WI SUPREME COURT
WORKFORCE
HEALTH CARE
CEO SURVEY
Justice Dan Kelly
Partnering with Dept. of Corrections
Reining in High Costs
Economic Optimism in 2020
Winter 2020 Issue 35
Steve L oehr Incoming WMC Chairman
Featured Story:
The New Fringe Benefit
wisconsinbusinessvoice.org
BUSINESS DAY IN MADISON
FEBRUARY 26, 2020 § 9:00 AM - 3:00 PM
Monona Terrace Community & Convention Center, Madison, WI
ADMIRAL JAMES A. WINNEFELD, JR.
SCOTT MOORE
WILSON JONES
GUY BENSON
WELCOME RECEPTION: February 25, 2020 at The Madison Club, Madison
Business Day in Madison brings business leaders from all over the state together to discuss important issues facing the business community and our state. We invite you to attend what is certain to be an insightful program.
LEADERSHIP & TEAM BUILDING: Scott Moore, retired United States Navy SEAL Rear Admiral and an expert
on building and leading “No-Fail” teams.
WISCONSIN 2020: Guy Benson, political editor of Townhall.com, Fox News correspondent and author will give an update on Washington, D.C. politics, and how Wisconsin will factor into the 2020 elections.
GEOPOLITICAL BRIEFING & OPIOID EPIDEMIC: Admiral James A. Winnefeld, Jr., retired
United States Navy Admiral, former Vice Chairman of the Joint Chiefs of Staff, and co-founder of Stop the Addiction Fatality Epidemic (SAFE) Project to fight opioid addiction.
CEO BRIEFING - WORKFORCE & TALENT ATTRACTION: Wilson Jones, President/ CEO of Oshkosh Corporation – a Fortune 500 company with over 15,000 employees and $7.7 billion in revenue.
You are invited to a Welcome Reception at the Madison Club on the evening before, Tuesday, February 25, 2020 from 5:00 - 7:00 PM. Early-bird Rate, Register by January 31: $145/per person ~or~ $1,100/table of 8 Regular Rate: $175/per person ~or~ $1,300/table of 8 2
Visit www.businessdayinmadison.com to register! | Winter 2020
wisconsinbusinessvoice.org
In This Issue...
Winter 2020 Issue 35
PAGE 24
The New Fringe Benefit 6
F RO M T H E P R E S I D E N T Farm, Factory and Commerce
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W I S C O N S I N S U P R E M E C O U RT Judicial Philosophy Matters
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C R I M I N A L J U ST I C E R E F O R M Department of Corrections Offers Talent Solution
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H E A LT H CA R E P O L I CY Solving High Health Care Costs
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S M A L L BU S I N E S S S P OT L I G H T Ideal Builders
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INCOMING WMC CHAIRMAN Kwik Trip’s Steve Loehr
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F E AT U R E D STO RY Company Culture: The New Fringe Benefit
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W M C C H A I R M A N 2 018 - 2 0 2 0 “Statesman Smith” Saw Success as Board Chairman
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W M C C E O E C O N O M I C S U RV E Y Workforce, Tariffs are Biggest Challenges
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W I S C O N S I N BU S I N E S S WO R L D Business is a Force for Good
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W I S C O N S I N BU S I N E S S N E W S News Briefs from Around the State
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NESS BUSI S NEW
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Table of Contents | wisconsinbusinessvoice.org
Winter 2020
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A Look Backward and Forward
WISCONSIN
President/Publisher Kurt Bauer
Managing Editor Nick Novak
By Nick Novak WMC Vice President of Communications & Marketing
Art Direction/Production
A
Kurt R. Bauer, Nick Novak, Scott Manley, Kevin Carr, Chris Reader, Cory Fish, Marie Hull, Wade Goodsell, Michelle Grajkowski, Bryan Albrecht, Scott Henke
s the new decade starts, it made me think about what the last 10 years meant for the business community. While the Great Recession officially ended in 2009, Wisconsin’s economy was still feeling the ill effects as the last decade began, as were the state’s finances. That led newly elected Gov. Scott Walker to introduce a budget repair bill – eventually known as Act 10 – that provoked massive protests at the State Capitol, and in front of the WMC Building. Protesters even targeted the home of Kurt Bauer, who had just been announced as the new WMC President & CEO. WMC was a vocal supporter of Act 10 with its bold fiscal and collective bargaining reforms. WMC continued to play a leading role in many of the pro-growth reforms that punctuated what we sometimes refer to as the Era of Reform. This included tax, litigation, labor and regulatory reforms that fundamentally changed Wisconsin’s business climate for the better. Highlights of the hundreds of reforms include the Manufacturing and Agriculture Tax Credit, numerous limits on the power of unelected bureaucrats to promulgate rules that have the force of law, restrictions on frivolous lawsuits and making Wisconsin the 25th Right to Work state. There was a ferocious backlash to these legislative successes. State senators were recalled along with Gov. Walker. The governor became the first in U.S. history to survive a recall in 2012 and was then reelected in 2014. Shortly after, Walker’s run for president would unfortunately slow
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Kyle Pankow
Contributing Writers
Advertising Sales Nick Novak, nnovak@wmc.org
the momentum for reform. A John Doe investigation was also initiated in 2013 to punish Walker and his supporters, including WMC. We challenged the investigation from day one on the grounds there was no probable cause of wrongdoing. In fact, WMC never received a shred of evidence justifying our inclusion in the investigation. But the resolve of the prosecutors, along with far too many of the state’s media establishment, to exact revenge for Act 10 was strong and the John Doe investigation continued for years eventually leading to nothing more than legal fees in the seven figures. Walker was defeated by Tony Evers in 2018, beginning a period of divided government that continues into the new decade. Evers included the repeal of many of the reforms championed by WMC during the 2010s in his 2019 budget bill, but all of those provisions were removed at WMC’s urging. Looking ahead, WMC will fight to protect and build upon the hard fought reform victories that have clearly made Wisconsin a better place to start, run and grow a business. n
wisconsinbusinessvoice.org | From the Editor
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 & Commerce WMC501 @WisconsinMC
February 20, 2020 The Pfister Hotel Milwaukee
NOMINEES Artemax, Inc.
Generac Holdings, Inc.
Octopi Brewing
Automation Components, Inc.
Greenheck Group Schofield
Orion Energy Systems, Inc.
Chapter 2, Inc.
Hydro Electronic Devices (HED, Inc.)
Outlook Group
Empire Screen Printing, Inc.
Lemke Industrial Machine LLC
Poblocki Sign Company LLC
Felss Rotaform LLC New Berlin
MBK-WI, Inc. d/b/a Freedom
Power Test Inc.
First Choice Ingredients, Inc.
MCL Industries, Inc.
Fox Valley Wood Products, Inc.
Metal-Era Inc.
Gamber-Johnson LLC
Nueske’s Apploewood Smoked Meats
New Berlin
Middleton
Lake Mills
Onalaska
Germantown
Kaukauna
Stevens Point
Waukesha
Hartford
Marathon City
Milton
Pulaski
Waukesha
Waunakee
Manitowoc Neenah
Milwaukee Sussex
Professional Plating Brillion
Stoughton Trailers LLC Stoughton
XeteX, Inc. La Crosse
Wittenberg
Register to attend at www.wimoty.com Questions? Contact Nick Novak at 608.258.3400
Farm, Factory and Commerce By Kurt R. Bauer WMC President & CEO
T
he title of this column comes directly from WMC’s first tagline, which was actually incorporated into the logo. WMC was founded in 1911 as the Wisconsin Manufacturers’ Association by the state’s leading industrialists of the time. But interesting enough, those farsighted business leaders understood that Wisconsin’s communities – whether rural or urban – are intertwined and interdependent. Fast forward 109 years to today and WMC Foundation, through its Future Wisconsin Project, is focusing on some of the biggest problems facing rural
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Wisconsin. Indeed, that was the theme of last December’s Future Wisconsin Summit (pg. 30) and later this year WMC Foundation will release a white paper covering rural issues. Among other things, the white paper will include information amassed during statewide listening sessions held last fall. What we learned from those sessions probably won’t surprise you. As with the rest of the state, the consensus biggest challenge facing rural Wisconsin is population-related, which impacts workforce, the tax base, enrollments in local K-12 and post-secondary schools,
wisconsinbusinessvoice.org | From the President
the viability of downtown businesses, access to essential services like banking, pharmacies, groceries, health care and first responders. On that topic, U.S. Sen. Tammy Baldwin is championing federal legislation to incentivize people to join volunteer fire departments. Access to broadband was also mentioned, but wasn’t as high on the list of issues as we thought it would be going into the meetings. Nonetheless, as the world becomes ever more dependent on electronic and digital…well…everything, the lack of high-speed internet will isolate large parts of Wisconsin
from the outside world. While Wisconsin isn’t the only Midwestern state with rural challenges, I argue we may be more pronounced here because of our unique population and GDP distribution. Wisconsin’s population is 5.8 million and statewide GDP was $336.97 billion in 2018. The Milwaukee metropolitan statistical area (MSA) has a population of 592,025, which is just above 10 percent of the state’s population. Economically, Milwaukee contributed about 31 percent of the state GDP ($103.73 billion) in 2018, although I believe that number includes a broader swath of southeastern Wisconsin. For its part, the Madison MSA has a population of 578,000, which is just under 10 percent of the state population,
While Wisconsin isn’t the only Midwestern state with rural challenges, I argue they may be more pronounced here because of our unique population and GDP distribution. and accounted for 15 percent of GDP ($51.48 billion) in 2018. So combined, Milwaukee and Madison have about 20 percent of state population and produce roughly 46 percent of GDP, demonstrating that population and economic activity is generally spread out throughout the state By comparison, at least 55 percent of Minnesota’s 5.6 million population is concentrated in Minneapolis-St. Paul, and 77 percent of Illinois’ 12.7 million people live in Chicagoland. Further, both the Twin Cities and Chicago generate about 70 percent of their respective states’ GDP. Wisconsin really isn’t even like Iowa because of its lack of a big metro. The Hawkeye State has a population of 3.1 million, but their largest city, Des Moines, is only around 210,000 people,
WMA Logo from meeting minutes, August 14, 1953.
or just 6.6 percent of the state’s population. Instead of one dominant metropolitan area, like Illinois and Minnesota, Wisconsin has multiple “micropolitans,” like Green Bay, the Fox Cities, Eau Claire, La Crosse, Janesville-Beloit, Racine-Kenosha, Wausau-Stevens Point and Superior. This is why I often say Wisconsin has the best small- and medium-sized towns and cities that no one outside the state has ever heard of. Three other challenges discussed during the WMC Foundation listening sessions were the agricultural economy – especially dairy – affordable housing, and the lack of what might be best described as institutional capacity. The dairy industry’s woes have been well documented. Wisconsin lost 773 dairy farms in 2019 and 691 in 2018. Milk prices are rebounding and expected to be stable throughout 2020, which is good news. But dairy continues to face hurdles from local permitting and overzealous environmental regulation intended to stifle growth. At first glance, the housing issue seems to be a paradox. How can you say a declining population is creating workforce shortages at the same time there are complaints about the lack of housing? But I have heard for years that affordable housing outside of metro areas is in short supply and is deterring people from living and working in rural Wisconsin. Compounding the problem is a “Not in My Backyard” attitude when developments have been proposed to solve the problem. And some areas
of the state also report an absence of higher-end housing required to attract executive talent, or apartments, condominiums or townhouses with the amenities young people desire. The so-called institutional capacity issue revolves around local and/or regional leadership. Who are the change agents and visionaries planning for rural Wisconsin’s future, given that low birth rates are projected to continue beyond mid-century and will be an incredibly disruptive economic and societal force? Who are the facilitators who
Low birth rates are projected to continue beyond midcentury and will be an incredibly disruptive economic and societal force.
can bring diverse stakeholders and problem-solvers together? As the head of the state chamber of commerce, I think that local chambers need to fill this leadership vacuum, where it exists, and help the WMC Foundation address this critical challenge to our state.
For the Record Changing topics…I discussed in my last column (Fall 2019) reasons why Wisconsin may have lost 5,200 manufacturing jobs from August 2018 to August 2019, as had been reported by Bloomberg News. At the end of the column, I mentioned that an economist friend of mine warned that the numbers would likely be revised upward when the far more accurate quarterly data is released by the federal Bureau of Labor Statistics (BLS). In fact, my friend was right. Before the end of 2019, BLS said Wisconsin actually gained 8,800 manufacturing jobs during a similar time-period reported by Bloomberg. n
From the President | wisconsinbusinessvoice.org
Winter 2020
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Judicial Philosophy Matters By Scott Manley WMC Executive Vice President of Government Relations
D
espite its incredible importance to maintaining the rule of law and protecting individual rights, the Supreme Court in Wisconsin generally garners very little attention from the mainstream media and the general public. A high-profile state Supreme Court case is typically a one-day story. Similarly, state Supreme Court elections get some media attention, but do not dominate the news cycle in the same manner that the nomination of Justices Gorsuch or Kavanaugh did at the federal level. The judicial philosophy of court candidates gets even less attention, which is an unfortunate disservice to voters. No one can predict which cases and legal issues will come before the Wisconsin Supreme Court during the ten-year term of an elected Justice, but understanding a candidate’s judicial philosophy can be a key indicator of how he or she is likely to approach whatever issues do come before the Court. In terms of judicial philosophy, the business community believes strongly in the rule of law, the separation of powers, and the Constitutional principle that the Legislature is the lawmaking branch of government. We view the role of the Supreme Court as a limited one, with the primary purpose of interpreting laws by applying the meaning of the words chosen by the lawmakers who wrote them. We also believe the Court plays a vital role in ensuring that the other branches of government “stay in their
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lane” and exercise only those powers granted them by the Constitution. Supreme Court Justice Dan Kelly has proved himself to be a shining example of how these fundamental principles are upheld on the Court. His approach to deciding cases is the embodiment of a judicial philosophy that adheres to the rule of law, the separation of powers, and the founding principles of the Constitution. In his relatively short tenure on the Supreme Court, Justice Kelly has authored a number of very important and consequential decisions impacting businesses. Following is a list of some of those decisions.
Lamar Central Outdoor v. Division of Hearings & Appeals A very important win for the restraint of the administrative state, this case strongly reaffirmed the requirement that state agencies must promulgate a rule whenever they change their interpretation of a statute. The decision is critical, because it makes clear that agencies cannot simply change the rules of the
wisconsinbusinessvoice.org | Wisconsin Supreme Court
game or regulate on the fly – they must go through the rulemaking process, including public hearings, comment opportunities, and legislative review – prior to changing their regulatory requirements.
Tetra Tech v. DOR This case levels the playing field when businesses and citizens challenge the decisions made by government agencies. Prior to this case, the legal deck was stacked against businesses and citizens because courts would typically “defer” to the expertise and legal interpretations made by agency staff. This decision eliminates deference to state agencies, thereby allowing businesses who challenge agency decisions to be on even legal footing when arguing their case.
Wisconsin Bell, Inc. v. LIRC In this employment discrimination case, the Court held that employers cannot be found to have discriminated against a terminated employee when the employer was not aware that the
employee’s disability was responsible for the behavior that resulted in termination. The Court overturned an ill-considered LIRC decision that expanded employer liability by shifting the burden of proof to employers to prove that they did not intend to discriminate against an employee.
Tracie Flug v. LIRC The Court affirmed limits on using workers compensation to pay for nonwork related injuries. Although the employee in this case mistakenly believed a back surgery was necessary because of a work-related injury, the court held that it was not compensable under the workers compensation law, and the resulting injuries related to the back surgery were not compensable either.
Kieninger v. Crown Equipment Corp. This case involved a question of when employers must pay wages to employees for travel. The Court ultimately decided that employers are not required to pay employees wages during a commute to work, even if the employees are commuting in a company-owned vehicle.
Donna Brenner v. Amerisure Mutual Insurance Co. In this tort liability case, the Court found that a tenant (in this case a manufacturer) who had previously rented space in a building cannot be held liable for an injury that occurred in the building after the lease ended and the tenant had vacated the property. In addition to the decisions Justice Kelly authored, he has voted with the majority on many cases that uphold the rule of law by taking a textualist approach to jurisprudence. Importantly, he has also written or joined dissenting opinions when he believes the majority is wrong on the law. One of the candidates running for Supreme Court in April stated publicly that she wanted to promote social justice by reforming our criminal justice system. Reasonable people have differing opinions on how to reform our criminal justice system, which is precisely why this type of policy reform is the purview of the Legislative Branch of government. Our Constitution vests policymaking in the Legislative Branch to ensure that policy decisions reflect the will
of the people, and are done through a transparent process that includes public meetings and input. This is a far more democratic process for making decisions impacting the rights and responsibilities of Wisconsin’s citizens than a judge declaring policy for the entire state by edict. I would encourage judges whose ambitions are focused on policy reform to run for the Legislature instead of the judiciary. The issue of judicial philosophy boils down to a very simple question. Should Supreme Court Justices respect the limited role of the courts to interpret the law based upon the text written and enacted by the Legislature? Or should justices take on the role of an activist by invalidating laws they disagree with, remaking laws as they see fit, or simply ignoring the law altogether? The former is the appropriate role of the judiciary as enshrined in the principles upon which our state was founded. The latter usurps the authority of the Legislative Branch and overturns the will of the people. Justice Dan Kelly has adhered to a judicial philosophy that is an outstanding example of the former. n
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Winter 2020
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Department of Corrections Offers Talent Solution By Secretary Kevin Carr Wisconsin Department of Corrections
F
or nearly 40 years, I have worked within law enforcement in Wisconsin, including the Milwaukee Sheriff’s Department and the U.S. Marshalls. And for nearly all of those 40 years, it was my responsibility to apprehend those who committed a crime. It was not my responsibility to make sure they were contributing members of the community once they were released. But, all of that changed one year ago when Gov. Tony Evers offered me the opportunity of a lifetime to serve as the Secretary of the Department of Corrections (DOC). Long before joining the DOC, I often heard that investing in the success of incarcerated individuals was a waste of time, money and effort; I heard that these individuals committed a crime and therefore deserved nothing more than punishment. But, this “lock them up and throw away the key” mentality does not make economic sense, nor is it effective in reducing recidivism and ensuring successful reentry into our communities. In December of 2019, there were nearly 24,000 adults in custody at the state-level, at an annual cost to state taxpayers of more than $33,000 per incarcerated individual. That is a considerable investment that often has me questioning how the average Wisconsinite benefits from this punitive approach. Although the DOC cannot control how many individuals are sentenced to confinement, we do have the ability to support adults in custody on their
paths to reentering society so that upon release, they are capable of positively contributing to the Wisconsin workforce and financially contributing to their families. As WMC members know, Wisconsin is facing significant labor shortages in a number of key industries. To answer the call and address these urgent employer needs, the DOC is working collaboratively in public and private partnerships to train and educate incarcerated individuals. From specialized vocational programming in high-demand fields to customized mobile teaching labs where CNC operations and welding are taught, to investing in job centers where individuals can get resume assistance and connect with employers, the DOC is working to grow Wisconsin’s talent pool. But, it’s not just inside prison walls that the DOC is working to assist
individuals within the criminal justice system and employers throughout Wisconsin. We are partnering with employers to fill their vacancies with individuals who are available for work release programs. These individuals get on-the-job training and earn a livable wage that can increase their reentry success, all while the employer is getting much-needed workers. As I have traveled around the state and met with employers, I often hear from them that the DOC cannot meet their needs fast enough and these employers are proud to be partnering with DOC in supporting individuals on their paths to reentry. It’s a win-win for everyone. Investing in the success of incarcerated individuals is a good bet for Wisconsin taxpayers, the economy and employers. And, from a public safety standpoint, the strongest antidote to recidivism is the dignity associated with working hard, feeling valued and earning a livable wage. Every Wisconsinite benefits far more from the success of these individuals than they do if we simply keep locking them up. We at DOC believe that providing those we care for with the treatment, training and skills needed to not reoffend, to support their families and contribute to our communities as tax paying citizens results in more public safety for us all. n
Criminal Justice Reform | wisconsinbusinessvoice.org
Winter 2020 11
Solving High Health Care Costs By Chris Reader WMC Senior Director of Workforce & Employment Policy
A
nyone who has purchased healthcare services in Wisconsin knows that the cost of health care is high. Study after study verifies this fact. What individuals may not know, unless they spend some time shopping around the country for health care, is that the cost of health care in Wisconsin is routinely ranked as the highest or close to the highest in the nation. The Health Care Cost Institute found that Wisconsin had the second highest health care prices of the 41 states it surveyed, with the 200 most common health services priced in Wisconsin 81 percent higher than average. According to the Healthy Marketplace Index, published by the Health Care Cost Institute, Milwaukee and Green Bay have the fourth and fifth highest health care prices of more than 100 metros it reviewed. Study after study comes back with very similar findings, to the surprise of no one. Health care costs are higher in Wisconsin than elsewhere. Employers have looked at these studies, and at the bills they pay for health insurance for their workforce and their families, and have long wondered why Wisconsin costs seem so out of line nationally. What is special about Wisconsin? WMC member CEOs routinely put the cost of health care as a top issue they face as they try to remain competitive. If you read the rhetoric from defenders of the health care industry, you would think that Wisconsin has a utopia of health care where the quality is far
12 Winter 2020
superior to anywhere else, justifying the high costs. Employers have long scratched their heads at this notion, especially multi-state employers who purchase health care services in other states that is on par with the quality received in Wisconsin but at a fraction of the cost. In December, the Business Health Care Group (BHCG) out of Milwaukee released a study they commissioned from GNS Healthcare in Cambridge, Massachusetts that put the notion of high costs being justified by high quality to the test. The statewide study found emphatically that there is zero correlation between cost and quality. A similar analysis was performed last year by the Workers Compensation Research Institute (WCRI), also out of Massachusetts, looking at the correlation between costs and quality for health care services purchased specifically for worker’s compensation injuries. WCRI also found that the correlation between higher costs and better quality simply wasn’t there. Yet in Wisconsin, that’s what we hear from providers for the reason why health care cost specific to worker’s compensation is the highest in the nation. The Doctor who ran the analytics for the BHCG study, Earl Steinberg, was quoted in the Milwaukee Journal Sentinel story covering the study on December 4, 2019 as saying, “There was no correlation between cost and quality – I mean virtually zero. We can show it. We produced a graph of every doc.”
wisconsinbusinessvoice.org | Health Care Policy
In 2020, WMC will convene a group of employers to work on developing a set of proposals to turn back the high costs of health care. The group will look at best practices, like working with groups like BHCG to unleash consumerism by encouraging employers to seek out the high quality doctors, lower priced doctors, even if it means leaving the state for certain services. It will look at ways to make the state price transparency requirements user friendly so that employers and workers are able to see the quality and cost comparison when making decisions. The group will look at what is working, and what barriers exist, for employers who want to provide preventative care on site for workers and their families. Most importantly, the group will work together to determine what changes are needed, and then implement those changes – whether the changes are needed within employers’ purchasing models, in state law, or elsewhere. It’s time for Wisconsin to stop spending more than everywhere else on healthcare – especially when studies are corroborating the long-held employer believe that the high costs do not equate better quality. n For more information, please contact Chris Reader at creader@wmc.org.
Overall Health Care Prices in US Metros Relative to National Median in 2016
Difference from national median -50%
50%
Milwaukee
Green Bay
most expensive
most expensive
29%
25%
4th
higher than national median
5th
higher than national median
For comparison, New York is 22% above the national median and Miami is only 6% above it. Meanwhile, Pittsburgh is 19% below the median and St. Louis is 14% below.
Health Care Policy | wisconsinbusinessvoice.org
Winter 2020 13
Justice Prosser Delivers Statesmanship Address
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isconsin Manufacturers & Commerce – at the urging of Board Chairman Jay L. Smith of Teel Plastics – joined with the Wisconsin Education Association Council (WEAC) in recent years to present the annual Statesmanship Reception. Sponsored by law firm Godfrey & Kahn, the Reception is meant to bridge political divides by bringing together individuals from both sides of the political spectrum. Each year, a “statesman” addresses the group to give his or her view of what it means. In 2018, former Ambassador and Democrat Speaker of the Assembly Tom Loftus delivered remarks. This past December, former state Supreme Court Justice and Republican Speaker of the Assembly David Prosser spoke. Justice Prosser’s remarks are below: As first, I thought that our hosts might consider me as a statesman, but then I began looking up some definitions of statesmen and statesmanship. The most famous definition of a statesman comes from a 19th Century Speaker of the House of Representatives Thomas Reed. He said, “A statesman is a politician who is dead.” I like to think I am still alive. Another quotation was uttered by the prominent anti-slavery reformer Wendell Phillips. Phillips said, “You can always get the truth from any American statesman after he has turned seventy,
14 Winter 2020
or given up all hope for the Presidency.” That doesn’t apply to me either. I never said I’ve given up all hope for the Presidency. I am younger than Bernie Sanders. Dean Acheson, Harry Truman’s Secretary of State, declared that “The first requirement of a statesman is being dull.” Now that may be the reason I was invited. We are living in turbulent times. The country is deeply divided over politics and political ideology, as well as race, religion, gender, sexual-orientation and even the different generations. The constant fighting among Americans has seriously diminished the respect and admiration the United States has traditionally enjoyed around the world, and it has paralyzed our ability to address and ameliorate critical problems at home. Many Americans believe our governments are dysfunctional. That is why the idea for the annual Statesmanship Receptions is so constructive. The receptions should be expanded, become better known and serve as a model for communities throughout Wisconsin and other states. My role tonight is to share some observations and ideas on how to rehabilitate our political system through the statesmanship of public officials and other means. Most of my thoughts are drawn from my experience. I grew up in Appleton and was fascinated by politics at an early age. To illustrate, I was introduced to U.S. Sen. Joe McCarthy at a political rally when I
wisconsinbusinessvoice.org | Statesmanship Reception
was nine years old. Several years later I asked Sen. McCarthy to sign a birthday card for my mother. He did. In 1957 I watched dignitaries gather for his funeral. Over time, however, the lesson I learned from Sen. McCarthy was this: Don’t embarrass yourself by making factual allegations that you can’t substantiate. Don’t make arguments that won’t stand up to scrutiny. A political figure should be especially careful in condemning other people, because these people can be seriously hurt by false accusations, and ultimately the accuser’s accusations may backfire. Being from Appleton, I never wanted to be labeled as another Joe McCarthy. One of our problems today is that too many public officials and citizens feel free to make sensational accusations against political rivals that are grossly exaggerated or simply false. They are almost never held to account. Our society cannot survive for long if no one feels a need to tell the truth. Our governments can’t be expected to work if cooperation is dependent on public officials who are openly trying to destroy each other’s reputations with false or misleading information. We must urge our officials to tone down their rhetoric and do better. Growing up, I had some wonderful teachers in public school who emphasized American ideals, and some very effective adult leaders in my church youth group. One of these leaders admonished me: “Don’t do things you would not want to read about in the
WMC President & CEO Kurt Bauer; WMC Board Chairman and Chairman & CEO of Teel Plastics Jay Smith; WEAC Board President and Eau Claire Teacher Ron Martin; and WEAC Executive Director Bob Baxter (left to right) together at the 2019 Wisconsin Statesmanship Reception.
newspaper because sooner or later everything comes out.” The fear that the disclosure of misconduct will not only hurt a public official but also his family and friends is usually a powerful incentive to follow the law. However, some people don’t think that through. They seem to believe that good behavior in public office is optional. They forget that a public office is a public trust. Perhaps a more effective argument these days is that the news media will print or broadcast enough bad stories about a public official on things the official did not do, that it is truly foolish for the official to give them real ammunition. In high school and college, I had pretty good grades but I had to work hard to get them. I quickly realized how many smart people I was competing against – many of whom were much smarter than I was. Consequently, I was savvy enough to recognize that I didn’t know everything and I might not always be right. Leaders in government should be very cautious about assuming that they are smarter than everybody else. They should always be willing to learn. They should seek out and listen to other people’s opinions – including the political opposition – incorporating good ideas
from any source into their thinking and identifying the weak points in their views. When I was a member of the Supreme Court, I always hired a law clerk who I thought was smarter than I was. I wanted a law clerk who I liked and could get along with but who was strong enough to tell me when she thought I was mistaken. Most of the time when I got pushback, my clerk was right. Public officials should never believe they are infallible or bigger than the institution they are part of. Often when I make this statement, the response is: “That’s easy for you to say.” It was. Having said that, however, leaders must lead, and majorities should normally prevail. Every public official should be willing to examine whether his or her adamant position against majority sentiment is sound or merely willful, political or self-serving. When I was in college, I encountered an essay by E.M. Forster in an English Literature class. It has stuck with me for decades. The essay was entitled “Tolerance.” I hope everyone will pick up a copy of that essay before you leave. Forster wrote in part that “Tolerance is wanted…in the street, in the office, at the factory, and it is wanted above all between classes, races, and nations.
It’s dull. And yet it entails imagination. For you have all the time to be putting yourself in someone else’s place. Which is a desirable spiritual exercise.” Forster makes a compelling case for tolerance as an indispensable first step toward dialogue, cooperation and ultimately problem solving. In government, it is difficult to move beyond tolerance – or even get to tolerance – if cooperation is required from people you are constantly trying to discredit or destroy. Both as a legislator and a justice, I strongly disagreed with some of the positions of my colleagues. But, as a rule, I tried (not always successfully) to argue the pros and cons of issues, not of people. It is not easy to build a productive relationship with an adversary whose character, integrity, and intelligence you have repeatedly attacked. Most of these thoughts can be summed by suggesting that public officials would benefit from having a list or code of universal personal qualities to which they are expected to aspire. Such a code might borrow from the Boy Scout Law which reads that a Scout is: Trustworthy, Loyal, Helpful, Friendly, Courteous, Kind, Obedient, Cheerful, Thrifty, Brave, Clean and Reverent. Anyone who has seen my offices know that I have repeatedly flunked the CLEAN test. But my experience in public life tells me that the other personal qualities can be invaluable and produce remarkably good results. They inspire good results because they are likely to be reciprocated. No one is required to give up their principles by being helpful, friendly, courteous and kind. And, in my opinion, it will produce statesmen who can get things done. n The annual Statesmanship Reception was hosted at The Madison Club on Dec. 11, 2019 and had nearly 200 attendees. For more details about the event, contact WMC at 608.258.3400.
Statesmanship Reception | wisconsinbusinessvoice.org
Winter 2020 15
Left to Right: Tim Cleary, Executive Vice President; Jason Bollig, Executive Vice President; Dave Martin, President & CEO; BJ Galle, Vice President
Small Business Spotlight Company Profile Company Name: Ideal Builders Location: Madison, WI Founded: 2002 Website: idealbuilders.com CEO: Dave Martin Number of Employees: 70
Please give us some background on Ideal Builders and your role in the company: Ideal Builders is celebrating our 18th anniversary in 2020, as a partner with three others, my focus areas are aligned with the company’s focus areas – centered around our clients and teammates. Our capabilities as a commercial general contractor are vast – being nimble, flexible and fostering meaningful relationships with our clients, partners and employees gives us our competitive advantage. Building world-class buildings ahead of schedule and under budget are frankly table stakes and the minimum measure of value – those don’t ever compromise. What helps set us apart is the way we serve and create meaningful relationships and transparency.
What policies have had a positive impact on your company and the way you do business? Our business is connected to the health and vitality of the overall business climate and the health of the manufacturing sector in the region. The efforts of regional stakeholders in making Wisconsin a wonderful place to open and grow businesses has a
16 Winter 2020
wisconsinbusinessvoice.org | Small Business Spotlight
huge impact in our ability to grow and serve our manufacturing and general client base.
What policies or obstacles have proven to be a challenge for Ideal Builders? It’s no surprise that labor attraction and population factors can have a serious impact on finding people that view the construction industry the amazing career path that it is. From our own growth initiatives and especially within our critical trade partners, finding and attracting labor to construction is a critical issue. We are seeing a continued emphasis on our industry making concerted efforts to highlight the positive virtues of a career in construction.
What future goals do you have for Ideal Builders? We’ll continue our endeavor to be the best possible employer. We view this as an endless effort to attract and retain the best possible talent, while also giving back to the communities we serve in a meaningful way. Our clients are the central focus – and our opportunity to serve others is what fuels our purpose. n
Mark Your Calendar! Upcoming Small Business Committee Meetings: Wednesday, March 11, 2020 Wednesday, May 6, 2020 Wednesday, October 7, 2020 Wednesday, December 9, 2020 For more information on WMC’s Small Business Committee, contact Brittany Rockwell at brockwell@wmc.org or 608.258.3400.
Small Business Spotlight | wisconsinbusinessvoice.org
Winter 2020 17
Protecting Taxpayers in a Time of Divided Government By Cory Fish WMC General Counsel and Director of Tax, Transportation & Legal Affairs
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s the Wisconsin Legislature’s 2019-20 session winds down, the business community has a lot to be thankful for. After eight years of slowly reducing Wisconsin’s high tax burden, Wisconsin taxpayers are lucky to have a legislature that blocked over $1.2 billion in tax increases proposed by Gov. Tony Evers – mainly targeted at the business community – and provided some modest tax relief to lower income workers. However, despite divided government the pro-taxpayer majorities in the Legislature do not have to resign themselves to defending past pro-taxpayer reforms. The legislature has extraordinary powers to take bold action to protect taxpayers through their ability to propose constitutional amendments. The legislature should use this power to create a bulwark between taxpayers and the myriad of tax and spend special interests in Madison by enshrining taxpayer protections in the Wisconsin Constitution. Protecting taxpayers through constitutional amendments has been an increasingly popular tool for formerly high tax states solidifying gains they have made and low tax states making sure that decades of hard work cannot be undone by tax and spend special interests. For example, North Carolina – often ranked the best state in the nation for business – placed an individual income tax cap in their state constitution of seven percent after slashing their personal income tax rates. Other
18 Winter 2020
states without an income tax like Texas and Tennessee have created permanent bans in their constitution on ever levying income taxes. It is no surprise
Wisconsin should follow the lead of other states and cap our current income tax in our state constitution.
that this trend of capping tax rates continues to pick up steam. As our political climate gets more unstable and concerning trends like nationalized healthcare – and the high tax rates that will come to pay for it – become commonplace, taxpayers are looking
wisconsinbusinessvoice.org | Tax Policy
for certainty. This certainty can be provided through such a constitutional amendment. Wisconsin should follow the lead of these states and cap our current income tax in our state constitution. To be clear this proposal is to create a ceiling not a floor. Similar to North Carolina, the Legislature would still have the power to lower income tax rates, they simply could not hike taxes without returning to the voters for another constitutional amendment. Protecting taxpayers in this manner would show Wisconsin is still serious about creating a pro-growth environment. Detractors may argue that there are circumstances when Wisconsin should raise income taxes but they are misguided. The last decade has shown that even when the Legislature cuts taxes, revenues continue to grow. Building upon Wisconsin’s pro-growth environment and continuing to attract new businesses and workers will increase tax revenues without the need to hike taxes. Further, Wisconsin is still a high tax state. According to the Tax Foundation we have the fourth highest state and local income tax burden in the nation, are ranked 26th in business tax climate and have a higher individual income tax top rate than most of our regional neighbors (IL, MI, IN, OH, ND, SD, NE). Taxpayers need protection, not tax increases. Beyond capping the income tax, there are other actions the Legislature should consider as well. Wisconsin
still has one of the worst property tax burdens in the nation (fifth highest property tax on the national median value home). Despite this fact and that a Wisconsin Policy Forum recently revealed that Wisconsin residents could be facing the largest property tax increase in a decade, bill after bill continues to be introduced in the legislature to create new exemptions to Wisconsin’s property tax levy limit. The levy limit is the only thing that protects Wisconsinites from even higher property taxes. The legislature should propose a constitutional amendment inserting the levy limit in the state constitution. Wisconsinites deserve the security of knowing that our state will never return to the days of double-digit percentage property tax increases. Wisconsin could also follow Florida’s lead and pass a constitutional amend-
ment requiring two-thirds majorities when the legislature votes to increase
A Wisconsin Policy Forum recently revealed that Wisconsin residents could be facing the largest property tax increase in a decade.
taxes or fees. Florida residents overwhelmingly ratified the constitutional amendment with 65 percent of voters casting a vote in favor of protecting taxpayers from further tax hikes. A provision similar to Florida’s would ensure there is broad political consensus when making policy changes that will hit
taxpayers’ pocketbooks. While progress has undoubtedly been made, Wisconsinites still face a heavy tax burden. In this time of divided government the legislature may not be able to get sweeping tax reform signed into law, but they can take bold action and create constitutional safeguards to permanently defend Wisconsin taxpayers from tax hikes advocated for by tax and spend special interests. The certainty these reforms would create would send a signal to families looking to move to the state that our government is serious about protecting taxpayers’ pocketbooks and to companies looking to re-locate that Wisconsin is still open for business. n
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Tax Policy | wisconsinbusinessvoice.org
Winter 2020 19
Steve L oehr Incoming WMC Chairman
C
oming out of the University of Wisconsin-Stevens Point in 1972, Steve Loehr could have missed out on the success of what is now one of the most recognizable brands in Wisconsin. Graduating with a degree in political science and a minor in history, he almost took a job with the Social Security Administration. Instead, Loehr went back to his roots. Growing up, Loehr worked for his family-owned grocery business, and
20 Winter 2020
later managed a grocery store during his college years. After then owning a grocery store with his wife for a number of years, he went on to manage a National Tea Company grocery store in Chippewa Falls. While working there in the mid-80’s, Loehr was approached by an individual named Don Zeitlow – who was CEO of Gateway Foods at the time and was part-owner of what was then a small chain of convenience stores. Loehr agreed to join Zeitlow at
wisconsinbusinessvoice.org | Incoming WMC Chairman
Gateway Foods, a company that was ultimately purchased by a national retailer in 1990. Zeitlow left Gateway that same year to run his other company full time, and he asked Loehr to again join him. That company – Kwik Trip – had about 100 stores and roughly 1,500 co-workers. Loehr – now a Vice President of the La Crosse-based company – was elected to be Chairman of the Wisconsin Manufacturers & Commerce (WMC)
Board of Directors in January, a role he will have for the next two years. He hopes to bring the same leadership to WMC that has helped grow Kwik Trip to more than 700 stores with over 26,000 co-workers. The company has become a Wisconsin – and Midwest – staple not only for filling up your vehicle with gas, but as a go-to location for the necessary items in between major trips to the big-box grocery stores. If you ask Loehr why that is, he will tell you it is due to the company’s culture. In fact, the moment you leave a Kwik Trip, you know you are going to come back soon. That is the sentiment that is instilled by every Kwik Trip co-worker when they say “See you next time” as you finish paying for your bananas, Karuba coffee and maybe a couple Glazer donuts. “It starts with hiring good people,” Loehr said in an interview. “In society and business today, a lot of ordinary things are perceived as extraordinary because you just don’t see it anymore.”
“In society and business today, a lot of ordinary things are perceived as extraordinary because you just don’t see it anymore.” But, as Loehr points out, “why wouldn’t you have clean bathrooms?” and “why wouldn’t you want guests to come back to your store?” It is all about having a personal relationship with fellow co-workers and Kwik Trip guests, according to him. And it isn’t just in the store that Kwik Trip hopes to make a positive impression. The last line of Kwik Trip’s mission statement is “to make a difference in someone’s life today.” Loehr argues this is not just when co-workers are on the clock, but at all points during the day. Kwik Trip co-workers are encouraged to be involved in their local community and to be a positive force for good no
Incoming WMC Chairman | wisconsinbusinessvoice.org
Winter 2020 21
matter where they are. Kwik Trip itself strives to do the same thing. From investing in local communities around the Midwest to investing in its own co-workers. And the company’s significant growth has helped it do more of this across the board. Loehr recalled a story from a co-worker who has been with the company for nearly three decades, and she remembered in 1992 getting an annual bonus of a frozen turkey and a check for $47. In 2019, Kwik Trip gave its co-workers over $80 million in yearend bonuses thanks to its profit-sharing program. It is the success of Kwik Trip that allows it to make a difference for its co-workers and the communities it operates in. That is why Loehr and Kwik Trip got involved with WMC to begin with. They understand that being an advocate for business means being an advocate for Wisconsin as a whole. “WMC is the most effective organization that Kwik Trip belongs to,” said Loehr. He explains that the advocacy WMC does helps businesses succeed, which allows them to reinvest in their local communities. And he hopes WMC will continue to be a fierce advocate
22 Winter 2020
for business during his tenure as WMC Chairman. Loehr says WMC’s advocacy will not look to one political party or another to partner with, though. “If you are a Democrat and are supportive of business, we are going to support you. If you are a Republican and supportive of business, we are going to support you,” he explained. The key, Loehr adds, is that WMC continues its focus as being the number one advocate for business. This includes taking on Wisconsin’s biggest challenges like the workforce shortage, high health care costs and improving the state’s tax and regulatory environment. He believes this focus will improve Wisconsin’s economy, business climate and attract new members to WMC – which will increase its ability to work on behalf of the business community. Loehr took over the role as WMC Chairman from Jay Smith, who served from 2018 to 2020 and is Chairman & CEO of Teel Plastics in Baraboo. The WMC Board also elected Mike Nikolai, President, COO & CEO of Waupaca Foundry, as Vice Chairman at its January meeting. n
wisconsinbusinessvoice.org | Incoming WMC Chairman
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The New Fringe Benefit By Nick Novak WMC Vice President of Communications & Marketing
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usinesses have competed for talent since the first two firewood stands opened next to each other in the early days of the caveman. It is nothing new to industry, but what is new is how much companies have to compete with one another when attracting and retaining talent – and how much prospective employees have the ability to shop around when it comes to landing their next job. Wisconsin, like many other states, is feeling the effects of a persistent workforce shortage. Wisconsin Manufacturers & Commerce (WMC) President & CEO Kurt Bauer stated recently that “workforce is the defining economic
24 Winter 2020
issue” facing our state. That is true today, and it will be true far into the future. The reasons are twofold. First, Wisconsinites are not all trained for the jobs of the future – or really even the present. There is a skills gap that exists in many industries. On this front, the Badger State is well-equipped to tackle the problem. The state’s technical colleges and universities are fully capable of preparing individuals for many of these jobs, and there are plenty of apprenticeship and other training programs that can fill in the gaps. The bigger issue facing Wisconsin is from a demographics
wisconsinbusinessvoice.org | Cover Story
standpoint. Wisconsin does not have enough people. Not today. Not tomorrow. And not 10 years in the future. This past summer, the University of Wisconsin-Madison Applied Population Laboratory wrote in this magazine about this exact issue. According to their data, births are at their lowest rate since 1973 and deaths are increasing. Add the fact that Wisconsin was a net loser on migration for the last decade – losing about 12,000 people over 10 years – and it is hard to see any coming spike in population. In fact, based on the raw data, migration is the only way Wisconsin popula-
tion could see strong growth because we have 66,000 fewer people under the age of 18 living in the state than we did in 2007. So, what is a business to do when they are growing and need new workers? Simply put, they must be the best dish on the menu for prospective employees. And once they hire an employee, they need a plan to keep them. First and foremost, salary is still the top way to attract someone to a job. Survey after survey shows this is the case. Even millennials – who may claim differently to their friends – need a way to pay for the $18 avocado toast at Sunday brunch. Side note: I’m a millennial, and I have never actually had avocado toast. But, you get my point. According to a recent report from ManpowerGroup about millennials in the workforce, money is still the top priority for them when they are looking for a job. And it is important to talk about millennials, because workplace demographics are changing quickly. That same Manpower study – Millennial Careers: 2020 Vision – shows that millennials are the largest group in the global workforce at 35 percent. Gen Xers are about even with the former but are slipping, while 24 percent are in Generation Z and only six percent are Boomers. As millennials take over the workforce for the foreseeable future, what do they want in a career? First, I already mentioned money. We all have bills to pay. But, they also rank job security and time off as a close second and third when they are looking at a job. In the fourth and fifth spots are working with great people and flexibility in the workplace, respectively. Looking broadly at the workforce, a survey from CareerBuilder.com shows some employees can rank things like affordable benefits, job stability and company culture above salary when they are contemplating a job offer – or whether or not to leave a company for a new job. All of this is to say that employees no longer care just about the bottom line
dollars and cents. They care about the culture of their workplace. And, if your company can pay a certain salary, you can bet your competition will pay the same or more. So, now companies are required to broaden the benefits packages offered to employees. The packages in some cases can look wildly different than something a Gen Xer or Boomer would have asked for in the past. Culture may not have been a main concern decades ago, but times are a changing. It used to be that offering health benefits was seen as a perk of a job. Now, according to a MetLife report, 81 percent of employees see health care benefits as a must have. Luckily
Employees no longer care just about the bottom line dollars and cents. They care about the culture of their workplace.
in Wisconsin, this is the case with most employers. The most recent WMC Economic Survey of Wisconsin CEOs shows 91 percent of employers offer health care benefits to their employees. Because employers have to compete for employees now more than ever, there are new benefits being offered in compensation packages. Does this mean you need to put a ping pong table in your break room and adopt a new office dog as your unofficial mascot? Probably not, but it does mean human resource professionals need to consider everything is on the table when making an offer to a new employee – or when trying to retain a current one. Some benefits do seem a little outlandish. For example, Google’s office in Toronto has a miniature golf green setup on the roof of their building. Other companies around the nation are offering “fur-ternity leave” for employees when they adopt a new pet, while others like Samsung and Huffington
Post have “nap pods” for taking a quick break at the office. Other companies offer the ability for employees to take game breaks during the day. Adobe’s office in Utah has an indoor basketball court and a rock wall, according to Business Insider Magazine. So, maybe it is time to get that ping pong table after all. More main stream offerings, however, include things like offering employees stipends to travel and recharge; having fitness centers available at the office or providing memberships to a local gym; and allowing employees the opportunity to work from home. These work/ life balance offerings play heavy into company culture. In Wisconsin, companies are beginning to offer some of these benefits as they compete for talent. In the most recent WMC Economic Survey, CEOs were asked what they offered to employees to attract or retain them. Some of the options are feasible for all employers, while some may not be. But, it does show that the overall benefits packages being offered in the state are changing. According to the survey the top benefit offered to employees is the ability to have a flexible schedule. Sixty-two percent of Wisconsin employers are already offering this perk to employees. The second most popular offering at 53 percent is a flexible dress code. You might be surprised how excited employees get when they find out they can wear jeans to work. Rounding out the top five are things like staff social events, more time off and physical wellness programs. Some Wisconsin companies are also offering non-traditional compensation for employees. This could include giving away gift cards for excelling on a project or offering employees a subscription to Netflix or Amazon Prime. The survey also asked employers about work from home policies, which are becoming more and more popular around the country as technology allows individuals to work from almost
Cover Story | wisconsinbusinessvoice.org
Winter 2020 25
anywhere there is internet. When asked if they “currently allow employees to work from home if they are in a position that it would be feasible,” over half of Wisconsin businesses said yes. A small number offer it to all employees, while most provide it to employees on a case-by-case basis. Thirty-nine percent of respondents said they do not allow employees to work from home. The talent shortage is not just a Wisconsin issue. The business community to tackling the talent shortage around the world. According to Manpower’s 2018 Talent Shortage Survey – the latest data available – 45 percent of global employers are having trouble finding workers. That is a 12-year high. Their data shows the United States was just above the world average at 46 percent. According to WMC’s survey, 75 percent of Wisconsin companies are being impacted by the workforce shortage. The same Manpower report shows 54 percent of employers are providing additional training and development opportunities to grow talent from within. Other strategies to tackle the problem include recruiting from outside the traditional talent pool, exploring alternative work models like contracting or freelance, while many are offering higher salaries and offering flexible working arrangements. All of this data shows that companies must be on the forefront of talent recruitment if they want to get – and keep – the best and brightest. Yes, salary is important. Yes, a well-rounded benefits package is important. Yes, an office dog could increase morale in some places. But, more and more, benefits that improve company culture are becoming standard. The CareerBuilder.com survey I mentioned up top showed that 44 percent of employees think company culture can be more important than more money in some cases. Offering a work from home policy or having more flexibility on work schedules can help employees feel more welcomed – and most importantly, heard – at work.
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Wilson Jones, President & CEO of Oshkosh Corporation
Someone who knows this especially well is Wilson Jones, President & CEO of Oshkosh Corporation. Not only does Oshkosh manufacture one of the Coolest Things Made in Wisconsin – the Joint Light Tactical Vehicle used by the U.S. military – but it has also been
According to Manpower’s 2018 Talent Shortage Survey – the latest data available – 45 percent of global employers are having trouble finding workers. That is a 12-year high. named a Best Place to Work by Glassdoor, a World’s Most Admired Company by Fortune and a World’s Most Ethical Company. “With unemployment so low, team members have a lot of options with where they want to work,” Jones told me. “So, it’s important to have a great culture where team members have a clear purpose and can connect to their work, their team and understand how they connect to the bigger picture.” If employees are not engaged at work, have a boss who treats them poorly or don’t feel like they are really part of the team, it will likely take way
wisconsinbusinessvoice.org | Cover Story
more salary and benefits to keep them in a job that is miserable. That is why benefits packages now need to take culture into account. Giving a parent flexibility to pick their kid up from school early one day or ensuring they have the opportunity to get to all their soccer games can in many cases go further than a pay raise. On top of that, having employees who go home and are excited about the work they do will not only keep them coming back, it will encourage other people to seek out employment at that same company because they know they will be valued. A ping pong table is fun, but it may not make employees feel valued. “Having great amenities such as collaboration spaces, a fitness center and more are great, but amenities don’t matter if a company doesn’t have a positive culture, meaningful work and leadership that cares,” Jones added. “We continually check the pulse of our team members and gather feedback on what they need to be successful and what matters to them.” When you are looking to attract new talent, look first at your current employees. Discover what they value and how you can create a culture that fosters a commitment to their employment. Today, benefits packages are no longer just about money. Oshkosh has spent the last several years focusing on this, and it has made them an employer of choice. The bottom line benefits are a nice perk, too. By focusing on our team members and empowering them, we have delivered strong financial results, showing that you can win by focusing on your team and culture,” Jones concluded. n Want to hear more about how Oshkosh has built its reputation for being a top place to work, attend Business Day in Madison on Feb. 26 to hear Wilson Jones speak on workforce and a variety of other topics. Register at wmc.org.
As the competition for talent increases, which of the following are you offering employees to retain or attract them? 62% - Flexible Work Schedules 53% - Flexible Dress Code 44% - Staff Events/Programming (i.e. Staff Lunches, Planned Social Events, etc.) 41% - Flexible Time Off (i.e. Increased Vacation, Maternity/ Paternity Leave, etc.) 41% - Physical Wellness Programs (i.e. Gym Memberships, Nutritional Coaching, etc.)
Global Workforce by Generation in 2020
Do you currently allow employees to work from home if they are in a position that it would be feasible?
Top Five Priorities for Millennials When Looking for a Job
Great People (80%)
6% 24%
39% - Non-Traditional Compensation (i.e. Gift Cards, Event Tickets, Subscriptions, etc.) 38% - Structured Mentoring or Cross-Training 23% - Mental Health Programs (i.e. On-Site Counseling, Subsidized programming, etc.) 13% - Free/Subsidized Meals 11% - Extra Time Off for Volunteering 1% - On-Site or Subsidized Day Care
Money (92%)
Yes 56% 35%
Holidays/Time Off (86%)
No 39% Flexible Working (79%) Security (87%)
35%
According to a CareerBuilder.com Survey, some prospective employees rank other factors as more important than salary:
Millenial
56% - Location
55% - Affordable Benefits
55% - Job Stability
Generation Z Generation X Boomer 48% - A Good Boss
44% - Company Culture
Cover Story | wisconsinbusinessvoice.org
Winter 2020 27
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“Statesman Smith” Saw Success as Board Chair
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t’s not easy to become the WMC Board Chair because it isn’t easy to be the WMC Board Chair. But two years ago, Jay L. Smith, Chairman and CEO of Teel Plastics, Inc. in Baraboo, accepted the nomination and the challenge of leading the state’s leading business association. Smith laid out an ambitious platform for his chairmanship that centered around statesmanship. Recognizing that our body politic had become increasingly toxic and polarized, Smith wanted WMC to do something about it. That led to the creation of the Wisconsin Statesmanship Reception, which is now held the evening before the Future Wisconsin Summit. WMC co-presents the event with the Wisconsin Education Association Council (WEAC), which has been an historic adversary of WMC’s policy agenda, and vice versa. But, in the spirit of statesmanship, the two titans of Wisconsin politics have agreed to come together with their respective allies on both sides of the political spectrum once per year to show that we can disagree about policy without being disagreeable personally. The law firm of Godfrey & Kahn hosts the event. This most recent event (see page 14), held late last year, attracted at least 170 attendees. Tony Evers attended the Statesmanship Reception in 2018 shortly after his election as governor. Smith also invited the governor to speak at the WMC Board meeting in April 2019, which Evers accepted. During an exchange, Smith offered to work with Evers and his Administration on areas of overlap-
ping concern, like workforce. Smith also wanted to promote free enterprise during a time that national and statewide polls show more young people are attracted to socialism. During Smith’s tenure as chair, WMC’s Business World program, which teaches high school students on economic literacy and how to run business, saw record growth in terms of students reached via the Business World summer programs and the one-day “mini” sessions held around the state during the academic year. WMC is a membership organization and another goal Smith had was to expand the number of Wisconsin businesses willing to join the 109-year
old organization. Chalk up another success, because WMC achieved or surpassed its new member goals in 2018 and 2019. WMC also saw strong non-dues revenue growth during the same time-period, largely from the Wisconsin Safety Council and WMC Insurance. Overall, WMC is a stronger organization today because of Jay’s high expectations and leadership. “Being asked by the state’s top business leaders to serve as chair of the most influential business advocate in the state is a high honor and a big responsibility,” Smith said in a recent interview. “I took that responsibility seriously and worked with the fine WMC staff to address the most critical issues facing all businesses of all sizes and from every sector, including workforce, high medical costs, and growing attraction of socialism. I am proud of what I was able to accomplish, with the help of a very dedicated WMC Board of Directors, and, of course, the WMC staff.” n
WMC Chairman | wisconsinbusinessvoice.org
Winter 2020 29
In Case You Missed It... Check out the highlights from WMC Foundation’s Future Wisconsin Summit.
Attendees connect before the kickoff of the Future Wisconsin Summit.
WMC Foundation Executive Director delivering remarks about the challenges facing rural Wisconsin.
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John Deere Horicon Works Factory Manager and Future Wisconsin Project Steering Committee Chairman Steve Johnson discussing the difficulties farmers are having in rural Wisconsin.
wisconsinbusinessvoice.org | Future Wisconsin Summit
Pastor Jerome Smith leads a panel discussion about criminal justice reform and reintegrating justice-involved individuals into the workforce.
Project Lead the Way President & CEO Vince Bertram speaks about the importance of STEM education in Wisconsin and around the country.
Wisconsin Economic Development Corporation (WEDC) Secretary & CEO Missy Hughes highlights business success stories from around the state.
Rural executives from Waupaca Foundry, VARC, Inc. and Sargento discuss economic challenges facing small communities.
WMC Executive Vice President of Government Relations Scott Manley introducing a panel of agriculture experts to discuss the key industry in Wisconsin.
Future Wisconsin Summit | wisconsinbusinessvoice.org
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W M C C E O E C O N O M I C S U RV E Y
Workforce, Tariffs are Biggest Challenges T he statewide workforce shortage continues to be the biggest challenge for business headed into 2020, and the issue is forcing employers to become creative to attract and retain the best talent. With three-quarters of private sector employers reporting difficulty finding workers, more are allowing flexible work schedules, relaxed dress codes, additional vacation and leave time, and the ability to work from home, according to a recent survey conducted by Wisconsin Manufacturers & Commerce (WMC) – the state chamber of commerce. Other talent attraction and retention efforts mentioned in the survey include employee wellness programs, gym memberships and nutritional coaching, as well as more fun activities like themed lunches and rewards and recognitions like gift cards, events tickets or subscriptions. “I am not surprised to see companies adopting these types of tactics,” said Kurt Bauer, WMC President & CEO. “As an employer in a city with a very low unemployment rate, WMC has em-
braced many of the same things.” Bauer noted that the latest WMC semi-annual survey of Wisconsin CEOs is the 10th in row – dating back to Summer 2015 – to show at least 65 percent of employers having challenges finding the workers they need. “Workforce is the defining economic issue in Wisconsin and will be until we figure out a way to attract the workers employees need as Baby boomers continue to reach retirement age,” added Bauer. Wages are also on the rise, according to the survey. A year ago, 38 percent of respondents said they planned to raise wages between 3.0 and 3.5 percent. Today, it is 45 percent. But, that wage gain may be offset to some degree by rising health care costs. Seventy-seven percent of business leaders said their health care costs have increased from 2019 to 2020. When asked how they are managing the rising cost, 66 percent said they were forced to increase employee contributions, and 19 percent said they had to reduce benefits. Indeed, health care costs were again
the second biggest public policy issue facing Wisconsin. Workforce is number one, and high taxes and excessive regulation were three and four, respectively. Tariffs and overall trade issues continue to be top of mind among business leaders, too. Just over 50 percent say tariffs are hurting their business, up from 47 percent six months ago. However, similar to the last survey, 79 percent support tariffs as a negotiating tactic to force nations like China to play fair. Optimism in the economy remained steady among business leaders in this survey from six months ago with respondents rating the state and U.S. economies very similarly. Fifty-nine percent said the Wisconsin economy was “strong” or “very strong,” while 65 percent give the U.S. economy the same rating. Over 90 percent of business leaders said they were profitable during the preceding six months and 91.6 predict they will be profitable through the midpoint of 2020. Both percentages are up slightly from a year ago. n
Other Key Findings: • 64% of businesses support legislation to reduce medical costs in workers’ compensation by implementing a medical fee schedule • 66% of businesses plan to increase employee contributions in 2020 to compensate for rising health care costs, while 19% suggest they may be forced to decrease benefits
32 Winter 2020
• 69% of employers support the Wisconsin Economic Development Corporation (WEDC) spending $5 million per year on a targeted talent attraction campaign to encourage workers from other states to move to Wisconsin for available jobs here
wisconsinbusinessvoice.org | WMC CEO Economic Survey
W M C C E O E C O N O M I C S U RV E Y
77%
said their health care costs have increased from 2019 to 2020
75%
of employers have challenges ďŹ nding the workers they need
69%
support the WEDC’s talent attraction campaign
WMC CEO Economic Survey | wisconsinbusinessvoice.org
Winter 2020 33
Winter Safety Tips By Marie Hull Safety Manager, Wisconsin Safety Council
T
he winter season, especially in Wisconsin, can be a hazardous time of year for both businesses and their employees. Winter weather hazards can be mitigated with the right planning and alertness on all levels of the organization. While business leaders and safety processionals can’t control the weather, they can help control the risks that their employees face. Injuries that happen in this season are not just limited to outdoor workers. Simply walking into or out of work or occasionally performing tasks like shoveling sidewalks or spreading salt at an entry can quickly become hazardous. Companies should reinforce their safety practices and involve their employees when attempting to identify hazards. Once identified, the organizations can brainstorm how to mitigate the unique winter hazards that can be encountered in the workplace.
Slips, Trips and Falls When it comes to determining the most common winter hazards, companies and employees tend to focus on mitigating slips, trips and falls. This is an obvious place to start because of slipperiness of snow and ice create a more hazardous environment that increases the risk of injury. Encourage employees to wear footwear with good traction even if that means changing into a different pair once they are in the building. Also, by walking slower and taking small steps they can better react if they suddenly step on a slippery spot. Companies should make a
34 Winter 2020
concerted effort to keep walkways and parking lots free of snow and ice buildup to ensure safe pathways for both employees and visitors.
Driving in Winter Weather Whether employees drive for their job or they are commuting to and from work, employers can promote safe driving habits. Encourage employees to clear their car of snow and ice, including their lights, hood and tires. Practicing safe winter driving strategies like checking that vehicle tires are properly inflated, accelerating and decelerating slowly, and giving other vehicles on the road extra space. It is also good for all drivers to know what to do if their vehicle breaks down. Having a winter weather emergency kit (that includes traction aids like sand or cat litter, blankets, hand/foot warmer, and tow chains, etc.) can keep drivers and passengers safe during cold weather until help arrives.
Frostbite and Hypothermia Being outside in the winter, whether for work or play, can be dangerous if you and your employees aren’t mindful of the risks of cold temperatures. Prolonged exposure to low temperatures, moisture and/or wind can put you at risk for frostbite and hypothermia. Frostbite is the most common injury caused by exposure to cold temperatures. Frostbite can even affect skin that is protected by clothing. Hypothermia occurs when the body loses heat faster than it can produce heat which
wisconsinbusinessvoice.org | Wisconsin Safety Council
causes the body temperature to drop to a dangerous level. Before going outside in the winter, it is important to check the temperature and limit employees’ time outdoors if it is exceptionally cold, wet or windy. If is suspected that someone is suffering from either of these cold weather conditions, seek medical attention immediately.
Office Space Heaters Office buildings can be notoriously cold in the winter months which can lead to employees bringing in portable space heaters. These types of heaters are a fire hazard if they are not used correctly. Ensure that the heaters are not placed near cabinets, tables, curtains or other materials that can catch fire. When they are not in use, they should be unplugged.
Other Cold Weather Work Hazards While the previously listed hazards can be primary focuses in the workplace, it is important to note if there are any hazards that may be specific to the company or in specific work areas. Some examples of other winter weather hazards can be: using powered snow removal machines and working from heights on potentially icy surfaces. Winter weather can be unpredictable and can put stress on the company and employees because of the hazards it creates. Having a proactive approach to mitigating and eliminating those hazards shows that safety is a priority on all levels of the organization. n
Register at wisafetycouncil.org
2020 Wisconsin Safety Council 78th Annual Conference April 19-22, 2020 Kalahari Resort & Conference Center
Featured Keynotes: Captain Mike Abrashoff Captain USS Benfold
Ted Abernathy
Managing Partner Economic Leadership
Thank You to Our 2019 WMC Foundation Donors By Wade Goodsell WMC Foundation Executive Director It was another impactful year for WMC Foundation, and I really mean that. Michelle Grajkowski – our Business World Director – has a sign in her office where she quotes one of the many things I have blurted out in my time as head of our Foundation. The sign reads “Success is in impact, not perfection.” It sounds like something I would say, and I do believe it. We all know that nothing is perfect, but we strive every day to make a meaningful impact through the work of WMC Foundation. In our Business World program, that means helping young students find out what careers they might want in the future. It means they walk away from our summer camps knowing that free markets, free enterprise and capitalism have helped pull more people out of poverty than any other economic system before it. And at our one-day Business World Mini programs – a new record set this year – it is having that
Foundation
36 Winter 2020
wisconsinbusinessvoice.org | WMC Foundation
student come up to us and saying they now know business is a force for good. Over to the Future Wisconsin Project, the impact is no less obvious. No matter where you go in Wisconsin, the economic topic of the day is workforce. The donations and involvement from the companies listed below made that happen. It is why we have a talent attraction campaign. It is why more funding is going toward apprenticeships and other training programs. And it is why we are openly talking about how to train inmates so they are career-ready when they leave the justice system. I am proud of the impact we have had, and I am so thankful to our generous donors who have made all of it possible. We have big plans for 2020, and I hope this list only continues to grow. So, for all you have done to impact Wisconsin for the better, thank you. n
WMC Foundation Executive Director Wade Goodsell speaking at the Future Wisconsin Summit.
Associated Bank
Georgia-Pacific
Automation Components Inc.
Godfrey & Kahn
Baker Tilly Virchow Krause, LLP
Greenheck Fan Corporation
Students at the Business World Summer Program held at UW-Madison.
Mortgage Guaranty Insurance Corporation Mr. Chesley P. Erwin Jr. Mr. John N. Dykema
The Phelps Hamus Group at Morgan Stanley Trappers Turn Golf Club Trico Corporation
Barton Solvents, Inc.
Hausmann-Johnson Insurance
National Association of Manufacturers
C. G. Bretting Manufacturing Co., Inc.
Hendricks Commercial Properties LLC
NOG, Inc.
UBS The Burish Group
North Shore Bank, F.S.B.
ULINE
C. G. Schmidt, Inc.
Heritage - Crystal Clean
United Healthcare of WI
Cash Depot
Husch Blackwell
Packaging Corporation of America
Century Fence Company
Ideal Builders, Inc.
Power Test, Inc.
Church Mutual Insurance Company
J. J. Keller & Associates, Inc.
Poynette Chamber of Commerce
CLA
J. P. Cullen & Sons, Inc.
Quarles & Brady LLP
Clasen Quality Chocolate
John Oster Family Foundation
Robert W. Baird & Co., Inc.
JPC Foundation
Roehl Transport, Inc.
Krause Family Foundation, Inc.
RSM US LLP
CliftonLarsonAllen Colony Brands Inc. Constellation Energy Dairyland Power Cooperative E. K. Machine Co. Inc. Elmbrook Rotary Foundation EVCO Plastics Fearings Audio Video Security FEECO International, Inc. Flexion, Inc. Gener8tor
Lee & Associates of Illinois, LLC Link Family Foundation M3 Insurance Manpower Inc. Mercury Marine Michael Best Middleton Chamber of Commerce Milk Source LLC
S. C. Johnson & Son, Inc. Seats Incorporated Skyward, Inc. State Farm Insurance Suttner Accounting, Inc. Ted & Grace Bachhuber Foundation
Twin Disc, Incorporated
VelocityEHS von Briesen & Roper, s.c. Waukesha County Technical College We Energies Foundation Wegner CPAs Weldall Mfg., Inc. WGU Missouri Wisconsin Association of Campground Owners Wisconsin Center for Manufacturing & Productivity Inc. Wisconsin Public Service Foundation, Inc. Zero Zone, Inc.
The C. A. Lawton Co. The George Kress Foundation Inc.
WMC Foundation | wisconsinbusinessvoice.org
Winter 2020 37
Upcoming Events (2019-20 school year) Merrill Green Bay Fennimore Rhinelander Rice Lake Whitewater West Allis Watertown Oregon La Crosse Muskego Milwaukee Tomahawk Livingston Medford Horicon Waukesha
Oshkosh Madison Mauston Oconto Elkhorn Plymouth Fond du Lac Superior Racine Monroe Beloit Stevens Point Sun Prairie Westfield Minong New London De Pere
Summer Programs: St. Norbert – June 14-17 UW Madison – June 21-24
For more information or to schedule a Mini Business World in your area, contact Michelle Grajkowski at 608.661.6904 or mgrajkowski@wmc.org.
The Wisconsin Business World Program is the flagship program of the WMC Foundation. Founded in 1982, more than 20,000 future business leaders have participated in our programming. For more information, please contact Michelle Grajkowski, Business World Manager, at (608) 661-6904, or Winter 2020 wisconsinbusinessvoice.org | 38 mgrajkowski@wmc.org.
Business is a Force for Good By Michelle Grajkowski Wisconsin Business World Director Impact (noun): the force of impression of one thing to another: a significant or major effect Impact. Such a small little word with such an enormous meaning. The Wisconsin Business World team strives to make an impact in everything we do, through our hands-on programming, community outreach and industry partnerships. The 2018-19 school year was an exciting time of growth for our programs. Through our two Business World Summer Camps and 23 one day programs, we reached approximately 2,600 students from more than a hundred Wisconsin communities. But even more important than the hard numbers is the true impact that our students feel when they leave our programs. One parent told me the summer program changed his son’s life, sharing that his son said he “learned more in three days than he learned in high school.” Another parent shared that her son changed from the medical academy to business after attending our camp. And yet another said that the summer program changed her daughter’s trajectory. That the year before she was barely passing school, and she signed her up to help put her back on the right path. Happily she is earning all A’s and B’s this semester. Stories like these are what motivate our team – knowing that we are making a positive difference by allowing our students to be creative, by helping
them explore career opportunities and by challenging them to learn to work together for a common goal. Innovate (noun): a new idea, method or device Innovate. We start every Business World program with the concept of innovation. If businesses are not constantly evolving and changing, they will die. Sweet and simple. The same concept applies to our Business World programs. Business World was founded in 1982 by a group of our members who wanted to enhance business education in our schools. Today’s mission is the same. But, let’s flashback to 1982, the age of the Atari. Video games have certainly changed since then (I seriously thought my son was watching a Packer game when he was playing Madden with his friends!), and so has our youth. Today, students fill their summers with jobs, volunteer work, sports, family and friends. It’s becoming more challenging to find students willing to give up a week of their summer for a
business camp. But, that’s where our one day programs come in. This year we are on pace to present 35 impactful one day programs. Additionally, as a member driven organization, we understand the workforce challenges you are facing. As a result, we strive to be a bridge between the schools in your area and your business. We perform many of our programs right on member sites and often incorporate tours, offering students a chance to explore a new career opportunity. Finally, our strong partnerships with core groups such as FBLA, DECA and Junior Achievement as well as community organizations such as Boys and Girls Clubs and Running Rebels are allowing us to grow and reach students outside of the classroom. Gratitude: to give thanks Gratitude. As I reflect on the wonderful year behind us and think about all the exciting things in store for the Business World Programs as we launch into our new decade, I wanted to take a minute to thank our donors who have made all this growth possible. Without your donations, we would not be able to impact and innovate and inspire. Our program depends on your support, and we want you to know you truly are living up to our core message, that Business is a Force for Good. n
Business World | wisconsinbusinessvoice.org
Winter 2020 39
Gateway Tech Expands Manufacturing Center
G
ateway Technical College at the end of October celebrated the expansion of its SC Johnson iMET Center in Sturtevant, a center that’s been called a national model for Industry 4.0 training and a place where today’s manufacturers can find workers with the skills to help their businesses grow. The center, located at 2320 Renaissance Blvd., Sturtevant, expanded by 35,800 square feet and 12,080 square feet of existing space was remodeled as part of the project. The center is home to 12 academic programs taught with some of the most technologically advanced classrooms and equipment in advanced manufacturing and Industry 4.0 today. Many national companies stepped forward to provide resources, equipment and industry knowledge to help make the center a local – and national – site of Industry 4.0 training. “Gateway has partnered with industry leaders Fanuc, Rockwell and Amatrol to design and build a computer-integrated manufacturing training center for advanced manufacturing,” says Gateway Technical College President & CEO Bryan Albrecht. “Smart manufacturing and artificial intelligence systems drive data analytics to create digital manufacturing technicians needed for today’s manufacturing ecosystem. “Gateway has demonstrated the future of advanced manufacturing training with automation, robotics and mechatronics training labs supporting industry 4.0 standards.”
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Some of the expanded and new labs focus on providing skills in industrial controls, precision measuring, mechatronics, advanced manufacturing and connected systems as well as an expansive robotics area. Data analytics training has been embedded across many academic programs at the center, providing students the skills to collect, analyze and make decisions from that data – skills that current and future technicians will need to possess. The center also provides training to more than just Gateway students. Current workers have already begun to take classes to upskill, and the college can also take its training on the road to help businesses upskill their current workforce through portable training equipment and instructors who will travel to teach on-site at area businesses. “Gateway’s expansion of the SC Johnson iMET Center creates a hub where businesses and the community can engage in conversations about advanced manufacturing, automation, big data and the related economic opportunities for Southeastern Wisconsin,”
wisconsinbusinessvoice.org | Education Voice
says Matt Janisin, Gateway Technical College vice president, Business and Workforce Solutions. “Businesses benefit from an expanded future pipeline of skilled talent as well as the opportunity to send existing employees to the center for updated training as technology continues to change the manufacturing landscape. It benefits business and students by providing a unique curriculum with a focus on data analytics and understanding predictive maintenance in today’s highly automated manufacturing systems.” The site includes an expanded Fab Lab, an area where students, entrepreneurs and community members can access 3D design software and a number of printing, milling and other machinery to build nearly any item that users can imagine and design. One final component of the space is the Connected Systems Institute room, which provides a space for manufacturers, educational institutions and the public to gather in a collaborative area to discuss advanced manufacturing and iIOT topics. n
Wisconsin Business Voice is starting a new feature called Wisconsin Business News. The goal of this section is to provide quick updates on things happening throughout the business community in our state. It could be about a promotion, a merger, the creation of new jobs or the impact a company has in their community. And all of it will be Wisconsin focused. While we will work to find stories that should be featured in this section, we would welcome ideas from you, our readers. Throughout the year, if you have a news release or know about something that should be printed in this section, don’t hesitate to send it our way – chances are it might get published in our digital newsletter, WMC Morning Digest, too. More details are at the end of this section.
S S E N I BU S S W NE Exact Sciences CEO Named In Business Madison Person of the Year In Business Madison – a local business publication based in the state’s Capitol – named Kevin Conroy, Chairman & CEO of Exact Sciences, as its inaugural Person of the Year in December 2019. Conroy leads the company that has developed a flagship product, Cologuard, which has been used to screen nearly three million people for colon cancer since it received FDA approval. According to In Business, “in 2019, Conroy and his fast-growing molecular diagnostics company continued their cancer-fighting march with a number of organizational milestones that have positioned it to conquer different types of cancer. Simply put, Conroy leads a local company that’s on an impressive roll with an increasingly robust financial performance and sparkling new facilities that include a new headquarters it will occupy early next year.” Conroy was named the Person of the Year for applying business sense to the fight against cancer and elevating Wisconsin’s status as a health-tech leader.
Dairyland Power Cooperative CEO and WMC Board Secretary Barbara Nick Announces Retirement Barbara Nick, President and CEO of Dairyland Power Cooperative, has announced plans to retire in July 2020. Nick joined Dairyland as President and CEO in December 2014, after serving in leadership roles at Wisconsin Public Service Corporation/Integrys (now WEC Energy Group). Under Nick’s leadership, Dairyland has successfully focused on resource diversification, sustainability and leadership development. Dairyland’s solar investment doubled the solar generation in
Wisconsin during 2016. An engaged community member, Nick has over 30 years of board service on various profit and non-profit boards. She is serving a six-year term to the State of Wisconsin Investment Board (SWIB), which includes oversight of state funds valued at over $100 billion. In addition, Nick is Secretary on the Wisconsin Manufacturers and Commerce (WMC) board, an Independent Advisory Director for Mead & Hunt and a Trustee for Viterbo University (La Crosse). She is also on the Board of Directors for the Electric Power Research Institute (EPRI), and a member of the EPRI Governance and Nominating Committee. She previously served for over seven years as a director of Seventhwave.
John Deere to Expand its Horicon Campus John Deere Horicon Works – a Wisconsin plant of the Moline, Illinois-based Deere & Company – plans to invest $24 million to add a 22,000 square foot building to its campus. In addition to the new building, John Deere plans to upgrade equipment and add at least 12 new jobs. The company will receive up to $250,000 in state income tax credits over a three-year period for the expansion. “John Deere’s investment solidifies the company’s continued commitment to our state and is a testament to the strength of our manufacturing industry,” Missy Hughes, secretary and CEO of WEDC, said in a press release. “WEDC is proud to make this project viable for John Deere Horicon Works, and I look forward to seeing their continued success in Wisconsin.”
Wisconsin Business News | wisconsinbusinessvoice.org
Winter 2020 41
Wisconsin Manufacturer of the Year Nominees Announced Twenty-five Wisconsin manufacturers have been nominated for the 32nd Annual Wisconsin Manufacturer of the Year (MOTY) Awards. The MOTY program recognizes the state’s top manufacturers of all industries and sizes for their commitment to good business practices, innovative processes, and productivity enhancements to help drive Wisconsin’s economy. The 32nd Annual Manufacturer of the Year Award Nominees are: Artemax, Inc. – New Berlin Automation Components, Inc. – Middleton Chapter 2, Inc. – Lake Mills Empire Screen Printing, Inc. – Onalaska Felss Rotaform LLC – New Berlin First Choice Ingredients, Inc. – Germantown Fox Valley Wood Products, Inc. – Kaukauna Gamber-Johnson LLC – Stevens Point Generac Holdings Inc. – Waukesha Greenheck Group – Schofield HED, Inc. (Hydro Electronic Devices, Inc.) – Hartford Lemke Industrial Machine LLC – Marathon City MBK-WI, Inc. d/b/a Freedom – Milton MCL Industries, Inc. – Pulaski Metal-Era Inc. – Waukesha Nueske’s Applewood Smoked Meats – Wittenberg Octopi Brewing – Waunakee Orion Energy Systems, Inc. – Manitowoc Outlook Group – Neenah Poblocki Sign Company LLC – Milwaukee Power Test Inc. – Sussex Professional Plating – Brillion Sargento Foods – Plymouth Stoughton Trailers LLC – Stoughton XeteX, Inc. – La Crosse. Winners will be announced at The Pfister Hotel in Milwaukee on February 20.
Law Firm von Briesen & Roper Selects Susan Lovern as President & CEO The law firm of von Briesen & Roper, s.c. elected Susan Lovern as President & Chief Executive Officer in January. Lovern is the firm’s first woman President & CEO. Lovern, who chairs the firm’s Commercial and Business Litigation Section, began her legal career at von Briesen 25 years ago as a summer associate. She has served on the firm’s Board of Directors since 2011 and chaired the firm’s Recruiting Committee from 2002-2011. Lovern has served numerous leadership roles in the legal community, including president of the Association for Wom-
42 Winter 2020
en Lawyers and two elected terms on the Milwaukee Bar Association Board of Directors. Wisconsin Super Lawyers® named her one of Wisconsin’s Top 50 Lawyers in 2019 and she has been repeatedly selected as one of Wisconsin’s Top 25 Women Lawyers. Lovern succeeds John Rocco, who served as interim President and CEO. Rocco will resume his previous role as Vice President of the firm, while retaining the responsibilities of a managing shareholder.
Amazon to Build One Million Square Foot Distribution Center in Beloit Amazon confirmed in January it would complete a new distribution center in Beloit in time for the 2020 holiday shopping season. The new location is expected to create 500 new jobs and will be located in the Gateway Business Park. Work on the facility started in October 2019. According to the Beloit Daily News, “the Wisconsin Economic Development Corporation (WEDC) approved $7.5 million in state tax credits for Amazon, with the subsidies able to be used on future projects which could include the new Beloit location. The actual amount Amazon receives from the state hinges on the number of jobs created and capital investment undertaken through 2024, according to WEDC.” New employees of the Beloit facility will have a $15 minimum wage and be offered health insurance and 401k benefits, in addition to 20 weeks of paid parental leave.
M3 Insurance Names Brad Reitzner Vice President of Sales – Property & Casualty Madison-based M3 Insurance announced the promotion of Brad Reitzner in January to Vice President of Sales for its Property & Casualty line of business. In his new role, Reitzner will be responsible for the overall direction, growth and development of M3’s property & casualty product line, practice groups and specializations, including account executive development and support, new business development and M3’s business insurance captive practice. He joined M3 in October 2013 as an account executive, and soon expanded his role to include directing both the manufacturing & distribution and P&C captives practice groups. Prior to M3, Reitzner was a producer at TRICOR Insurance.
Husco to Launch Full-Time Student Hiring Program Waukesha-based Husco International Inc. is looking to hire students full-time as they enter school and pay for them to complete their degrees through a new program call Husco Scholars. Students will take classes online for engineering at the University of Wisconsin – Platteville while also working at least 32 hours per week at Husco. The students would also complete labs at Fox Valley Technical College on several Saturdays each semester. Husco CEO Austin Ramirez says he expects that some
wisconsinbusinessvoice.org | Wisconsin Business News
students may start with a plan to earn a bachelor’s degree but opt instead to complete just an associates after a couple years in the program, opening up opportunities within the company’s technician roles. “That’s probably, at least for us, the single tightest part of the labor market. Those folks are impossible to find,” Ramirez said. “So we’re going to be rooting for all of these kids to finish their bachelor’s degree, but I have a hunch that some of them will decide that finishing a two-year associate degree and being able to make $60,000-$80,000 a year might be a better fit for what they want.” The Husco Scholars program will launch in the 2020-’21 school year, and students will be required to stay at Husco at least three years after completing their degree.
Ashley for the Arts Announces Headliner for 2020 Event Lynyrd Skynyrd was announced in January as a headliner at the annual Ashley for the Arts event in August. Started by Ashley Furniture Industries, Inc. in 2009, Ashley for the Arts is a multi-day festival at Memorial Park in Arcadia – home of the Wisconsin furniture manufacturer. The event not only brings attention to the town that Ashley Furniture is headquartered in, it also raises hundreds of thousands of dollars for local charities. In the past, musical guests have included Lady Antebellum, Morgan Evans, 3 Doors Down and Billy Ray Cyrus, among others. According to its website, the event “provides the entire family with world class entertainment, art, exercise and family fun for a remarkably low cost.” Tickets are sold for just $15 each. Additionally, the program raised $590,000 for over 60 non-profits in 2019 alone. Ashley for the Arts will take place Aug. 6-8 and more headliners will be announced soon.
The Boldt Company Hires a New Executive Vice President Ben Bruns has joined The Boldt Company as executive vice president for its Northern Operations group. In this position, Bruns will lead business development and operations for Boldt’s Wisconsin offices in Green Bay, Appleton, and Stevens Point. Bruns brings nearly two decades of experience in business development, jobsite project management, and engineering to Boldt. He most recently served as vice president of The Weitz Company, a national commercial contracting firm headquartered in Des Moines, Iowa. “Boldt is a company that values safety, lean fundamentals, and innovation,” he said. “It’s a team I wanted to be part of because of its honestly, integrity, and fairness – as well as the great outcomes it delivers for its customers. I am excited to help Boldt continue to deliver outstanding customer service and give back passionately to the communities it serves.”
Brakebush Brothers Wins National Health Care Award Westfield-based Brakebush Brothers – a chicken processing company – won a National Alliance of Healthcare Purchaser Coalitions Employer/Purchaser Excellence Award in 2019. The company won the award for its innovation in advancing overall health and health care value. The company switched to a self-funded health benefits plan in 2014 and provides employees with onsite health care services, including primary and acute care for employees and family members covered by the plan. Since implementing the self-funded plan in 2014, the per-member health benefit costs have actually decreased according to the company. “The award shows that employers of all sizes, and any location, can make a positive impact in their fight against the rising costs of health care without government intervention, or the need to pass those costs on to its employees,” said Dan Ludwig, Brakebush’s director of benefits and safety.
Paul Bostrom Promoted to President of H.O. Bostrom H.O. Bostrom., a leading designer and manufacturer of seating solutions for vehicles and equipment, today announced the promotion of industry veteran Paul Bostrom to the position of President and Chief Operating Officer. Bostrom joined the company in 1992 in a sales and marketing role and advanced to Executive Vice President, successfully growing sales globally and developing new markets for the Company’s engineered commercial vehicle seating products. Prior to joining the company, Bostrom held positions as a management consultant with Deloitte, Minneapolis, focusing on strategy and operations, and as a design and applications engineer with Modine Manufacturing. He holds an MBA from the University of Chicago Booth School of Business and a B.S. in Mechanical Engineering from the University of Wisconsin-Platteville.
Sargento and Green Bay Packers Increase Charitable Giving During Playoffs As the Official Cheese of the Green Bay Packers, Sargento Foods, Inc. uses its Touchdowns for Hunger program to donate to Paul’s Pantyr in Green Bay and Hunger Task Force in Milwaukee. Through the program, Sargento donates $1,500 for each touchdown the Packers score in the regular season. With the Packers making the playoffs this year, Sargento announced it would double its donations to $3,000 for every touchdown scored. Since it began in 2002, Touchdowns for Hunger has raised more than $1.3 million to help alleviate hunger in Wisconsin and has provided more than one million meals to help those in need. n Have news you would like to have published in Wisconsin Business Voice? Please send your news releases or details to Anthony Birch at abirch@wmc.org.
Wisconsin Business News | wisconsinbusinessvoice.org
Winter 2020 43
E X E C U T I V E P RO F I L E
Michael Best Finds Success Under Krutz’s Leadership A s the leader of more than 270 attorneys in 13 offices across the United States, Michael Best & Friedrich’s Managing Partner, David Krutz, knows what it takes to succeed in the increasingly competitive legal industry. In his 30 years at Michael Best, Krutz has learned that excellent client service goes beyond providing legal counsel. It requires an attorney to demonstrate support for the businesses that bolster local economies. Krutz works hard to ensure all the attorneys at Michael Best take a client-first, business savvy approach. Michael Best has a long history of effectively serving clients in the consumer and industrial products sectors by offering a full line of legal tools, advice and sophisticated counsel to help companies move quickly and effectively. As an American Lawyer 200 firm with roots
44 Winter 2020
in Wisconsin that date to 1848, Michael Best is known for its reliable services, specifically in the manufacturing sector. “For decades, our attorneys have counseled advanced manufacturers in virtually every sector, both as inhouse and outside counsel, giving us a comprehensive perspective for solving their unique business challenges and accompanying risks,” Krutz said. “It’s been an honor to help develop such strong partnerships with the manufacturing sector – and with Wisconsin’s business community.” Michael Best is an active member of various industry organizations and trade associations, including Wisconsin Manufacturers & Commerce, the Waukesha County Business Alliance, and the New North. The Firm has also been a longstanding sponsor of the Annual Wisconsin Manufacturer of the
wisconsinbusinessvoice.org | Executive Profile
Year Awards Program since its inception in 1988. During Krutz’s tenure, he earned several accolades, including Litigation Star for his work in the construction space with Benchmark Litigation each year since 2013. He was also named Milwaukee “Lawyer of the Year” in construction law by The Best Lawyers in America in 2015. Additionally, Krutz is committed to serving his community through philanthropic efforts and board memberships, which include serving as a Wisconsin Manufacturers & Commerce Board Director, Mount Mary University Board Member, Brookfield Economic Development Committee Member and Leadership Council on Legal Diversity Member. n
WMC SEEN & HEARD
Members of the Wisconsin Coalition for Business, Economic and
Individuals, including WEDC’s Vice President of Sector Strategy
Financial Literacy, a group founded by WMC Foundation, together at
Development Vincent Rice, discuss challenges facing rural Wisconsin at
their October coalition meeting.
a Future Wisconsin Project listening session at the WMC headquarters in Madison.
WMC Vice President of Communications & Marketing Nick Novak (left)
WMC Chairman Jay Smith, Assembly Speaker Robin Vos, WMC Vice
leading a panel discussion at the last stop of the State of Wisconsin
Chairman Steve Loehr and WMC President & CEO Kurt Bauer (left to
Manufacturing Tour sponsored by M3 Insurance, featuring DWD Sec.
right) at the WMC Fall Board Meeting in Madison.
Caleb Frostman, Automation Components, Inc.’s Connor Meloy and Kruger Brown’s David Kruger.
WMC Executive Vice President of Government Relations Scott Manley
Attendees at the Wausau Stop of the State of Wisconsin Manufacturing
leading a panel discussion on agriculture issues at the Future Wisconsin
Tour sponsored by M3 Insurance at Northcentral Technical College.
Summit featuring Lakeside Foods’ Glen Tellock, Wisconsin Dairy Alliance’s Cindy Leitner and John Deere Horicon Works’ Steve Johnson.
WMC Seen & Heard | wisconsinbusinessvoice.org
Winter 2020 45
Hartford Chamber Rebrands Community By Scott Henke CEO, Hartford Area Chamber of Commerce
D
ozens of organizations are working on community improvement ideas ranging from increased tourism to workforce attraction. Some work on issues in-house and others work on region-wide initiatives. Although everyone is working to do their best, it’s often with their own slant. Parochialism happens in every community and frequently results in the message being overshadowed by interpretation. In Hartford, we set out to improve the overall economic growth of our community by developing the business climate, increasing downtown shopping, and improving government relations. During the process we soon realized three groups were among us: promoters, detractors and a passive group in the middle. Our promoters were those who were conveying and sharing accurate information. Our detractors, critics who were sharing misinformation and had
CHAMBER FACT Hartford 15% of all Washington County Manufacturing Jobs are in Hartford supported by the busiest non-towered airport in Wisconsin.
46 Winter 2020
negative experiences in the community or were often misinformed about topics, unfortunately outnumbered our promoters three to one. Thus, in order to reach our goal of economic growth in the community, we needed to gain more promoters! We posed the question, “How do we create a marketing plan that would convey positive, accurate information and a genuine message for Hartford? Our plan needed to help change the perspective of the detractors while creating a positive momentum for our promoters to move forward with in the community. As a solution, a group of business people and their organizations worked to knock down the barriers and adjust perspectives through a unified branding effort. Our approach was to tell Hartford’s story in a “living/
wisconsinbusinessvoice.org | Chamber Voice
breathing” document with flexibility that would be able to adapt to new opportunities, changing circumstances, and ongoing continuous feedback. By pooling combined talents and treasures, we were able to create a unified message and family of logos. Shifting perceptions, increasing positive energy, and building community enthusiasm are the best ways to support and increase the number of promoters! As a testament to collaboration, representatives from our chamber, manufacturing community, city government, and downtown district worked together to make this all happen because “This is Hartford, It’s Happening Here!” This Is Hartford We’re a vibrant city masquerading as a small town. We know our neighbors; we smile at strangers and aren’t afraid of hard work or a little snow. We dig old cars and playing outside. We’re just as happy hitting the hiking trails as we are taking in a play. We are proud to be ranked one of the safest Wisconsin communities. We are: Loving our history, building for the future. n
2020 EVENTS WMC EVENTS 32nd Annual Manufacturer of the Year Awards February 20, 2020 • The Pfister Hotel, Milwaukee Business Day in Madison Reception February 25, 2020 • The Madison Club, Madison Business Day in Madison February 26, 2020 • Monona Terrace Convention Center, Madison Wisconsin Chamber of Commerce Executives Spring Conference April 7, 2020 • WMC Headquarters, Madison Wisconsin Safety Council Annual Conference April 19-22, 2020 • Kalahari Resort, Wisconsin Dells WMC Policy Day Details coming soon! • Madison Wisconsin Chamber of Commerce Executives Fall Conference & Retreat September 15-17, 2020 • Lambeau Field, Green Bay Statesmanship Reception Details coming soon! • The Madison Club, Madison
WMC FOUNDATION EVENTS Focus on Manufacturing Breakfast February 21, 2020 • The Pfister Hotel, Milwaukee Business World 2020 Summer Programs June 14-17, 2020 • St. Norbert College, De Pere June 21-24, 2020 • UW-Madison Made in Wisconsin Luncheon October 14, 2020 • Harley-Davidson Museum, Milwaukee Future Wisconsin Summit Details coming soon! • Madison
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501 East Washington Avenue, Madison, WI 53703 | 608.258.3400 | www.wmc.org | WisconsinMC | son, WI 53703 | 608.258.3400 | www.wmc.org | WisconsinMC | WMC501 | @WisconsinMC | wisconsinbusinessvoice.org Winter 2020 47
Contemplating selling your business? Financial planning strategies for business owners In the United States, approximately 54% of baby boomer business owners plan on exiting their business within the next 10 years, and while almost all business owners agree that it is important to have a thorough exit strategy in place, 72% do not have a plan and aren’t taking action.* The decision to exit a business is often very personal and complex to its owner. To help achieve personal, family and business goals, a thorough plan should be put into place. Planning appropriately can be an essential component for protecting and preserving the value of your company for yourself and your heirs. The Burish Group provides essential resources to business owners and their families looking to engage in planning for a major liquidity event. For more information on topics related to business owners and succession planning, please visit our website at ubs.com/team/burishgroup.
Andrew D. Burish, CIMA® Managing Director Ranked #1 Wealth Advisor in Wisconsin and #10 in the US by Forbes, 2019** 608-831-4282 andrew.burish@ubs.com The Burish Group UBS Financial Services Inc. 8020 Excelsior Drive, Suite 400, Madison, WI 53717
Over $4 billion in assets under management (as of 1 January 2020). Relationships with $1 million or more are well served by our capabilities.
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*2015 Securian Financial Group Small Business Owner Life Stage Study. **Forbes Best-In-State Wealth Advisors, 2019; Forbes Top 250 Wealth Advisors in the US, 2019. Accolades are independently determined and awarded by their respective publications. Neither UBS Financial Services Inc. nor its employees pay a fee in exchange for these ratings. Past performance is no guarantee of future results. For more information on a particular rating, please visit ubs.com/us/en/designation-disclosures. CIMA® is a registered certification mark of the Investments & Wealth Institute™ in the United States of America and worldwide. As a firm providing wealth management services to clients, UBS Financial Services Inc. offers both investment advisory services and brokerage services. Investment advisory services and brokerage services are separate and distinct, differ in material ways and are governed by different laws and separate arrangements. It is important that clients understand the ways in which we conduct business and that they carefully read the agreements and disclosures that we provide to them about the products or services we offer. For more information, please review the PDF document at ubs.com/workingwithus. © UBS 2020. All rights reserved. UBS Financial Services Inc. is a subsidiary of UBS AG. Member FINRA/SIPC. VIP_01132020-4 Exp.: 01/31/2021