance. You are also encouraged to log your case on their internet crime complaint center at ic3.gov. The entire state of Wisconsin is covered by the Milwaukee field office located at 3600 S. Lake Drive, St. Francis, WI 53235. They can be reached by phone at (414) 276-4684 or on the web at milwaukee.fbi.gov.

Cybersecurity threats will continue to be an issue as technology continues to evolve. We can no longer rely on spelling and grammatical errors that had previously indicated suspicious emails.

And remember, just because an email looks like it is coming from a familiar source, does not mean it is always true.

When in doubt, avoid clicking on any links or attachments. n

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M OT Y / M A N U FAC T U R E R O F T H E Y E A R AWA R D S

Seven Companies Win

29th Annual Wisconsin Manufacturer of the Year Awards 29th Annual Wisconsin Manufacturer of the Year Award Winners: Grand Awards: • General Plastics, Milwaukee – Small Category • Hyrdo-Thermal Corporation, Waukesha Medium Category • Mortara Instrument, Inc., Milwaukee – Large Category • Greenheck, Schofield – Mega Category Special Award Winners: • Sargento Foods Inc., Plymouth – Community Stewardship • Orion Energy Systems, Manitowoc – Market Adaptability • Midwest Prototyping, Blue Mounds – Emerging Technology

Louie Gentine of Sargento Foods Inc. accepts a Manufacturer of the Year award for Community Stewardship.

Tim Kilgore of Greenheck in Schofield accepts the Manufacturer of the Year award in the Mega Category.

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Seven Wisconsin companies were awarded prestigious Wisconsin Manufacturer of the Year (MOTY) Awards for outstanding achievements in manufacturing. The winners were announced Thursday, February 23 at a black-tie banquet honoring the 26 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.

“This program honors top manufacturers in our state and highlights their impact on Wisconsin’s economy,” said Kevin Heppner, Managing Partner at Baker Tilly. “A strong manufacturing sector leads to countless jobs for Wisconsinites.”

In its 29th 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 continu-

M A N U FAC T U R E R O F T H E Y E A R AWA R D S / M OT Y

Brian Brenegan of Mortara Instrument, Inc. in Milwaukee accepts the Manufacturer of the Year award in the Large Category.

Lt. Gov. Rebecca Kleefisch delivers remarks at dinner.

Bob Porsche of General Plastics in Milwaukee accepts the Manufacturer of the Year award in the Small Category.

Steve Grundahl of Midwest Prototyping in Blue Mounds accepts a Manufacturer of the Year award for Emerging Technology.

ous improvement, commitment to employees and effective research and development. Award winners were selected by an independent panel of judges.

“Our winners, nominees and manufacturers all across the state help to build up our local economies,” added David Krutz, Managing Partner at Michael Best. “These companies provide family-supporting careers that create a vibrant middleclass.”

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 community stewardship, market adaptability and emerging technology.

“Our state’s manufacturers are a critical part of Wisconsin’s heritage and Wisconsin’s future,” said John Scribante of Orion Energy Kurt R. Bauer, President/ Systems in Manitowoc accepts a CEO of Wisconsin ManufacManufacturer of the Year award for turers and Commerce. “We Market Adaptability. are proud to honor many of the manufacturers at this program that are utilizing new technologies and innovation that will change the way we look at the industry.”

The accounting and advisory firm of Baker Tilly, the law firm of Michael Best and the business association Wisconsin Manufacturers and Commerce sponsor the Manufacturer of the Year Awards Program. n

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W I S C O N I S N SA F E T Y C O U N C I L

The Newest Threat to Risk Management: People Risk

By Chad Tisonik, President and Managing Principal of HNI Risk Advisors of Wisconsin, Past Chair of the Wisconsin Safety Council Board

T

op-level executives should take risk management seriously.

Survival is at stake. It’s tough to point the finger at anyone else when shareholder value is eroded, a brand is damaged or catastrophic loss occurs.

But, the types of risks that organizational leaders have to manage are ever-changing.

The world around us is rapidly evolving, and we are faced with economic, social, cyber and political risks like

What is people risk? People risk is having the wrong people in the right positions. People risk is the failure to understand brand. People risk is having a weak tone at the top that sets little precedent. People risk is a leadership failure that trickles down.

People risk is the uncontrollable side of what people do. We view people risk as a hidden, budget-busting risk.

We believe that people and culture eat strategy for breakfast. In other words, people and culture make – or break – your organization.

This risk directly “What is people risk? People affects your culture, brand, operrisk is having the wrong ational efficiency people in the right positions.” and your profitability. Effective leaders of people risk squash organizational inconsistency by living the never before. Can a false tweet cause brand. Leaders who effectively manage the market to crash 1,000 points? Can people risk have an uncanny ability a serious employee injury impact your to visualize the unknown, strategize bottom line? Can one unsatisfied cusand move the right people into the foretomer reduce sales via social media? front to lead. They partner with highlyThe answers are yes, yes and yes! skilled professionals. They are acceptHow Can You Identify People Risk? ing of risks, and thrive on solutions.

Most organizations are managing They insist on identification of these some of their risk via an insurance risks, and they insist on transparency policy and risk retention. They are com- and lightning-fast action. fortable, although they are primarily in a Fear of change is a cornerstone of reactive role and tend to miss the riskipeople risk. When your people fear est part of the equation: people risk. change, the status quo remains – and

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the evolution of your organization stagnates. Standing still is no way to compete in the marketplace. While people risk management may be a new concept, this is a vital function for everyone in any leadership function (formal or otherwise). Let’s explore the four types of people risk that “people risk managers” should focus on to mitigate risk to their organization.

People Risk #1: Corporate Culture

Corporate cultures are evolving — that is an unavoidable fact. The variable is who will shape, lead and manage that change. Culture is a lot like trust. It takes years to build and moments to damage. Positive culture does not happen overnight. People will keep doing what they’ve always done.

Even with focused leadership, it may take years to get everyone thinking like an owner and making vision/missiontype decisions. A weak culture poses a major risk to an organization.

People Risk #2: The Intangible Asset You’re Probably Not Leveraging

Corporate brands are personal. A weak or non-existent brand poses a huge risk because employees do not feel part of a mission. Fear – fear that sales will decline or that customers will leave – becomes the motivation of your people. The mission in a fear-driven organization is to do whatever you can to keep that fear at bay. This mindset

W I S C O N I S N SA F E T Y C O U N C I L rejects creative problem solving and embracing risk as a profit center. The M.O. is to keep doing what you’ve always done. But that leads to more of the same. Be aware that your competitors have “more of the same” all figured out. Fear of change is what sinks organizations with a weak brand.

Remember, your brand is not what you say it is – it’s what they say it is.

Your brand is a moving target. Manage it or ignore it at your own peril. If your organization embraces its internal brand and projects it outward – with clients, prospects, centers of influence and future team members – what you say your brand is and what they say your brand is should come into alignment. Your employees are your brand vanguards. They are most challenged to live the brand because their audience can change the perception of your brand with one comment on social media, a text to a spouse or an offhand comment to a co-worker.

A strong brand breeds pride in the workforce as people feel tied to the greater good. They use your brand as a touchstone for handling difficult situations. They stop making decisions based on fear of changing the game because the brand is empowering.

Constructive creativity comes from having a framework for your people’s efforts. Your brand is that framework — a set of rules that’s your rallying cry.

Leverage that rallying cry for consistent and powerful results.

People Risk #3: The Big ‘So What?’: Why Your Employees Need to Know ‘The Why’

Helping people understand “The Why” is one of the most critical – and difficult – elements of managing people risk. This is true whether you’re implementing a new safety program or a new sales strategy. Change never will take place organizationally until people understand “The Why.”

Recently, a firm wanted to make some improvements in their safety program. They hired a new employee from a larger manufacturer. This person was simply told to implement the same program he had implemented “where he came from.” You can guess what happened. It was chaos!

Established, long-term “A” players became frustrated and left the organization. Who remained were the “B” and “C” players with the new change specialist.

This was not a recipe for success. The proper way to handle this would have been to communicate the strategy in a more proactive manner, communicate why implementing the change was important, considering everyone’s input, and then enlisting employees to work together so that all employees understood the importance of change. Don’t underestimate the importance of answering “So what?”

People Risk #4: How Transparency Will Save You Money and Headaches

When channels of communication are opened throughout an organization, you can begin to identify and discuss emerging issues related to risk before they become a crisis.

Adopting social, collaborative communication platforms allow for broad sharing of ideas. Where possible, start “wide” with dialogue, making it accessible to anyone. The stream of who can view discussions can be narrowed to accommodate more sensitive thoughts.

This broadcasting mindset drives accountability among your people. Today, social media is a way to build employee engagement and community across unique offices in different locations.

Culture is strengthened by these tools, and they’re absolutely not time wasters, as some objectors might call them. Use social media to support collaboration and efficiency.

Transparency fuels market intelligence, an asset you can leverage.

Organizations that have a culture that discourages these “wide” discussions could suffer from a degree of overconfidence or possibly denial at the top levels. Management decision making without transparency or staff education usually will lead to a large degree of organizational waste.

How to Start – and How to Continue – Change

People risk management is a team sport. One cheerleader or even a few executives never will make or sustain an impact on corporate culture. The result you’re after will not take place after one meeting when “we have a new culture” (or a new brand, new process or new anything) is announced. Managing the people side of risk will take years and will never end. Change has to be felt on an ongoing basis.

Employees must see how they fit, feel like they are heard and learn what gets implemented and why. Managers must communicate and collaborate on stability of infrastructure. All members of the organization must know the rules of the game and why what they do is important. Now, everyone can be held accountable for the ultimate mission, vision and profit. Any bad actors must be given the opportunity to change in short order, or they must be removed from the team. n Chad Tisonik is the President and Managing Principal of HNI Risk Advisors of Wisconsin, a performance-driven risk advisory that helps business builders de-risk their business and boost performance. He has dedicated his career to helping Wisconsin businesses become safer, more productive and profitable so they can ultimately inspire, grow and break-free. He is past Chairman of the Wisconsin Safety Council, current Judge for the Wisconsin Manufacturer of the Year Awards, and proudly sits on the WMC Foundation Board.

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2017 SAFETY TRAINING Chapter of

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

WISAFETYCOUNCIL.ORG MILWAUKEE AREA SAFETY TRAINING JUNE 14 NEW! The Five Fundamentals of Safety JUNE 19-20 OSHA 10-Hour Voluntary Compliance for General Industry AUGUST 10 Creating a World Class Safety Culture SEPTEMBER 12 NEW! OSHA 101 for Small Business: A Crash Course in Workplace Safety OCTOBER 11 Coaching the Lift Truck Operator, Train-the-Trainer DECEMBER 4-7 OSHA 30-Hour Voluntary Compliance for General Industry

MADISON AREA SAFETY TRAINING APRIL 20 OSHA Construction Breakfast “Job Site Safety” MAY 8-11 Safety Training Methods (STM) MAY 17 OSHA Construction Breakfast “DOT Hours” MAY 18 Safety Inspections JUNE 13 OSHA 7845 Recordkeeping Rule JUNE 22 Job Safety Analysis JULY 12 NEW! Safety for Manufacturing – What & How JULY 18-20 OSHA 2055 Cranes in Construction AUGUST 7-10 Principles of Occupational Safety & Health (POSH) AUGUST 23 Coaching the Emergency Vehicle Operator (CEVO): Ambulance and Fire AUGUST 28-30 Instructor Development Course (IDC): First Aid/CPE/AED SEPTEMBER 5-8 OSHA 501 Trainer Course in Occupational Safety & Health Standards for General Industry

SEPTEMBER 18-21 OSHA 30-Hour Voluntary Compliance for General Industry OCTOBER 3 RCRA Compliance for Hazardous Waste Generators Overview (AM) OCTOBER 3 DOT Hazmat Transportation Refresher (PM) OCTOBER 5 Confined Space, Train-the-Trainer OCTOBER 6 Lockout/Tagout, Train-the-Trainer (AM) OCTOBER 10 Coaching the Lift Truck Operator, Train-the-Trainer OCTOBER 16-19 Safety Management Techniques (SMT) NOVEMBER 9 Ergonomics: Managing for Results NOVEMBER 14

NEW! The Five Fundamentals of Safety DECEMBER 12 Effective Team Safety

FOX VALLEY/GREEN BAY AREA SAFETY TRAINING MAY 11 NEW! OSHA 101 for Small Business: A Crash Course in Workplace Safety SEPTEMBER 14 Effective Team Safety SEPTEMBER 28 Incident Investigation: A Root Cause Analysis OCTOBER 12 NEW! Safety for Manufacturing – What & How OCTOBER 19 Safety Inspections OCTOBER 26-27 OSHA 10-Hour Voluntary Compliance for General Industry

WAUSAU/EAU CLAIRE AREA SAFETY TRAINING JULY 18-19 OSHA 10-Hour Voluntary Compliance Course for General Industry AUGUST 24 Coaching the Lift Truck Operator, Train-the-Trainer

TO HAVE YOUR COMPANY FEATURED, CONTACT NICK NOVAK AT NNOVAK@WMC.ORG

ORION ENERGY SYSTEMS

MANITOWOC ORIONLIGHTING.COM

GENERAL PLASTICS

Orion Energy Systems is leading the transformation of commercial and industrial buildings with state-of-the-art energy efficient lighting systems. The company manufactures and markets a portfolio of products encompassing LED solid state lighting and high intensity fluorescent lighting.

MILWAUKEE GENPLAS.COM General Plastics, Inc. is a full service custom plastic thermoformer that manufactures products for numerous markets. The majority of its products are cosmetic, protective parts on the inside or outside of vehicles, equipment or displays that make customers’ final products aesthetically pleasing.

MIDWEST PROTOTYPING Midwest Prototyping

BLUE MOUNDS MIDWESTPROTO.COM

Midwest Prototyping is an additive manufacturing service bureau, producing prototype and production parts via industrial-scale 3D printing. They provide a wide variety of manufacturers, developers, designers and engineers with efficient and innovative ways to bring projects to life faster than ever before.

GREENHECK

SCHOFIELD GREENHECK.COM Greenheck is a leading manufacturer of commercial, institutional and industrial air movement, control and conditioning equipment. Even with significant growth in international operations, approximately 75 percent of current international sales are exported from its plants in Wisconsin.

SARGENTO FOODS INC. PLYMOUTH SARGENTO.COM

Sargento Foods Inc. is family-owned and operated. Best known for its packaged shredded, sliced and snack natural cheeses, Sargento also provides cheeses, appetizers and sauces to restaurants and food manufacturers.

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C E O P RO F I L E

Nikolai Draws on Experience as Waupaca Foundry Leader

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ike Nikolai has served as President/COO/CEO of Waupaca Foundry since July 2016. Nikolai first joined Waupaca Foundry in 1994 as a Metallurgist after receiving his Master of Science degree in Metallurgical Engineering from the University of WisconsinMadison. In 1998, he was promoted to Production Manager in Tell City, IN before becoming Plant Manager at the Etowah, TN operation for Waupaca in 2005.

Three years later, Nikolai was promoted to Director of Operations, followed by Vice President of Operations in 2012. He became President and Chief Operating Officer in 2015 before adding the title of Chief Executive Officer in 2016.

Nikolai also holds a Bachelor of Science degree in Material Sciences and Engineering from UW-Madison and a Master of Business Administration from the University of Louisville.

He lives in Waupaca, WI with his wife Emily and three boys, Sam, Vin and Jay.

Outside Activities

Mike and his family annually support Rich Seubert’s Celebrity Trap Shoot hosted by the Marshfield Clinic as well as various school and youth sports fundraising efforts. When Mike isn’t working, you’ll spot him in the stands cheering on his sons’ school and traveling baseball and hockey teams.

An avid hunter, Mike enjoys hunting for sport including elk, bear, pheasant and more. He also enjoys skiing, camping and traveling with his family and close friends.

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

Saving Energy and Money for Wisconsin

visit focusonenergy.com/business

to Find MorE WayS to SavE and control your EnErgy uSE

Affordable Insurance Options SINCE 1957, WMC HAS OFFERED ITS MEMBERS GROUP INSURANCE OPTIONS THAT LEVERAGE OUR COLLECTIVE PURCHASING POWER.

GROUP LIFE & DISABILITY PLANNING, PRODUCTS & ADMINISTRATION Brought to you by WMC and Aetna WMC has a dedicated and experienced team of insurance professionals who work with members and their insurance agents to deliver competitive group disability and life products to meet your employee benefits needs. We also provide assistance in plan implementation, employee communications, claim processing and handle premium billing administration.

• Group Life/AD&D* - WMC offers its members Group Term Basic Life, Supplemental and Dependent Term Life, and Accidental Death & Dismemberment insurance.

• Short Term Disability* – Fully-insured STD plans providing income protection for employer-sponsored group plans with funding options, including employer-paid, contributory (inc. core/buy-up), and voluntary (employee-paid) group plans.

• Long Term Disability* – LTD plans with a focus on rehabilitation and return-to-work services. A variety of funding options, as reflected above, are available.

• bswift Administration Portal – WMC’s Employee Benefits team administers eligibility, enrollment and premium billing for the above plans on employer specific bswift portals with direct HR access for larger employers.

• Aetna Absence Management – Turn-key self-service solution for larger employers (100+ EEs) to administer Federal and State FMLA guidelines with an upgrade option to include Company/Union specific leave policies (i.e. PTO, vacation, sick-leave, jury duty, etc.). *Insurance products underwritten by Aetna Life Insurance Company.

D C F LY- I N

Attendees with U.S. Sen. Ron Johnson during a meeting on Capitol Hill.

LOCAL CHAMBERS, WMC PARTNER FOR WASHINGTON, D.C. FLY-IN

A

short time after Washington, D.C. welcomed a new president to the Oval Office, the nation’s capital welcomed more than 40 individuals from local chambers, local businesses and Wisconsin Manufacturers and Commerce (WMC). The two-day event was the first of its kind from Wisconsin, and it was a chance for folks from across the state to meet with their representatives and discuss policies facing local businesses.

WMC organized the trip – which was sponsored by Southwest Airlines – from February 7-8, and it included meetings with Republican Sen. Ron Johnson and Democrat Sen. Tammy Baldwin. The group also met with congressional staff, U.S. Rep. Glenn Grothman, U.S. Rep. Jim Sensenbrenner and newly elected U.S. Rep. Mike Gallagher.

“This was a great opportunity for our local chambers of commerce and businesses to meet with our state’s con-

Attendees with U.S. Rep. Mike Gallagher during a meeting at his office.

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Attendees with U.S. Sen. Tammy Baldwin during a meeting on Capitol Hill.

gressional delegation,” said WMC President/CEO Kurt R. Bauer. “We discussed how our representatives could take the lead on promoting a pro-business agenda in Congress, and each attendee had the opportunity to discuss the challenges they are facing here in Wisconsin.”

In addition to meetings on Capitol Hill, the group also went to a briefing by the U.S. Chamber of Commerce. The U.S. Chamber shared insights into what their top issues would be in the coming months and listened to how they could help those at the local and state level.

Overwhelmingly, WMC members feel that regulatory issues are the biggest hurdle they face when it comes to government, but many businesses are also concerned with the lack of skilled workers. A recent survey found that 70 percent of WMC members are currently having trouble finding workers to fill positions they have available today.

These and issues of taxes, health care and others were discussed during the trip.

While this was the inaugural Washington, D.C. Fly-In planned by WMC, the group plans to expand it next year to allow more chambers and businesses to speak directly to their elected officials. n

WMC IN VIEW

WMC President/CEO Kurt Bauer announcing WMC’s support for U.S. Supreme Court nominee Neil Gorsuch at a press conference with Attorney General Brad Schimel and Gov. Scott Walker.

WMC President/CEO Kurt Bauer appears on UpFront with Mike Gousha to discuss the findings of a recent WMC poll about issues being discussed at the State Capitol.

Wisconsin Safety Council's young professional group gathers at Wausau Window and Wall Systems for training and a tour.

WMC Senior Vice President of Government Relations Scott Manley debates state Rep. Gordon Hintz (D-Oshkosh) about the importance of the Manufacturing and Agriculture Tax Credit on Capital City Sunday.

WMC President/CEO Kurt Bauer with Rep. Diane Hesselbein (D-Middleton) at the Business Day Reception.

WMC staff support the American Heart Association’s national “Wear Red Day” to raise awareness about heart disease.

Business World Director Jack Orton kicks off the first Mini-Business World event at Mauston High School, bringing together all the local high schools in Juneau County..

WMC’s government relations team and Amanda Payne from the Waukesha County Business Alliance meet with Speaker Paul Ryan at his Janesville office to discuss tax policy.

wisconsinbusinessvoice.org

April 2017 45

WISCONSIN CHAMBER OF COMMERCE EXECUTIVES

We are the Heart of Wisconsin

By Melissa Reichert Heart of Wisconsin Chamber of Commerce President

W

hat does the Chamber of Commerce do? Based on the calls we get to our office, it seems that many residents view the chamber as their one call for help. One of the first calls received when I started working at the chamber was from a lady who wanted me to schedule pest control services for her because she had bugs. Residents also know that we are the go to place for business referrals, start up information, community events and gift certificates.

Although the day-to-day activities vary, the answer to what we do at the Heart of Wisconsin Chamber of Commerce (HoW CoC) is Empower, Network and Promote: people, businesses and resources. This is accomplished through empowering people to start new businesses and grow existing ones with revolving loan funds and business training. Our business retention and

CHAMBER FUN FACTS Wisconsin Rapids Wisconsin Rapids was the birthplace and home to Myron “Grim” Natwick, the “animator’s animator,” and creative genius behind Fleischer Studios’ cartoon character and cultural icon, Betty Boop.

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expansion team empowers business by assisting with solutions to challenges. The Community Leadership program encourages businesses to give back locally.

Students in our middle and high schools are empowered through career bus tours that provide information to help plan their future education. Legislative breakfast events get information about government and the individuals who hold and run for elected positions.

Networking is a way of life for the HoW CoC. Local Leads groups gather to share business leads and opportunities with one another. This results in an average of $250,000 in business transactions being conducted through participation in the group. The Annual Dinner Meeting is another event that is synonymous with networking. President of the Regional Economic Growth Initiative, Rick Bakovka shares, “The Heart of Wisconsin Annual Meeting and Awards night is a celebration of personal and business success for the past year.

The networking and relationship building that occurs this night renews the friendships and expectations, the enthusiasm and optimism to succeed in the year ahead.”

Events such as Lunch by the River in Wisconsin Rapids, Rendezvous by the River in Nekoosa and Gather by the Gazebo set the stage for networking in a

“What we do at the Heart of Wisconsin Chamber of Commerce is Empower, Network and Promote.” setting filled with entertainment, food and fun. The Summer Hummer golf outing and Mardis Gras Business Expo also provide business to business sales connections in a relaxed environment.

Charissa Lager of Daily Tribune Media shares, “Becoming more connected with the community and events made membership very attractive. The additional resources for networking with LEADS, ambassadors and Business After Hours helps connect me and my business with others in the business community.”

Promotion of our people, businesses and resources takes many forms. It includes advocacy for our businesses at the state level during Central Wisconsin Days. Industry promotion can be found in events such as the Cranberry Blossom Festival each June. Member business referrals, Food Recommendation Fridays and other social media marketing campaigns promote the business community. Wisconsin Rapids Mayor Zach Vruwink sums it up nicely, “HoW CoC provides businesses of all sizes an opportunity to be connected, have a voice and further their success in Wisconsin Rapids.” n

Activity: Industry: Widgets: Soils: Method: Material: Product: Key Features:

Critical Cleaning - New Food Manufacturing - Retail Baking Pump Housings & Other Equipment Food Processing Residue / Lubricants Agitation Parts Washing Steel - Mild Mirachem 500 Performance

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