WMC Business Voice October 2014 by Wisconsin Manufacturers & Commerce (WMC)

Official magazine of Wisconsin Manufacturers & Commerce

October 2014: Issue 12

Keep Wisconsin Open for Business Page 2

Inside: Lead Article: Futurist Wisconsin p. 20 Man Therapy: A New Approach p. 26 Secy. Reggie Newson on Manufacturing Month p. 33 Legislative Voting Records p. 28

Celebrate!

WISCONSIN

BUSINESS VOICE From the Editor WMC conducts a member economic survey twice per year but we haven’t done a general membership satisfaction survey since the 1990s. That changed in June when we asked our members 20-ish questions designed to tell us if we’re doing a good job. Electing pro-business candidates was rated the most valuable member service WMC provides, followed closely by serving as the voice of business in the media and state lobbying efforts. Members also rated WMC as very effective in those three objectives, which means there is a nice alignment between what members want us to do and what they think we are good at.

In this issue… 2

KURT BAUER, WMC

SCOTT MANLEY, WMC

JIM MORGAN, WMC FOUNDATION

Keep Wisconsin Open for Business There’s Something about Mary You Can’t Handle the Truth

Exporting Feature: Milwaukee’s Athea Labs 10 MIKE SHOYS, WMC Progressivism’s Prohibition 12 ERIC BOTT, WMC Behind the Scenes at Mercury Marine 14 PHIL LEVIN, WMC What Happened to the Lead Paint Ruling? 17 JASON CULOTTA, WMC You Say You Want a Revolution 18 GREG GAPINSKI, MILWAUKEE INSTITUTE

20-23

LEAD STORY: FUTURIST WISCONSIN: A LOOK AT THE NEXT 20 YEARS

State fiscal policy was rated the most important issue area by members, which surprised many of us (see Bauer’s column on page 2). Reducing taxes, health care affordability, energy and workforce rounded out the top five.

Top Cop Should Enforce the Laws, 24 Wisconsin’s Not Re-write Them

Business Day in Madison was WMC’s highest rated event. This event is a great partnership with local chambers and numerous industry-specific trade groups and will be held next year on March 4. Second was the relatively new State of Wisconsin Business event, which is coming up on October 15 at the Monona Terrace in Madison.

Guiding Principles for a Working 25 The Government

And speaking of relatively new, this magazine, which will begin its fourth year in January, also received high marks. In fact, 76 percent of our members rate it as either “good” or “excellent.” As the editor of Wisconsin Business Voice all I can say is thank you! In the needs to improve category, some members think WMC is too “Madison-centric,” and needs better “outreach to other parts of the state.” We pledge to work on that next year by getting out a bit more to all corners of the Badger State. We also just launched a new website and will continue our video efforts to better tell the story of all businesses in Wisconsin (see column on page 14). So thanks again for your kind words about the magazine – we’ll keep printing it as long as you keep reading it!

BRAD SCHIMEL, CANDIDATE FOR WISCONSIN ATTORNEY GENERAL

JAY TIMMONS, NATIONAL ASSOCIATION OF MANUFACTURERS

Man Therapy: Stitching up Life’s Wounds 26 JANIE RITTER, WMC/WISCONSIN SAFETY COUNCIL

28 Legislative Voting Records Quality Education: More than Dollars and Cents 30 CHRIS READER, WMC Business World: Inspiring Students, Making 32 Mini a Difference

STEVE BENZSCHAWEL, WMC/WISCONSIN BUSINESS WORLD

Celebrate Manufacturing Month this October 33 SECY. REGGIE NEWSON, WISCONSIN DEPARTMENT OF WORKFORCE DEVELOPMENT

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

Wisconsin Business Voice is published quarterly by Wisconsin Manufacturers & Commerce. WMC is Wisconsin’s chamber of commerce, manufacturers’ association, and safety council representing businesses of all sizes and from every sector of the economy. Send address changes to WMC, P.O. Box 352, Madison, WI 53701-0352. WMC's physical address is 501 E. Washington Avenue, Madison, WI 53703, (608) 258-3400. This publication is proudly printed on paper made in Wisconsin. Kurt R. Bauer, WMC President/CEO Katy Pettersen, Editor (kpettersen@wmc.org) Jane Sutter, Designer (jsutter@wmc.org)

Talk to Your Employees; They’ll Respond 36 JIM PUGH, WMC ISSUES MOBILIZATION COUNCIL, INC.

First Term Reflections 38 REPRESENTATIVES HESSELBEIN (D-MADISON) AND RODRIGUEZ (R-SOUTH MILWAUKEE)

Corner: The First Future Wisconsin 40 Chamber Community

KAREN SZYMAN, THE CHAMBER OF MANITOWOC COUNTY

Keep Wisconsin “Open For Business” Kurt R. Bauer, WMC President/CEO

MC conducts an economic survey of our member CEOs twice per year. The most recent survey in June revealed something that surprised me. When asked “what is the most important issue area for your business,” state fiscal policy ranked number one, beating out reducing taxes, health care affordability and energy.

That result shows businesspeople in Wisconsin get it. They understand when state government amasses big budget deficits and unfunded pension liabilities, tax and fee increases on business are all but inevitable. That is exactly what happened in 2009. Wisconsin had a $6.7 billion budget deficit and Governor Jim Doyle decided to sock businesses with more than $3 billion in new taxes – the largest tax increase in state history. Doyle also used $2.19 billion in federal “stimulus” and what the State Supreme Court ruled to be an unlawful raid of the Medical Patient Compensation Fund to close the gap.

wrestled the disproportionate power wielded by the public unions over government and gave it back to the taxpayers.

The results have been impressive. Act 10 has saved state and local units of government $3 billion and per capita municipal spending has actually decreased three percent, while statewide school funding remained in line with the national average. The Budget Stabilization Fund (aka, rainy day fund) has a $279.5 million balance, the largest since it was created. The state pension system is among the strongest in the nation. And both Moody and Fitch upgraded the state’s bond rating. But Walker didn’t stop there. He cut taxes by nearly $2 billion, including the enactment of the Manufacturers’ and Agricultural Production Tax Credit. He reduced regulations, including checking the authority of unelected bureaucrats to promulgate Administration Rules. And he reformed tort laws to reduce the frequency and expense of nuisance lawsuits. In all, the Legislature has approved at least 90 pro-business reforms since 2011.

Despite being handicapped by the worst national recovery from a major economic downturn since the Great Depression, Walker’s reforms have positioned Wisconsin for growth. The state has created more than 100,000 new jobs and 20,000 new “The Legislature has But that still didn’t do the trick because businesses. Unemployment is both those and similar “solutions,” like selling approved at least 90 pro-business at a five-and-a-half year low and Wisconsin’s share of the multi-state continues to be below the national reforms since 2011” tobacco settlement and using accounting average. Plus, incomes are up, gimmicks that would send a private-sector CFO to which indicate the jobs being created are prison, failed to address the root cause of the problem, which family supporting ones rather than part-time. was too much spending. And according to the aforementioned WMC economic When he took office in January 2011, Governor Scott Walker inherited a $3.6 billion budget deficit that was per capita among the highest in the nation. By then the easy choices were gone. There was no more federal bailout money, there were no more accounting tricks and Walker was rightly deadset against raising taxes. After 15 years running multi-billion dollar deficits, the only thing left was to right-size state spending. But just as importantly, Walker needed to protect those spending reforms by limiting the power of the public sector unions, which had directly benefited from growing government. Wisconsin was the first state to grant government employees the privilege to bargain collectively back in 1959. Prominent liberals like Franklin Roosevelt and former American Federation of Labor President George Meany opposed giving public workers that power because it was contrary to the best interest of taxpayers. Wisconsin Governor Gaylord Nelson did it anyway and what followed over the next half century was a predictable expansion of state and local government and the taxes to support it. By ending the failed collective bargaining experiment in his landmark budget reform law, known as Act 10, Walker 2

survey, an amazingly high 96 percent of state business leaders believe Wisconsin is headed in the right direction. Compare that to the waning days of the Doyle Administration when just 10 percent were optimistic about the state’s future. Walker has a strong record, especially when you consider about a third of his first term was paralyzed by protests and recalls. But while Wisconsin’s transformation from anti-business to business-friendly is remarkable, it is also incomplete. There is more work to be done in order to realize Wisconsin’s full economic potential.

If you agree, then the question is which candidate for governor – Walker or Democratic challenger Mary Burke – is more likely to continue the needed reforms to move the state forward? To me, the answer is clear. Many politicians claim to be reformers, courageous and pro-business, but few have delivered all three like Scott Walker. He has more than earned the business community’s vote for reelection on November 4. BV

Follow Kurt on Twitter @Kurt_R_Bauer

State of Wisconsin Business Event Wednesday, October 15, 2014

Monona Terrace Community & Convention Center, Madison GUEST SPEAKERS Dr. Martin A. Regalia Senior Vice President for Economic and Tax Policy and Chief Economist U.S. Chamber of Commerce Dr. Regalia is senior vice president for economic and tax policy and chief economist at the United States Chamber of Commerce. In conjunction with chamber members, he is responsible for developing chamber policy on tax and economic issues.

Stephen Moore Chief Economist The Heritage Foundation Stephen Moore, who formerly wrote on the economy and public policy for The Wall Street Journal, is chief economist at The Heritage Foundation. Moore focuses on advancing public policies that increase the rate of economic growth to help the United States retain its position as the global economic superpower. He also works on budget, fiscal and monetary policy and showcases states that get fiscal houses in order.

Governor Scott K. Walker Governor Walker remains committed to helping Wisconsin’s private sector create jobs. After years of record job loss, Wisconsin has gained jobs during the Walker administration. In WMC’s annual survey of job creators, 96 percent said Wisconsin is headed in the right direction compared to just 10 percent who said the same thing in 2010.

BUSINESS PANEL Damond Boatwright Regional President/CEO of Hospital Operations SSM Health Care of Wisconsin

Brad DeNoyer Partner Baker Tilly

John Pfeifer President Mercury Marine

WMC Member Celebrates 125th Anniversary The Boldt Company’s business is different than it was in 1889, but it is still driven by its founding values: honesty, fairness, hard work, performance and a love of construction. Those values – and four generations of Boldt-family leadership – have enabled Boldt to grow into a national construction services firm that employs thousands of people on infrastructure projects across the nation and in Canada. “The concept of loving what you do – loving construction – is a strong motivator. That is very powerful for us as a family, but it is also a way we’ve been able to attract the right kinds of employees to be our representatives with customers and in the communities where we work. It’s exciting to see our people at every project I visit. They are engaged and dedicated to working hard for the customer and building communities by not only creating infrastructure, but also through volunteerism and philanthropy,” said Tom Boldt, CEO, regarding to the importance of Boldt’s team.

The Boldt Company has been in business since 1889 but in the past 30 years alone, it has contributed to the economy, infrastructure and job creation by putting in place more than $30 billion in work that supported jobs with a combined almost 100 million work hours. To put it in perspective, that amount of work is roughly equivalent to the GDP

of Nicaragua and could keep about 50,000 people working for an entire year.

Boldt leaders each give different reasons for the company’s success, but they all come back to three ideas: values, people and innovation. “We’ve tried to build a company recognized for its honesty and expertise,” said Oscar C. Boldt, chairman. “Our 125th anniversary is a great opportunity to celebrate success, celebrate the past and most importantly, celebrate what the future holds for us.”

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ELECTION 2014 Scott Manley WMC Vice President of Government Relations

There’s Something about Mary I t’s election season and voters will cast their ballots this fall with far-ranging implications for Wisconsin’s future.

Who we elect to lead our state will have an enormous influence on whether we continue making pro-growth reforms, or whether we go back to the bad old days of higher taxes, more government intrusion and massive budget deficits.

Ask yourself, do you support government mandated wage increases? Do you support repealing the new manufacturing and agriculture tax credit that strengthens two of our most important economic sectors? Do you support ObamaCare, and having the federal government dictate the terms of employer healthcare plans? Do you support the new EPA regulations that will dramatically increase energy prices and disproportionately hurt Wisconsin? Do you support restoring collective bargaining for government workers?

Do you support repealing the recent legal reforms that are curbing lawsuit abuse in our state?

If you answered “yes” to these questions, you’re probably outside the mainstream thinking of Wisconsin’s business community, but you are perfectly aligned with Mary Burke. Despite her best efforts to portray herself as a moderate Democrat, Mary Burke’s views on key economic issues are anything but moderate. Candidate Burke has taken few public positions on issues, but on those she has, she has taken the side of a more powerful and expansive government.

For example, Burke pledged her “unequivocal” support for ObamaCare in an interview earlier this year with MSNBC, despite the fact the new healthcare law is already costing employers and workers more and leaving consumers with fewer choices.

Burke has also been a vocal supporter of raising the minimum wage to $10.10 per hour, in spite of a recent study by the Employment Policy Institute which finds doing so would kill nearly 28,000 Wisconsin jobs.

leaving for another state or country, it is difficult to imagine how increasing labor costs through government-mandated wage hikes will help. With respect to Governor Walker’s signature public employee union reforms, Mary Burke has repeatedly expressed her support for restoring collective bargaining privileges for government workers.

Yet Governor Walker’s reforms have already saved state and local taxpayers $3 billion thus far. Mary Burke has yet to articulate which taxes she would increase or which services she would cut to offset the enormous savings from Act 10. And the incurious media continues to give her a free pass on this critical question. Perhaps tellingly, Mary Burke has yet to differentiate herself from the far-left liberal orthodoxy on any issue of significance to voters. For instance, she is against the proposed iron mine that would create thousands of family-supporting jobs in a region that desperately needs them – a position aligned with radical environmental groups.

Burke also walks the liberal line with her opposition to recent income and property tax cuts, along with her opposition to giving employees the right to choose whether they want to join a union. There is nothing moderate about her stance on those issues. But perhaps the most significant indicator of Burke’s big government philosophy is found in her support for Governor Doyle’s budgeting practices.

While serving as Doyle’s Commerce Secretary, she called his 2007-09 state budget that raised taxes on families and businesses “smart” and “fiscally responsible,” even though it ultimately created a $5.4 billion budget deficit. That enormous deficit led to one of the largest income and property tax increases in Wisconsin history. Given what we know about her stance on key issues, it is easy to draw the conclusion that electing Mary Burke as Governor would equate to a third term for Governor Doyle.

Ask yourself, do we want to return to the bad old days of higher taxes, out-of-control spending and more government intrusion? BV Follow Scott on Twitter @ManleyWMC

At a time when we are fighting to keep Wisconsin jobs from

Wisconsin Business Voice

IT S ABOUT ’

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EQUAL HOUSING

LENDER

www.futurewi.org December 3, 2014 – Wisconsin Center, Milwaukee Make history and shape the future at the same time – attend the first annual Future Wisconsin Economic Summit

What will Wisconsin look like in 20 years? What will our workforce look like? What sort of businesses will thrive in our economy? How will our tech colleges and universities stack up to those in other states? What sort of jobs will be available? Will we have enough people to fill the jobs? The WMC Foundation, together with the partners below, is embarking on a process to help identify and answer those questions and more. The six Quality Competitiveness Indicators to focus on include: • Talent Development, Attraction and Retention • Business Competitiveness

• Global Engagement • Government Effectiveness

THE ECONOMIST

THE ENTREPRENEUR Wes Schroll CEO & Founder Fetch Rewards, LLC

• Life Quality • Entrepreneurial Spirit

THE FUTURIST Kenneth W. Gronbach President KGC Direct, LLC

THE DECIDERS

THE POLITICIAN

YOU! THE SELECTOR J. Michael Mullis President & CEO J. M. Mullis, Inc.

PARTNERS

THE BRANDER Marsha Lindsay CEO Lindsay, Stone & Briggs

FUTURE WISCONSIN Jim Morgan WMC Foundation President

You Can’t Handle The Truth! J ack Nicholson made those words famous when testifying in the movie “A Few Good Men.” At the time, Nicholson’s character was being examined by a Navy lawyer played by Tom Cruise, and the discussion was around military tactics and what it took to run an effective training program to prepare the country to fight enemies, foreign and domestic.

And, still others required additional research such as determining how you measure per capita income while taking cost of living into consideration or, simply put, a salary of $60,000/year buys more in Green Bay than it does in Los Angeles.

It is difficult for an organization to achieve success when success has not been defined and agreed upon by stakeholders. The same goes for the State of Wisconsin as we try to be the most competitive state in the nation. What do we value? What matters? What drives decisions? In other words, what is success?

And, we need people to get the job done. If we don’t have human capital, nothing else matters.

That scene comes to mind whenever there is discussion of Wisconsin’s business competitiveness. For practical and political reasons, I am amazed at how a ranking by a news outlet or think tank can be praised as the best and most accurate portrayal of our business climate one year, and denigrated as worthless data the next – by the same group of people – because it did, or did not, fit their desired outcome.

The Future Wisconsin Project recently convened the Business Competitiveness Task Force. This group of experts from public and private sectors represents a wide range of interests and brings a wealth of knowledge to the process. The Business Competitiveness group examined measures from several other states as well as recent data from the Wisconsin Taxpayers Alliance in its annual publication Measuring Success: Benchmarks for a Competitive Wisconsin, 2014. Some of the business competitiveness benchmarks discussed were met with unanimous agreement – Regulatory and Economic Freedom (Wisconsin is 38th best), State Legal Environment (22nd best), State and Local Tax Burden (10th worst), and Health Care Expenditures Per Capita (15th worst) to name a few. Others generated interesting debates. For example, is the gas tax a business expense that is a negative, or a commitment to infrastructure which is a positive?

The group also discussed the value of the state’s fiscal health. Businesses like certainty and the State of Wisconsin’s financial well-being plays into that sentiment. For instance, the good health of our state pension fund (we’re #1) and the current commitment to bring our state spending in line with our citizens’ ability to pay, are important measures. That includes spending at the local level, too.

While additional work remains to be done, four key areas evolved – cost of business, ease of business, human capital, and state fiscal health. The first three deal with doing business, and the final one deals with the state of the environment in which the business exists. We will now begin to drill down into the key measures that matter, research sources for that data and begin to build an “organization dashboard” or scorecard for Wisconsin that is fair, reliable and consistent. And one we will be able to track over time. This work will result in some decision making at The Future Wisconsin Project Economic Summit on December 3 in Milwaukee. Visit www.futurewi.org for more information. Whether you are Democrat, Republican or Independent, whether your party is in the majority or the minority, we must define and measure business competitiveness and strive to make Wisconsin irresistible to employers and employees alike. If we truly want to be the most competitive state in the nation, there is only question remaining: can we handle the truth? BV

Follow Morgan on Twitter @JimMorgan1960

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

Thanks to these Foundation Sponsors

2014 Awards Program Honoring Manufacturing Excellence in Wisconsin

Thursday, February 26, 2015 The Pfister Hotel, Milwaukee

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2014 applications available online

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The annual awards competition is sponsored by:

EXPORTING Mike Shoys WMC Senior Vice President

Milwaukee’s Athea Labs

A Major Participant in the Wet Wipe Manufacturing Center of the World

or nearly 50 years, Athea® Laboratories has manufactured and private-labeled the highest-quality and -performance specialty chemicals and wet wipes. Products manufactured include wet wipes, grounds maintenance, bacterial/enzyme digestants, industrial cleaners and degreasers, insecticides, winter products and several others. Athea Labs manufacture, inventory, and private-label thousands of liquid, aerosol, wet wipe, and powder products that are sold around the world through distribution and OEM partnerships.

Exporting has become a significant portion of Athea’s business growing from nothing in 2000 when they entered the wet wipe market to about 10 percent of their total revenue today. Because cleaning chemicals contain large amounts of water, making freight a barrier to competitiveness, Athea focuses their international strategy on exporting wet wipes. Athea exports some specialty chemical formulas to Israel, China, South Korea, Australia and New Zealand but most of their export sales are wet wipes to these countries and Europe. Their distributor in Canada has also become a very large customer, boasting a growth trend of over 10 percent per year for the last six years. Athea has always exhibited at the industry-wide trade show, ISSA (International Sanitary Supply Association) North America. A number of years ago they exhibited at the international ISSA show, which takes place every other year in Amsterdam. Through diligent work at the international trade show, they identified a distribution partner in France. Today, they ship a container of wet wipes to France every two weeks. Athea works with local brokers in their export markets who specialize in international shipping to handle logistics challenges such as customs issues. The Wisconsin Economic Development Corporation assisted Athea by providing grants to attend trade shows, helped them comply with Global Harmonization Standards and translated product literature.

While looking to expand in other areas Athea met the owners of a small production facility in Costa Rica. In developing this relationship, they considered shipping concentrates made in Wisconsin, which they quickly realized didn’t make sense given freight cost issues. But the emerging partnership was solidifying and they recognized an opportunity to sell their intellectual property to gain market share in Central America. In the resulting partnership, Athea’s expert chemists in Milwaukee provide formulas for their

cleaning compounds which Athea sells to their Costa Rican partner in exchange for a royalty payment on sales. The production facility, owned by their Costa Rica partners, purchases the raw materials from Athea or locally, then produces, packages and distributes the product in Central America and northern South America.

This partnership has proved to be a simple way for Athea to enter this growing market in which they could not have been competitive otherwise. It has minimized the entry barriers, and the effect of trade regulations, and left the local business practices and customs to their Costa Rica partners. An interesting example is the method of payment for products in Costa Rica. When a product is sold to a customer, for instance, a hospital or a school, the method of payment is to go to that particular facility (hospital/school) during a designated two-hour period on one designated day of the week. You then get in line to receive payment. If time runs out, you don’t get paid. Athea’s local distribution patrner retains people just to perform this function.

Athea’s Wisconsin operations have grown tremendously because of their international business success. About 12 years ago their international sales accounted for less than one percent of sales; today it is around 10 percent of total sales. Because of the growth in not only their international sales but also their domestic sales, their domestic employment continues to grow at a healthy rate.

Steve Hipp, President of Athea, sees their export growth continuing. The company continues to seek market opportunities in other areas of the globe through distribution and licensing arrangements. Steve indicates trade shows within your industry or similar markets can be a great way make contacts to enter a foreign market. He also suggests dedicating one person from the sales team to manage foreign customers and follow up on leads. Find someone on your team who is willing to add this to their duties and is interested in managing foreign accounts. It takes patience and great communication skills to work with foreign accounts, so find that person that has these skills on your team. Steve says “we did not use consultants, but a lot of hard work and a little luck have gone a long way.” BV

Wisconsin Trade Reps Can Help Companies Make Connections in Central America

isconsin companies considering exporting to Costa Rica or elsewhere in Central America can receive expert advice on how to tap into that market through the Wisconsin Economic Development Corporation’s (WEDC) Global Network of trade representatives. WEDC recently expanded its Global Network to include Central America and now has a trade representative who can provide intelligence on Costa Rica, Nicaragua and Panama. Since Wisconsin’s trade representatives reside in the regions they represent, they can provide a unique perspective on the opportunities in those countries as well as key contacts for potential trading partners.

“Not only does WEDC have an experienced team of international experts in Wisconsin, we also now have representatives covering 53 countries around the world who can help open doors and create new opportunities for state businesses,” said Reed Hall, Secretary and CEO of WEDC. “These trade representatives provide vital strategy and training as well as relevant foreign market insights for companies wanting to start or expand their exporting efforts.” WEDC’s network of market development directors in Wisconsin and trade representatives worldwide can assist companies seeking to export to Central America with market assessments, partner searches and business meeting facilitation.

And there certainly are opportunities available in that region for state companies.

In the first half of 2014, Wisconsin exports to the seven Central American countries totaled $233 million, an eight percent increase over the first half of 2013. Costa Rica experienced the biggest growth during that time – 51 percent.

Nearly one-fourth of all exports to Central America are industrial machinery, which includes liquid pumps, sorting machines for minerals and dishwashers. The number two export category is medical and scientific instruments, which makes up 10 percent of Wisconsin exports. Other key imports to the region include automotive vehicles and parts, cereals (wheat, corn and rice), plastics and paper products.

The region also remains highly dependent on the U.S. economy for tourism, remittances and investment flows. Improving U.S. economic conditions bode well for Central American economies.

In 2004, the U.S. signed the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) with five Central American countries (Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua) and the Dominican Republic. The CAFTA-DR creates new opportunities for U.S. companies by eliminating tariffs, opening markets and reducing barriers to services.

As a result, aggregate exports from the U.S. to the region were the 14th largest in the world and third largest in Latin America after Mexico and Brazil. There is a high level of trade between the Central American countries and the neighboring South American countries and in to the Caribbean. Many U.S. companies employ a regional approach, establishing primary distribution in one country with affiliates and satellites in the others. BV

Wisconsin Exporting Fast Facts Wisconsin companies exported more than $11.6 billion in goods in the first half of 2014. top DEstination For Wisconsin Exports in First halF

34+66 34+12+54 46+6+48 52+5+43 57+4+39 34. 0% CANADA

11. 9% MExICO

6. 6% CHINA

4. 1% JAPAN

3.UNITED4%

KINGDOM

Wisconsin’s top ExportED proDucts in First halF

28+72 28+9+63 37+9+54 46+8+46 56+4+40 27. 2% INDUSTRIAl

MACHINERY

9. 2% MEDICAl/

SCIENTIfIC INSTRUMENTS

8. 9% ElECTRICAl

MACHINERY

8. 6% VEHIClES

AND PARTS

4. 5% PlASTICS

proDucts With signiFicant groWth From First halF oF 2013 to 2014

566 55 % % MAlT, CEREAl, DATA GRAINS AND OTHER MIllING PRODUCTS

PROCESSING MACHINES AND COMPUTERS

52 % ORGANIC

CHEMICAlS

40 % DAIRY

PRODUCTS

12 % PlASTIC

PRODUCTS

Source: U.S. Census Bureau data as reported by Global Trade Information Services

ENERGY Eric Bott WMC Director of Environmental & Energy Policy

Progressivism’s Prohibition “O ne of the great mistakes is to judge policies and programs by their intentions rather than their results.” Oft repeated, Milton Friedman’s quotation stands in some regard as a litmus between progressive and conservative economic and governing philosophies.

On its face this proposal sounds impressive and a 30 percent reduction in GHGs from one of America’s largest sources is in fact significant. Significance, however, should not be confused with effectiveness.

EPA’s most optimistic scenario predicts a 555 million metric ton (mmt) reduction in CO2 emissions in 2030. This may sound like a lot but will only represent 1.3 percent of projected global CO2 emissions that year. To put it another way, the entirety of America’s reduction will be offset by just 13.5 days of emissions from China.

Progressivism places great value in intentions. Well-meant policies like the minimum wage remain popular in progressive circles despite the accumulation of decades of evidence the minimum wage hurts those it espouses to assist by limiting access to entry level job opportunities. Likewise, progressivism clings to rentcontrol policies, again enacted with the best of intentions, long after they’ve shown to reduce both the quality and availability of affordable housing.

EPA’s plan for Wisconsin creates similar inefficiencies by recommending state compliance through a series of sometimes contradictory building blocks. For example, EPA calls on Wisconsin to increase the Even so, EPA’s projection might be overly efficiency of its coal fleet by six percent. optimistic if Germany’s recent experience It then recommends Wisconsin run its is at all indicative. Under its trillion-euro plants less frequently Energiewende or energy and intensely, transition plan, Germany “Running coal plants at anything replacing their has seen its share of less than full throttle actually reduces output with electricity generated from renewable sources their efficiency and greatly increases their greater use of natural gas and rise to about 30 percent carbon emissions...” new renewables. during the first six months of The problem is that this year. The transition hasn’t been cheap. running coal plants at anything less than Average electricity prices for businesses full throttle actually reduces their efficiency have jumped 60 percent over the past five and greatly increases their carbon emissions years and are now close to triple those in per megawatt hour of generation. the U.S.

Million metric tons emissions CO

Americans are being asked to invest billions of dollars through higher utility rates in another sweeping progressive idea based largely on its intentions rather than its likely outcomes – the Environmental Protection Agency’s (EPA) proposed carbon regulations. The EPA’s Clean Power Plan calls on the power sector to reduce greenhouse gas (GHG) emissions to 30 percent below their 2005 levels by 2030 nationwide. Wisconsin’s goal is slightly more aggressive at 34 percent. 45,000

Costs aside, Energiewende is on track to achieving the Bundesrepublik’s renewable goals. Whether its industrial sector will survive the transition intact is another matter Total global CO emissions as is the perverse impact without EPA regulation the transition is having on the nation’s carbon Total global CO emissions with EPA regulation output. Last year Germany emitted 1.2 Question: How much CO reduction will be achieved by EPA’s proposed new regulation on existing power plants? percent more CO2 than Answer: Not much Cost: $7 billion/year according to EPA it did in 2012. How could Germany‘s carbon Total US CO emissions emissions increase without EPA regulation Total US CO emissions concurrent with with EPA regulation growth in renewable 2010 2020 2030 generation? Well in part because Germany is transitioning away from 2

40,000 35,000

30,000 25,000

20,000 15,000 10,000

5,000

1990

Source: EPA Carbon Pollution Emission Guidelines for Existing Stationary Sources: Electric Utility Generating Units, Proposed Rule http://www.regulations.gov/#!docketDetail;D=EPA-HQ-OAR-2013-0602 US Energy Information Adminstration International Energy Outlook 2013. Table 21. World carbon dioxide emissions by region and country in Reference Case, 1990-2040 http://www.eia.gov/forecasts/ieo/table21.cfm

carbon-free nuclear and in part because increased reliance on renewables has injected tremendous inefficiencies into its existing power infrastructure.

Details like this, however, may become a sidebar to the plan’s ultimate outcome as even under EPA’s best case scenario, each ton of CO2 reduced by America in 2030 is projected to be met with 16 tons of increased emissions in the rest of the world. The overriding outcome remains clear; EPA’s plan won’t substantially impact global temperature or climate. Thankfully, Americans have a history of rejecting well intended progressive projects gone awry. Ratification of the 21st Amendment after 14 years of prohibition is proof enough of that. Hopefully it won’t take quite so long for America to reject Progressivism’s latest attempt at dogooding. BV

Follow Eric on Twitter @BottWMC

Company News Member Company Home to America’s Tallest Flag Pole

Photo courtesy of ACUITY

Acuity recently erected a 400-ft pole that bears an American flag measuring 60 feet high by 120 feet long. The flagpole is one of the most visible landmarks on the Interstate 43 corridor and was raised as a symbol of gratitude to our country and those who defend it. Acuity, headquartered in Sheboygan, is a property and casualty insurer that operates in 22 states. To construct a flagpole of this size, Acuity has contracted over a dozen specialists from within Wisconsin and across the country to ensure that the project creates a safe, lasting and fitting tribute.

Southwest Airlines to Celebrate Anniversary in Milwaukee

Southwest Airlines is celebrating its fifth anniversary of bringing low fares to Milwaukee on November 1, 2014. In the five years since touching down at General Mitchell International Airport, Southwest has grown to become the largest carrier in Milwaukee carrying nearly half of all passengers. Today, the airline operates more than 45 daily departures to more 20 destinations including Cancun, Mexico while employing nearly 200 People.

Mayville Engineering Company Announced Expansion Plans

Mayville Engineering Company, Inc. (MEC) recently announced plans to open a state-of-the-art manufacturing facility in Atkins, VA. The facility will feature over 148,000 sq ft and include the latest high tech equipment to manufacture products for the nation’s leading blue chip original equipment manufacturers. MEC will invest $10 million to expand its Virginia operations.

WMC Member Named Chamber Executive of the Year

Eau Claire Chamber President and CEO, Bob McCoy, CCE, was named Chamber Executive of the Year by the Mid America Chamber Executives (MACE) organization. MACE is a six state group of Chamber professionals (Iowa, Minnesota, Nebraska, North Dakota, South Dakota and Wisconsin). There are over six hundred chambers in the six states. McCoy was recognized for his dedicated thirty four years leading four chambers in Rock Rapids, IA, Fairmont and Albert Lea, MN and Eau Claire, where he has been for the past 20 years.

Five Startups Begin gener8tor’s Milwaukee 2014 Program

This July, gener8tor, a Wisconsinbased startup accelerator held its fifth Milwaukee 2014 Program at their downtown Milwaukee office. Since June, 2012 the 23 startup graduates from gener8tor’s previous four accelerator programs have to raised nearly $25 million in financing and created over 150 jobs. Over the course of the 12‐week gener8tor program, gener8tor invests its community, capital, mentorship, network and expertise into each company. In addition to gener8tor’s initial $20,000 cash investment, each participating company is guaranteed $50,000 of additional follow‐on investment from gener8tor and its investment partners, Angels on the Water and Wisconsin Investment Partners. The five companies participating in this year’s program are: Beekeeper, Madison; HITLIST, Provo, UT; Modern Movement, Madison; Project Foundry, Milwaukee; and Stock Mfg. Co., Chicago, IL.

A & E Tools Announces New President and COO

A & E Tools of Racine, a leader in the design and manufacturing of automotive and industrial specialty tools and diagnostic equipment, named John (Ian) Lang as the new President and Chief Operating Officer. Ian Lang succeeds John R. Lang who remains President and CEO of the parent company, A & E Incorporated. Ian Lang has previously held various senior management positions within the organization, most recently as president of A & E’s Eckmann Custom Products Division and is the fourth generation family member to serve in a leadership role within the company.

Associated Banc-Corp CEO and president Nominated for Green Bay Packer’s Board

Philip B. Flynn, President & CEO of Associated Banc-Corp, was elected to the Green Bay Packers board of directors at the organization’s annual meeting held in July at Lambeau Field. An estimated 13,000 Packers shareholders attended the event. Associated is a current sponsor of the Packers and has served as the organization’s bank since 1919.

Wisconsin Business Voice

BUSINESS PROMOTION Phil Levin WMC Video Producer

Behind the Scenes at Mercury Marine Go Inside the Motors and Factory Most of the World Never Sees

hen dozens of YouTubers in Belgium log in to see our factory tour from Fond du Lac, it puts in perspective Wisconsin’s worldwide manufacturing stature.

Mercury Marine isn’t just a household name from West Allis to Ashland, but apparently also in places like Brazil and the Netherlands if our analytics are any indication. WMC’s access inside the highly competitive global engine business gave us a glimpse of what it takes to make today’s modern motors while the world watches.

For me, the highlight of our visit was the time spent inside Mercury Marine's semi-anechoic chamber. It’s where they test engine noise, and a room so quiet it makes you wonder how anyone sleeps in a world so relentlessly noisy.

An engine slips into a small pool in the center of the floor, as microphones face the motor from every direction. The technicians told us it is just as important their products are quiet as it is they sound like a Mercury motor, a noise as much a part of their branding as the badge on the side of the shell.

The other surprise was on the manufacturing floor, where skilled human hands guide every step of assembly. The engines cling to powerful arms traversing tracks on the ceiling and slide between stations. If you have seen how some cars are assembled today it seems like they are touched only by pre-programmed robots, something altogether different than what we saw in Fond du Lac. Technicians of every age run tests, tighten bolts, and tease in the wiring. When the shiny black cases are closed and shipped around

the world they hide just how much careful craftsmanship and expertise goes into putting a single engine in the water.

You also wouldn’t know from watching the video that Mercury Marine President John Pfeifer had only been in the role for a week when we talked to him, replacing Mark Schwabero, now President of the parent company Brunswick Corporation. We were the first group to interview him in his new role outside of their local radio station. If you haven’t seen the story check it out at wmc. org/mercury to watch how they make propellers, engines and even get a look inside the testing labs. As you might expect, Mercury’s plant is filled with prototype products and trade secrets so it isn’t the type of access they can offer often.

Watch WMC’s video about Mercury Marine on wmc.org/mercury.

Since our visit, Mercury Marine has launched four new world-class engines adding new offerings to what is already an impressive lineup of outboard and sterndrive engines. From its regional headquarters in Canada, China, Brazil, Belgium and more, it's easy to understand why we now have YouTube friends from Canada to Japan and Mexico to Thailand asking: What’s in the water at Mercury Marine? BV For information on how WMC can tell your story call Katy Pettersen, (608) 258-3400

Check out WMC’s latest videos.

WMC501 wmc.org/grothman Sen. Glenn Grothman answers WMC’s questions as candidate for the 6th Congressional District.

Wisconsin Business World wmc.org/bwtv Business World is on TV! Check out BW’s 30-second commercial and interviews with the BW Director on Madison’s CW 57.

WMC501 wmc.org/epa WMC’s Scott Manley breaks down the intricacies of proposed EPA regulations.

Wisconsin Safety Council

wmc.org/lacrosse Students and Professors at UW-La Crosse saved the lives of two people this spring using CPR taught by the Wisconsin Safety Council.

WMC501 wmc.org/regalia U.S. Chamber lead economist Dr. Martin Regalia headlines the State of Wisconsin Business Event October 15 in Madison.

Wisconsin Safety Council wmc.org/expera Expera Specialty Solution’s Nicolet Mill recently won with the Wisconsin Corporate Safety Award, being recognized for working 561 days without an OSHA recordable incident.

Today’s Young Professionals = Tomorrow’s Young Leaders Connecting Wisconsin’s Future Business Leaders

any communities have “Young Professionals” groups and each one is different. Some have hundreds of members who hold events and help their organizations understand the next generation of leaders. Some are a small group who connect via social media only, and some simply meet to solve the world’s problems at a bar on Friday night (this is still Wisconsin!). But there has not been a central statewide group to connect them all. Until now… WMC Foundation, at the suggestion of local chambers and young professionals groups in communities statewide, will serve as the statewide coordinator for the local YP groups. The coming generations are soon to be the next leaders of Wisconsin’s companies, large and small. It would be helpful for them to understand the issues affecting Wisconsin businesses,

and for Wisconsin Young businesses to Professionals understand how the issues affect Of Wisconsin future generations. In addition, the Wisconsin Young Professional group will focus its mission on helping its members improve networking skills, manage generational differences at work, and identify opportunities for leadership roles both in the community and at the office. If you know someone who would benefit from this up-andcoming group, encourage them to visit www.wmc.org/yp for more information. Together – we can help shape Wisconsin’s future. BV

Wisconsin Business Voice

You see the destination. We see your path. Insight. Experience. Passion for business. And a promise that we’ll work as hard making your business a success as we do our own. Because to us, the only true measure of our success is yours.

OFFICES IN MILWAUKEE, MADISON, WAUKESHA, GREEN BAY AND APPLETON, WISCONSIN AND WASHINGTON, D.C.

LEGAL REFORM Jason Culotta WMC Director of Tax & Transportation Policy

What Happened to the Lead Paint Ruling?

recent federal appellate court ruling overturned a lower court ruling, allowing plaintiffs alleging lead poisoning to resume lawsuits against paint manufacturers. Wasn’t this issue put to rest by Governor Walker and the state Legislature earlier? Well, for the most part, yes.

The “Lead Paint Ruling” is perhaps the leading judicial issue which spilled over into legislative action for the state’s business community. This is because of a 2005 state Supreme Court decision which allowed suits to proceed against all manufacturers of paint that contained lead (which was not widely considered to be a contaminant at the time), regardless if they were at fault. That’s right, guilty until proven innocent. This legal concept, “risk contribution theory,” declares a class of people – such as lead paint manufacturers – are all guilty because they manufactured a potentially harmful product at the same time. Under this theory, the burden of proof is on the defendant to demonstrate innocence.

Soon after Governor Walker and Republican majorities were sworn into office in 2011, risk contribution theory was essentially eliminated in Wisconsin tort law on a prospective basis. This legislation, part of 2011 Wisconsin Act 2, remains the law in our state today. The real issue debated this summer is a separate provision retroactively applying the 2011 law to suits filed prior to enactment based on the risk contribution theory. This retroactivity, passed in 2013, is what the federal 7th Circuit Court of Appeals found objectionable and overturned July 24, 2014.

This appellate decision allows claims filed prior to the adoption of the 2011 law to proceed. The court ruled risk contribution theory is constitutional and can be used by the plaintiffs. But nothing changes to allow similar claims to be filed since the enactment of Act 2.

corrections offered by the Legislature earned Wisconsin the title of “Alabama North” by The Wall Street Journal.

Thankfully, Governor Walker and the Legislature have since passed a wave of reforms restoring balance to our legal system and reinstating the traditional tort standard – innocent until proven guilty – requiring a plaintiff to prove injury for cases like lead paint poisoning. The gubernatorial election of November 4 is rightly commanding the attention of the voters and press. Will the business community remember these injustices when Justice Bradley stands for reelection next spring? BV

Follow Jason on Twitter @JGCulotta

Business Day in Madison March 4, 2015

Monona Terrace Community & Convention Center

www.businessdayinmadison.com KEYNOTE ADDRESS John Stossel

“The Importance of Economic Freedom and the Free Market”

The 2005 state Supreme Court decision allowing risk contribution theory, Thomas v. Mallett , was part of a barrage of rulings the liberal majority on the state Supreme Court issued that year aimed squarely at the state’s business community. Among that majority was Justice Anne Walsh Bradley, who had just been re-elected without opposition in April 2005. The damage inflicted on the state’s tort climate by these rulings and subsequent efforts by then-Governor Doyle to veto any

Wisconsin Business Voice

You Say You Want a Revolution… By Gregory A. Gapinski

’ve always been a Beatles fan. Not only because of the great music they created, but also because of the messages they communicated in their songs. Some of the messages were quite simple; others were nearly subliminal and easy to miss if you weren’t listening closely. John, Paul, George and Ringo probably weren’t speaking to business in Wisconsin when they wrote their song in July 1968, but there is no doubt a tie to our current state of affairs in 2014. A manufacturing revolution is upon us, not just with the introduction of new machines, materials, and widening overseas markets – but more interestingly, the way manufactured products are envisioned, improved, and designed through the use of advanced software with its modeling, simulations visualization and analytics techniques.

Evidence of the advanced analytics revolution is everywhere. Companies like Briggs & Stratton are doing more work using modeling and simulation software run on large, sophisticated high performance technical computing clusters. These technologies allow engineers at Briggs to test new product designs and manufacturing techniques which can be evaluated in just days instead of months, thus speeding product development cycles and getting new, innovative and higher quality products to market in record time. A partner in Briggs’ success is the Milwaukee Institute which runs the largest publically available high performance computing cluster in the state. The Institute allows Briggs, and companies like it, the added resources they normally wouldn’t have to run large modeling, simulation and visualization jobs using advanced software tools from companies such as ANSYS, Convergent Science, MATLAB and COMSOL, but also the countless tools from the open source community. As a further catalyst in the revolution of advanced analytics and big data in Wisconsin, the Milwaukee Institute has sponsored computational science grants to six Wisconsin companies.

A portion of the grant funding has come from the Wisconsin Economic Development Corporation (WEDC) which has also recognized the importance of advanced tools to foster manufacturing innovation. Grant awardee companies include Oilgear, Milwaukee; Metamodeling, Madison; H2Oscore, Milwaukee; Dedicated Computing, Waukesha; Microbe Detectives, Milwaukee; and Helionx, Madison. Their projects and manufacturing efforts range from developing a neutron radiography camera, to development and testing of a hydraulically powered pumping system for fracking, to cooling technology for compact computers. Progress with the companies is going well, and their finished solutions are planned to be announced later this year. Make no mistake, accelerated innovation is revolution. And companies like those listed above are smack in the middle of it. Traditional methods of product creation and manufacturing of new products can take several months, and even years. With advanced analytics modeling tools and high performance computers, development, design and testing can be done in days. “You say you want a revolution well you know, we want to change the world.” Wisconsin manufacturers may be reluctant to invest directly in creating a high performance computing infrastructure as part of their product development process given perceived capital costs and steep learning curves. However, by moving to a “shared model”, similar to a public utility, costs for technical expertise and infrastructure are not deemed direct capital investments. Instead, companies and organizations pay for only what is used and only when it is used.

This shared model is exactly what the new engines of innovation are doing at University of Wisconsin - Milwaukee, Marquette University, MWeRC, the Water Council and the newly built UW Milwaukee Innovation Campus. Instead of building their own technical computing infrastructures, they rely on the Milwaukee Institute’s MGrid infrastructure to augment their innovation hubs allowing for the sharing of product development optimization techniques and best practices. Yes, being part of a revolution is exciting, but it also can be uncomfortable, especially when business leaders are constantly watching their bottom lines. However, global competition is driving us all to think differently, act quicker and adjust on the fly. I’m convinced Wisconsin manufacturers inherently know this and will eventually get on board. Perhaps they will take comfort in the final words of the Beatles rock classic, “Don’t you know it’s gonna be alright, all right, all right, all right…” BV Greg Gapinski is Director of Business Development at Milwaukee Institute. Learn more at www.mkei.org and contact Greg at (414) 727-6411.

Pictured with Lt. Governor Rebecca Kleefisch are Milwaukee Institute 2014 Computational Science Grant winners: Oilgear, H2Oscore, Metamodeling, Helionx, Dedicated Computing and Microbe Detectives.

WMC at Home and on the Road

Business World students this summer toured the Ariens Company manufacturing operations in Brillion.

The Future Wisconsin Project comprises advisory groups to help shape the future of the Badger State. Pictured here are Gary Gigante, President & CEO of Waupaca Foundry; Jim McIntyre, President & CEO of Greenheck Fan Corporation; Morna Foy, President of Wisconsin Technical College System; and Karen Szyman, Executive Director of The Chamber of Manitowoc County.

WMC’s Kurt Bauer, center, met with Dave Anderson and Secretary Reggie Newson from Wisconsin Department of Workforce Development to discuss workforce issues in Wisconsin.

4 3

Rep. Dale Kooyenga was presented the WMC Champion of Free Enterprise Award for his outstanding leadership cutting taxes and a Working for Wisconsin Award for his 100 percent pro-jobs voting record on business legislation in the most recent session. Pictured are Laura Timm, Vice President of Communications, Briggs & Stratton; WMC’s Eric Bott and Jason Culotta; Rep. Dale Kooyenga; Todd Teske, Chairman, President & CEO, Briggs & Stratton; along with WMC’s Chris Reader and Scott Manley.

5 6

Part of WMC’s volunteer team posed for a picture before heading out for the United Way Day of Caring. The Wisconsin Safety Council honored VJS Corporation for achieving two million hours without a lost time incident are Bruce Goranson and Craig Jorgensen from VJS and Janie Ritter, WSC Director.

WMC’s Kurt Bauer met with leaders from other state manufacturer associations this summer. He is pictured here with Jay Timmons, President and CEO of National Association of Manufacturers, and Greg Baise, President and CEO of the Illinois Manufacturers Association.

FUTURIST W

WISCONSIN What Will Wisconsin’s Economy Look Like in the Future? By Mark Crawford

isconsin has a long history of perseverance and innovation. We know how to roll with the punches – things like flooding and drought, depressions and recessions, job losses, energy costs and competition from lowcost countries. We also know how to be lean, operate efficient supply chains, invent life-changing products and stay competitive on the global stage. But that’s not enough – a process or market that is stable and manageable today may not be five, ten or twenty years from now. That’s why Wisconsin industries must stay focused on the future and do what it takes to stay on the leading edge of business – not just for their own profits, but for the millions of people across the country, and the world, who depend on their products and services. Wisconsin Manufacturers & Commerce, in conjunction with the Wisconsin Economic Development Corporation, the University of Wisconsin System, the Wisconsin Technical College System, the Wisconsin Department of Workforce Development and the Wisconsin Association of Independent Colleges and Universities is embarking on a new initiative called “The Future Wisconsin Project.” This effort will result in recommendations for a 20year strategic plan for Wisconsin. For a glimpse of what things might look like in the future, we asked representatives of some of Wisconsin’s leading industries about the key challenges their industries will face during the next twenty years.

Healthcare

Wisconsin consistently ranks in the top five states for health care. This is the result of a long-term plan put into place over a decade ago, when its healthcare leaders recognized integrated services would increase quality of care and reduce costs – well before the Affordable Care Act was a gleam in President Obama’s eye. “Wisconsin got it right when it came to advancing integration, far earlier than almost everywhere else in the country,” says Steve Brenton, President and CEO of the “Farmers are good at dealing Wisconsin Hospital Association with change. The ones who can (WHA).

As a result, Wisconsin hospitals stay relevant by learning and already know how to collaborate, which will only get better in the using new technologies, tools future. “Most WHA members and strategies will be the ones no longer view themselves strictly as hospitals in the that survive.” historic sense,” says Brenton. “Instead, they see themselves as local or regional integrated healthcare organizations.” Brenton notes there will also be greater emphasis on partnerships in the future, especially for providing access to behavioral health – a critical need in the state. Hospitals will continue to evolve away from in-patient care to out-patient care (surgeries, diagnostic testing, disease management and procedures). This includes using the “medical home” and “accountable-care organization” models, through which primary care is delivered by an integrated team of physicians and other clinicians.

Wisconsin Business Voice

Big challenges remain for the future: inadequate reimbursement from government, cumbersome government regulations and workforce challenges. In-patient stays will be a diminishing source of revenue – possibly by as much as 30 percent for large hospitals and 20 percent for smaller rural hospitals.

Steve Brenton

“Twenty years from now almost every hospital will be owned by, or partnered with, a large integrated delivery organization that employs physicians, provides a wide array of community services and owns a health plan,” says Brenton. “Hospitals in the future will continue to develop skills to manage population health and become more efficient on the cost side of the equation.”

Banking

The banking industry has gone through major changes since the real estate crash and the Great Recession. More changes are expected in response to customer expectations, regulatory requirements, technology, new competitors and shifting economics and demographics.

“Industry consolidation will continue, as small and mid-size banks look to merge or consolidate in order to achieve economies of scale,” observes Rose Oswald Poels, President and CEO of the Wisconsin Bankers Association.

Technology is a driving force in the industry, especially for consumer products and services that enhance the customer experience, especially mobile applications. This also creates new challenges for complying with regulations and security standards. Technology is also changing the payments segment of the banking industry at an extraordinary rate. “I expect we’ll see a heightened focus on systemic risk reduction and control that will require cooperation between the banking and retail industries,” she adds. Rose Oswald Poels

As banks utilize new technologies, products and services, more regulations will follow. “This raises the question of how banks will approach their compliance management systems in the future,” she says. “For example, two or three smaller institutions might share a compliance officer.” Banks will have to be more adaptable than ever to survive. The rate of advance for technology and consumer demands will continue to accelerate, pressuring financial institutions to adjust even more quickly in order to stay relevant. “Banks need to continue to focus on their primary business of accepting consumer deposits and making loans,” says Poels. “When the industry loses sight of these priorities, that’s when trouble brews. Twenty years from now banks will accept deposits and make loans in very different ways compared to today, but the principle will be the same.”

Real Estate

Real estate, combined with new construction, contributes about 15 percent of the gross state product.

Mike Theo

“For every $100 spent on the purchase of new home, about an additional $44 is spent in other sectors of our state’s economy,” says Mike Theo, President of the Wisconsin REALTORS® Association. “For every $100 that is spent on new home construction, roughly $50 is generated in federal, state and local revenues.”

Of course, Wisconsin’s real estate market was rocked by the Great Recession and is still recovering. As the market rebounds, communities are working through excess inventory, foreclosures and excess homes for sale. As of July, we have 10.2 months of supply. A balanced market is considered by most economists to be six months of supply. But the difference between urban and rural is dramatic. Metro housing markets in July had eight months of inventory while rural counties had 16.8 months. Key to driving the recovery of the real-estate market is the job market. “We need to have the jobs that will bring the workers who will buy the houses,” says Theo. “The rate of in-migration really depends on job creation. In Wisconsin, we need more manufacturing jobs.”

Major challenges going forward continue to be government regulations. As a result of recession-related banking woes, Congress has taken a more active role in regulating banking and lending. It is harder to qualify for mortgages or refinancing. Another concern is the government’s interest in handing Fannie Mae and Freddie Mac over to the private sector, which could make it harder to get a 30-year mortgage. “There are also discussions about major tax reform – if housing-related deductions like mortgage interest and property taxes are eliminated, that will also make it more difficult to buy a home, especially in a high property tax state like Wisconsin,” says Theo.

Agriculture

It might surprise people to know farming is on the rise in Wisconsin. The total number of farms has increased over the years, especially smaller farms that supply niche markets. About 95 percent of all farms in Wisconsin are family-owned.

Jim Holte

Farms that are doing well today have learned how to be efficient, notes Jim Holte, President of the Wisconsin Farm Bureau Federation. “They have also diversified in terms of size and style, being heavily influenced by what their customers want – for example, the organic market.”

Twenty years from now the dominant crops will still be corn, soybeans, alfalfa and wheat. But Holte believes science and research will identify other crops that can thrive in the state – including genetically modified organism (GMO) varieties. “GMO is an emotional issue,” says Holte. “But GMO crops are designed to need fewer pesticide applications, often with lower-level toxicities. This is better for the environment and makes farms more efficient.” Because of improved farming methods and advanced technology, it takes fewer people to produce larger amounts of food. Less labor

is required. An increasing number of farming tasks like planting and harvesting are automated, using GPS technology. “Right now you still need somebody to operate the combine or tractor, but it is steered by GPS,” says Holte. “A few years from now you may see tractors operating in a field with no human on board.” Drones will become “standard” farm equipment that routinely view crops, measure growth rates and fertilize and water crops – “operated by a farmer sitting at a laptop,” says Holte. “Farmers are good at dealing with change. The ones who can stay relevant by learning and using new technologies, tools and strategies will be the ones who survive.”

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Manufacturing is the backbone of the Wisconsin economy. It perhaps faces the greatest challenges of any Wisconsin industry – battered by the recession, facing incredible pressure from low-cost countries and dealing with a looming labor shortage.

A projected decline in the number of working-age people is a problem for all U.S. manufacturers, especially in the Midwest, which is losing population faster than other parts of the country. “In Wisconsin, the working-age population will grow by just 0.4 percent by 2030,” says Kurt R. Bauer, President/CEO of Wisconsin Manufacturers & Commerce. “This labor shortage is the biggest single factor blocking a more dramatic recovery of the manufacturing sector and the overall U.S. economy.”

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Although manufacturers will increasingly use automation to stay competitive, they still need skilled and motivated workers. It is imperative manufacturers collaborate with K-12 and technical colleges to develop a workforce of skilled, motivated manufacturing workers. “Internships and apprenticeships help expose young people to manufacturing career options and need to be embraced by both manufacturers and educators alike,” says Bauer.

Big challenges for U.S. manufacturers are the federal government policies that hurt their industries. It costs U.S. businesses a staggering $2 trillion per year to comply with regulations from a host of agencies, including the Environmental Protection Agency, National Labor Relations Board, Internal Revenue Service and the Occupational Safety and Health Administration.

These regulatory decisions are also hurtful to the energy industry. “The federal government needs to change its policies that are hostile to U.S. and North American energy resources,” says Bauer. “Fully embracing North American energy resources could drive a nationwide economic recovery and all but insure the 21st century will be a second ‘American Century.’ ” BV Crawford is a Madison-based freelance writer.

Wisconsin Business Voice

Wisconsin’s Top Cop Should Enforce the Laws, Not Re-write Them By Brad Schimel

s the Republican candidate for Wisconsin Attorney General, I understand the important role business and manufacturing plays in Wisconsin and the jobs they provide to our citizens. Manufacturers, small businesses, farmers and the hard-working families of our state are the backbone of our economy. All of them depend on a stable and predictable legal and regulatory environment to protect existing jobs, bring new jobs to the state and ensure Wisconsin’s economy continues to thrive. The Wisconsin Department of Justice is crucial to Wisconsin’s economy and mitigating the disastrous effects of increasing regulatory overreach by the federal government. Throughout my 25-year career I’ve been a strict rule-of-law prosecutor in Waukesha County and will continue to enforce the law evenly as Attorney General. It’s not the role of the state’s top cop to play politics or pursue radical political agendas. The government should not be in the business of picking winners and losers – enforcing the rule of law will ensure everybody is treated the same by the Department of Justice.

It should be the Attorney General’s priority to work with individual state agencies and to closely scrutinize all cases being handled by the Department of Justice. The Wisconsin Supreme Court decision, Lake Beulah Management Dist. v. Village of East Troy, is the perfect example of why the Department of Justice must work more closely with individual state agencies. In Lake Beulah, the DNR hired outside counsel with an environmental agenda who was successful in convincing the Supreme Court to expand the state’s public trust doctrine well beyond its original intent. If the Attorney General is not closely monitoring all cases within the department, we risk sending these cases to the Supreme Court and creating bad case law.

The Attorney General’s job is to protect Wisconsin consumers from unlawful activity. In addition, the Attorney General must ensure the state agencies are properly following laws and not overstepping their regulatory authority. As Attorney General, I will work with agencies to make sure they follow the proper rulemaking process and properly issue permits. For example, I will ensure that state agencies are not unlawfully imposing permit conditions or promulgating rules when they do not have explicit authority to issue those rules or conditions.

There is a clear contrast between my opponent and me. My opponent has publicly stated she wants more control and oversight of mining and has sided with the Obama administration’s onerous regulations targeting coal-fired plants. My opponent appears ready to sacrifice good Wisconsin jobs by pursuing an extreme environmental agenda. Her stance on these issues is reminiscent of when the Department of Justice sued a cranberry farmer in northern Wisconsin and signed onto multi-state lawsuits against businesses. Wisconsin cannot afford to return to the days when the Attorney General targeted businesses by filing frivolous lawsuits. As Attorney General, I will build upon the successes over the past eight years and make it a priority to work more closely with Wisconsin businesses. BV Brad Schimel is the Republican candidate running for Attorney General in the November 4 election.

Horicon Bank Sponsors Honor Flight

Earlier this year, Horicon Bank commited to a bank-wide campaign to send local Wisconsin veterans to Washington, DC with the Wisconsin Honor Flight Network. “As a veteran myself, I am excited to see us fulfill this opportunity for other local vets,” said Bank President Frederick F. Schwertfeger. “We have challenged our offices in each market to come up with creative ways to raise money to send our local veterans on this special trip.” But Horicon Bank isn’t just investing creative ideas. “We have also committed to covering up to half the cost for each office participating to send one veteran and a guide to Washington, DC,” explained Schwertfeger. “Our goal is to send 13 local veterans and 13 guides on the Honor Flight.” The cost to send a veteran and their guide to Washington, DC on the Honor Flight is $1200. Horicon Bank has promised to match up to $600 for each participating office or market that can raise the other half of the funds.

Over 60 people attended the first ever Horicon Bank Honor Flight 5K Run/Walk in Neosho and between registrations, corporate sponsorships and donations, more than $3,600 was raised. As a whole, Horicon Bank has also hosted multiple Shred Day events (having customers come into shred documents and giving a donation), a brat fry, a kid’s carnival and they plan to participate in a Pepper Festival in Beaver Dam selling “Stuffed Pepper” chili with proceeds going toward the Honor Flight. 24

The Guiding Principles for a Working Government By Jay Timmons

ext month, voters in Wisconsin and across the nation, will go to the polls for Election Day. But, for manufacturers and others in commerce, are we confident about what that vote will yield? The answer too often is no. We can, however, change that.

face the key challenge: how do we judge which candidates are worthy of our support? With the right guiding principles, we can effectively identify those individuals who will make the prudent choices for our economy and our country.

At the National Association of The American people understand our Manufacturers (NAM), the voice of economic system is at the core of our manufacturers of all sizes and sectors in the founding as a nation. Capitalism is part United States, we are transforming the way of our DNA, but you wouldn’t know it the business community engages in elections from much of the rhetoric emanating from to advance our pro-growth priorities. the halls of Congress. In reality, however, Our federal political action committee by a two-to-one majority, Americans say has hosted fundraising events for proexpanding economic growth for everyone manufacturing candidates, is more important than even weighing narrowing the gap in during “Capitalism is part of our DNA, between rich key primary but you wouldn’t know it from much and poor. races. We are As we evaluate of the rhetoric emanating from the educating voters our potential about candidates’ halls of Congress.” leaders, we need positions on to ensure these men manufacturers’ policy priorities. and women embrace and promote the ideals Our Election Center website contains that unite Americans and made our nation educational resources available to all NAM strong: free enterprise, competitiveness, members. individual liberty and equal opportunity. Our political efforts are unambiguously Free enterprise because it will grow nonpartisan because there is no single “prothe private sector and drive innovation. business” party today. There are Republicans Competitiveness because it will expand our and Democrats who support the markets and increase investment. Individual manufacturers’ cause – and then there are liberty because it will free creativity and elements of both parties who are appealing unleash entrepreneurship. And equal to populist sentiments and even touting opportunity because it will strengthen all their opposition to our policy priorities on communities and give every hardworking the campaign trail. We know what happens when this latter group gets to Washington: these individuals’ opposition to commonsense solutions leads to gridlock and the inability for Congress to advance even the most basic measures. They are fueling the dysfunction they rail against to the voters and, in doing so, stifling the economic recovery.

The business community can help end this destructive cycle, and we’ve seen the beginnings of this process by rethinking our approach to electoral politics this year. But no matter how we change course, we’ll continue to

individual a chance to thrive.

The instability and uncertainty we face today is a result of elected officials who are all too willing to allow some of these principles to slip away. Unfortunately, it is becoming rare for elected officials to embrace them in total. And that’s to their detriment because Americans are eager to cast their votes for candidates who embrace these four guiding principles. As manufacturers and members of the business community, we have an obligation to advance these values and identify men and women who will abide by them once in office. To do that, we must get involved in the electoral process – both primary and general elections – now more than ever before. If we are successful, we can renew the faith of the American people in our system of government and our institutions. And, as a result, our government will be working for us again.

Jay Timmons is the president and CEO of the National Association of Manufacturers, the largest industrial trade association in the United States. Visit www.nam.org to learn more.

Visit WMC’s booth at the Manufacturing First Conference October 22, 2014 KI Convention Center, Green Bay www.manufacturingfirst.com Wisconsin Business Voice

WELLNESS Janie Ritter Director of Wisconsin Safety Council

Man Therapy: Stitching up life’s wounds: A New Approach to Men’s Mental Wellness

hey are our fathers, brothers, husbands and uncles. They are our sons, nephews and friends. They are neighbors, co-workers and coaches. These are working-aged men who are dying by suicide every day, and there is little outrage or awareness of the significance of suicide in this group.

Suicide is the second leading cause of death for men aged 25 to 34. But reaction only by dismay and bewilderment as to why men are dying under such despair is no longer an option. Thanks to Man Therapy, an internet-based resource, wellness and actionable solutions have come together under one website, led by an engaging and off-beat fictional therapist named Dr. Rich Mahogany. Although the character is fictional, and rather funny, the intent is very serious: to bring awareness and action to the stigma associated with men’s mental health issues.

Wisconsin Safety Council has partnered with Dane County Safe Communities coalition to promote men’s mental health. Man Therapy uses a unique approach to educate, jumpstart discussion and awareness, and provide resources to men, their families, friends and co-workers on this very important – and rarely discussed – topic. We encourage employers to promote this web-based resource to your employees through newsletters, health fairs and other employee assistance programs. Visit www.mantherapy.org to learn more.

It's a fact depression, anxiety, substance abuse and relationship crises contribute to suicidal thoughts, but a lesser known fact is male depression goes 50 to 65 percent undiagnosed. Men die by suicide at a rate much higher than women, but research articulates it's not that men have a higher rate of depression, rather men resist asking for help, tend not to acknowledge mental health problems or even see the connection to physical wellbeing. In 2007, the Office of Suicide Prevention, the Carson J. Spencer Foundation and Cactus Marketing Communications formed a partnership that specifically addressed how to reach men in distress who may not access traditional mental health services, and determine how to bring these distressed men "back to life." Research,

interviews and focus groups pointed them to a new approach for reaching high-risk men of working age, or Man Therapy.

The website www.ManTherapy.org, is hosted by a fictional therapist named Dr. Rich Mahogany, who uses humor and a straighttalk approach to show working age men that talking about their problems, getting help and fixing it themselves is masculine. Gone is the off-putting mental health jargon, the hand-holding, women embracing photos with help line phone numbers imploring you to call. Man Therapy meets men wherever they are: the website is available for use anonymously and uses quirky humor to engage viewers in a way most don't expect. With links to the National Suicide Prevention Lifeline; it shows testimonials of real everyday men, not just celebrities, taking control of life challenges, and it coaches and empowers men on what to do for themselves and what to do to help their friends in need. Man Therapy is about a man taking action and providing tools for other men to ‘fix themselves’ in ways research says men do best. The website also has a ‘worried about someone’ section aimed at reaching out to assist those who are around men in distress and want to understand how to help. Man Therapy can be a link to getting the help they need not only in a crisis but for fostering positive life style changes that lead to mental health wellness. Talking about it, or even joking about it, as Man Therapy proves, is a promising first step. BV This article is based on Man Therapy: An Innovative Approach to Suicide Prevention for Working Aged Men, by Sally SpencerThomas, Jarrod Hindman, Joe Conrad.

mantherapy.org

Safety Training | October - December 2014

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

www.wisafetycouncil.org

Chapter of

MILWAUKEE AREA

LA CROSSE AREA

October 22

November 13

Coaching the Lift Truck Operator, Train-the-Trainer

Autumn Safety and Health Conference/Expo

SAVE THE DATE April 20-22, 2015 Annual Safety & Health Conference and Expo Wisconsin Dells

December 1-4

OSHA 30hr Voluntary Compliance for General Industry

December 11

How to Handle an OSHA Inspection

MADISON AREA October 1

RCRA Compliance for Hazardous Waste Generators (a.m.) DOT HazMat Transportation Refresher (p.m.)

October 7-8

Worker’s Compensation Law Symposium and Best Practices Conference

October 9

Incident Investigation: A Root Cause Analysis

October 13-16

Safety Management Techniques (SMT)

October 21

Safety Inspections

October 23

Coaching the Lift Truck Operator, Train-the-Trainer

October 28

OSHA Construction Breakfast “Safety as a Business PracticeWhat’s Acceptable Risk?”

November 3

Selection and Proper Use of Fall Arrest Systems

November 6

Crisis Management Conference

November 10

Safety Communication and Training Techniques

December 4

OSHA Construction Breakfast “Falls as a Leading Killer – Prevention”

December 9

Effective Team Safety

FOX VALLEY/GREEN BAY AREA October 14

Job Hazard Analysis

November 5

Supervisor Development: Safety and Health Fundamentals

November 12-13

OSHA 10hr Voluntary Compliance for General Industry

When it comes to networks, bigger is better. Nine out of ten Wisconsin dentists are in a Delta Dental network. So chances are no matter which dentist your employees see, they will save money. The largest networks in the state are just one reason Wisconsin employers come to us for their dental benefits. Making the right decision is easy when the choice is obvious.

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2013-14 Legislativ

HOW THEY VOTED

e are pleased to present these highlights from the 2013-14 Legislative Voting Record, WMCâ&#x20AC;&#x2122;s biennial business issue scorecard for the Wisconsin State Legislature. This report is designed to help the business community see how individual members of the legislature voted on key issues affecting the business climate in Wisconsin. Visit www.wmc.org to view the full report.

SENATE LEGISLATOR

DISTRICT

HOMETOWN

Tim Carpenter (D) Rob Cowles (R) Tim Cullen (D) Alberta Darling (R) Mike Ellis (R) Jon Erpenbach (D) Paul Farrow (R) Scott Fitzgerald (R) Glenn Grothman (R) Rick Gudex (R) Dave Hansen (D) Nikiya Harris (D) Sheila Harsdorf (R) Bob Jauch (D) Neal Kedzie (R) Chris Larson (D) Frank Lasee (R) Julie Lassa (D) Mary Lazich (R) John Lehman (D) Joe Leibham (R) Mark Miller (D) Terry Moulton (R) Luther Olsen (R) Jerry Petrowski (R) Fred Risser (D) Dale Schultz (R) Jennifer Shilling (D) Lena Taylor (D) Tom Tiffany (R) Kathleen Vinehout (D) Leah Vukmir (R) Bob Wirch (D)

SD-3 SD-2 SD-15 SD-8 SD-19 SD-27 SD-33 SD-13 SD-20 SD-18 SD-30 SD-6 SD-10 SD-25 SD-11 SD-7 SD-1 SD-24 SD-28 SD-21 SD-9 SD-16 SD-23 SD-14 SD-29 SD-26 SD-17 SD-32 SD-4 SD-12 SD-31 SD-5 SD-22

Milwaukee Green Bay Janesville River Hills Neenah Middleton Pewaukee Juneau West Bend Fond du Lac Green Bay Milwaukee River Falls Poplar Elkhorn Milwaukee De Pere Stevens Point New Berlin Racine Sheboygan Monona Chippewa Falls Ripon Marathon Madison Richland Center La Crosse Milwaukee Hazelhurst Alma Wauwautosa Pleasant Prairie

LEGISLATOR

DISTRICT

HOMETOWN

Tyler August (R) Joan Ballweg (R) Peter Barca (D) Mandela Barnes (D) Terese Berceau (D) Penny Bernard Schaber (D) Kathy Bernier (R) Janet Bewley (D) Garey Bies (R) Jill Billings (D) Mark Born (R) Ed Brooks (R) Fred Clark (D) Dave Craig (R) Mary Czaja (R) Chris Danou (D) Steve Doyle (D) Mike Endsley (R) Eric Genrich (D) Evan Goyke (D) Gary Hebl (D) Dianne Hesselbein (D) Gordon Hintz (D) Brett Hulsey (D) Rob Hutton (R) Andre Jacque (R)

AD-32 AD-41 AD-64 AD-11 AD-77 AD-57 AD-68 AD-74 AD-1 AD-95 AD-39 AD-50 AD-81 AD-83 AD-35 AD-92 AD-94 AD-26 AD-90 AD-18 AD-46 AD-79 AD-54 AD-78 AD-13 AD-2

Lake Geneva Markesan Kenosha Milwaukee Madison Appleton Chippewa Falls Ashland Sister Bay La Crosse Beaver Dam Reedsburg Baraboo Big Bend Irma Trempealeau Onalaska Sheboygan Green Bay Milwaukee Sun Prairie Middleton Oshkosh Madison Brookfield De Pere

FOR

AGAINST

5 21 5 21 21 5 21 21 21 21 5 5 21 4 21 5 21 5 21 3 21 4 21 20 21 4 14 5 7 20 6 21 5

16 0 15 0 0 16 0 0 0 0 16 16 0 14 0 16 0 16 0 18 0 17 0 0 0 17 7 16 14 0 14 0 16

24 100 25 100 100 24 100 100 100 100 24 24 100 22 100 24 100 24 100 14 100 19 100 100 100 19 67 24 33 100 30 100 24

FOR

AGAINST

30 30 6 3 2 5 28 6 30 5 30 29 6 27 27 6 8 30 7 3 2 4 6 4 30 29

0 0 23 27 28 25 0 24 0 25 0 0 24 3 0 24 22 0 23 27 28 25 21 23 0 1

100 100 21 10 7 17 100 20 100 17 100 100 20 90 100 20 27 100 23 10 7 14 22 15 100 97

ASSEMBLY

ASSEMBLY CONTINUED LEGISLATOR

DISTRICT

HOMETOWN

John Jagler (R) LaTonya Johnson (D) Andy Jorgensen (D) Robb Kahl (D) Chris Kapenga (R) Dean Kaufert (R) Samantha Kerkman (R) Frederick Kessler (D) Steve Kestell (R) Joel Kleefisch (R) John Klenke (R) Dan Knodl (R) Dean Knudson (R) Debra Kolste (D) Dale Kooyenga (R) Bill Kramer (R) Scott Krug (R) Mike Kuglitsch (R) Bob Kulp (R) Tom Larson (R) Dan LeMahieu (R) Amy Loudenbeck (R) Howard Marklein (R) Cory Mason (D) Nick Milroy (D) Dave Murphy (R) Jeffrey Mursau (R) John Murtha (R) Steve Nass (R) Lee Nerison (R) Adam Neylon (R) John Nygren (R) Tod Ohnstad (D) Al Ott (R) Jim Ott (R) Sandy Pasch (D) Kevin Petersen (R) Warren Petryk (R) Sondy Pope (D) Don Pridemore (R) Jon Richards (D) Daniel Riemer (D) Janis Ringhand (D) Keith Ripp (R) Jessie Rodriguez (R) Joe Sanfelippo (R) Melissa Sargent (D) Michael Schraa (R) Erik Severson (R) Katrina Shankland (D) Christine Sinicki (D) Ken Skowronski (R) Stephen Smith (D) John Spiros (R) Jim Steineke (R) Pat Strachota (R) Duey Stroebel (R) Rob Swearingen (R) Gary Tauchen (R) Chris Taylor (D) Jeremy Thiesfeldt (R) Paul Tittl (R) Travis Tranel (R) Robin Vos (R) Amy Sue Vruwink (D) Dana Wachs (D) Thomas Weatherston (R) Chad Weininger (R) Mary Williams (R) Mandy Wright (D) Leon Young (D) JoCasta Zamarripa (D) Josh Zepnick (D)

AD-37 AD-17 AD-43 AD-47 AD-99 AD-55 AD-61 AD-12 AD-27 AD-38 AD-88 AD-24 AD-30 AD-44 AD-14 AD-97 AD-72 AD-84 AD-69 AD-67 AD-59 AD-31 AD-51 AD-66 AD-73 AD-56 AD-36 AD-29 AD-33 AD-96 AD-98 AD-89 AD-65 AD-3 AD-23 AD-10 AD-40 AD-93 AD-80 AD-22 AD-19 AD-7 AD-45 AD-42 AD-21 AD-15 AD-48 AD-53 AD-28 AD-71 AD-20 AD-82 AD-75 AD-86 AD-5 AD-58 AD-60 AD-34 AD-6 AD-76 AD-52 AD-25 AD-49 AD-63 AD-70 AD-91 AD-62 AD-4 AD-87 AD-85 AD-16 AD-8 AD-9

Watertown Milwaukee Fort Atkinson Monona Delafield Neenah Salem Milwaukee Elkhart Lake Oconomowoc Green Bay Germantown Hudson Janesville Brookfield Waukesha Nekoosa New Berlin Stratford Colfax Cascade Clinton Spring Green Racine South Range Greenville Crivitz Baldwin Whitewater Westby Pewaukee Marinette Kenosha Forest Junction Mequon Shorewood Waupaca Eleva Cross Plains Hartford Milwaukee Milwaukee Evansville Lodi Franklin West Allis Madison Oshkosh Star Prairie Stevens Point Milwaukee Franklin Shell Lake Marshfield Kaukauna West Bend Saukville Rhinelander Bonduel Madison Fond du Lac Manitowoc Cuba City Burlington Milladore Eau Claire Racine Green Bay Medford Wausau Milwaukee Milwaukee Milwaukee

FOR

AGAINST

30 3 5 7 28 30 30 3 24 29 26 30 28 7 30 25 30 28 14 28 30 27 28 5 4 30 30 25 26 30 25 30 5 30 30 4 30 30 2 26 5 4 6 27 16 30 3 30 26 4 6 16 11 29 30 28 30 30 30 2 30 30 26 30 12 6 28 30 30 8 4 2 4

0 27 25 23 2 0 0 27 3 0 0 0 0 21 0 0 0 0 0 0 0 0 2 25 25 0 0 0 4 0 0 0 25 0 0 26 0 0 28 0 25 22 23 0 0 0 27 0 1 26 24 0 19 0 0 0 0 0 0 28 0 0 0 0 18 24 0 0 0 22 26 28 26

100 10 17 23 93 100 100 10 89 100 100 100 100 25 100 100 100 100 100 100 100 100 93 17 14 100 100 100 87 100 100 100 17 100 100 13 100 100 7 100 17 15 21 100 100 100 10 100 96 13 20 100 37 100 100 100 100 100 100 7 100 100 100 100 40 20 100 100 100 27 13 7 13

ve Voting Records

BEST AND WORST BILLS OF THE SESSION

10 BEST BILLS THAT DIDN’T RECEIVE A VOTE Assembly Bill 911

Senate Bill 302

Rep. Mary Williams (R) Eliminates the personal property tax.

Sen. Neal Kedzie (R) High capacity well permitting reform.

Senate Bill 654

Assembly Bill 238 / SB 217

Sen. Mary Lazich (R) Campaign finance reform that aligns Wisconsin law with recent court cases affirming the right to corporate free speech.

Rep. Chris Kapenga (R) and Sen. Leah Vukmir (R) Requires a financial impact analysis on the cost of health care mandates before they can be enacted.

Assembly Bill 667 / Senate Bill 508

Assembly Bill 257

Rep. Mark Born (R) and Sen. Glenn Grothman (R) Allows employees to work voluntary overtime without needing a waiver from the one-day of rest in seven law.

Rep. Mark Honadel (R) Stray voltage liability reform that provides a safe harbor for providers that follow state and federal regulations.

Assembly Bill 549

Rep. Dale Kooyenga (R) and Sen. Alberta Darling (R) Expanded opportunities for the creation of charter schools.

Senate Bill 349 Sen. Tom Tiffany (R) Streamlines the regulation of frac sand mining and preserves private property rights.

Assembly Bill 266 / Senate Bill 244 Rep. Andre Jacque (R) and Sen. Glenn Grothman (R) Prevailing wage reform that exempts projects subject to the federal DavisBacon Act.

Senate Bill 84 Sen. Jerry Petrowski (R) Eliminates the estate tax.

10 WORST BILLS THAT DIDN’T RECEIVE A VOTE

Assembly Bill 872 Rep. Chris Taylor (D) A package of tax increases on businesses and individuals that raise the tax burden by an estimated $200 - $300 million per year.

Assembly Bill 354 / Senate Bill 356 Rep. Chris Taylor (D) and Sen. Robert Wirch (D) Regulations trampling of the rights of business to engage in their right to free speech and free association.

Assembly Bill 898 Rep. Cory Mason (D) Requires employers to pay mandatory paid sick leave to their employees at their regular rate of pay, and mandates that employees may accrue up to 72 hours of sick leave each year.

Assembly Bill 894 Rep. Sondy Pope (D) Creates a new per-employee tax collected from employers to fund a paid family medical leave program.

Assembly Bill 342 / Senate Bill 257

Rep. Chris Taylor (D) and Sen. Lena Taylor (D) Prohibits an employer from inquiring about a job applicant’s conviction record prior to a job interview. Also defines asking about conviction records as employment discrimination.

Assembly Bill 755 / Senate Bill 563 Rep. Mandela Barnes (D) and Sen. Dave Hansen (D) Creates a new class of employment discrimination based upon a job applicant’s status of being employed or unemployed.

Senate Bill 660 Sen. Mark Miller (D) Establishes expensive new global warming regulations expected to cost businesses and homeowners billions of dollars, including a 30% renewable energy mandate.

Assembly Bill 868

Rep. Brett Hulsey (D) Creates an extraction tax of $1 per ton for industrial sand, saddling this growing industry with millions of dollars in new taxes to stifle growth.

Assembly Bill 245 / Senate Bill 233 Rep. Sondy Pope (D) and Sen. Lena Taylor (D) Creates new authority for employees to sue businesses for damages, outside of Workers Compensation, for injuries sustained from an act of abuse at work.

Assembly Bill 887 Rep. LaTonya Johnson (D) Creates new tax/fee on employers to pay for half the cost of their employees’ food stamp benefits and BadgerCare Plus healthcare benefits.

View the complete report online: www.wmc.org Wisconsin Business Voice

EDUCATION Chris Reader WMC Director of Health & Human Resources Policy

Quality Education More than Dollars and Cents

key issue lawmakers grapple with every session is K-12 education – how much to invest into classrooms throughout Wisconsin and what reforms are needed to keep our state competitive. Unfortunately, when special interest groups wade into the arena of education funding, the issue is often reduced to a one-dimensional argument of who is willing to spend the most money. Such thinking misses the big picture on education quality.

An example of an argument that misses the mark is an attack made in the current gubernatorial campaign by the liberal group Greater Wisconsin Committee (GWC). In television advertisements earlier this year, GWC attacked Governor Walker, claiming he cut education spending more per pupil than any other governor in America. What they didn’t do, however, is argue that those cuts led to a reduction in education quality. They didn’t make that connection, I presume, because it didn’t happen. Regarding the claim about the cuts, it is true during the first budget under Governor Walker, similar to other states dealing with deficits from the great recession, money for the Department of Public Instruction was cut slightly – from $12.9 billion to $11.9 billion. Spending was then increased in the 2013 budget to $12.5 billion. Throughout that time, K-12 spending remained the second highest priority of state government, second only to the Department of Health Services. If you add allocations for the UW System, the Technical College System and worker

training initiatives, spending on education far surpasses any other area for the state. Wisconsin currently ranks above the national average for per-pupil spending according to the U.S. Census Bureau.

Coupled with the cuts to the Department of Public Education were other reforms and cost saving measures for local governments. All public employees now pay into their retirement accounts and cover a portion of their healthcare insurance premiums. Through 2011 Act 10, elected school boards are empowered, for the first time in generations, to truly control their budgets and hiring practices - and all but one district, the Madison Metropolitan School District, have begun utilizing those tools. A September Wisconsin State Journal article described an emerging teacher marketplace as school districts develop various ways to reward and attract quality teachers. Such competition for quality talent was unheard of before Act 10. In total, the estimated savings for local governments from the Act 10 reforms and health insurance/pension reforms sit at $3 billion. Along with analyzing dollars spent, one must look at other factors when evaluating the quality of education. In September, the U.S. Chamber of Commerce Foundation released the fourth edition of its Leaders & Laggards series, A State-by-State Report Card on K-12 Educational Effectiveness. According to Foundation President John McKernan, Jr., the report “assesses how states are doing in a number of areas critical to ensuring that all students

have access to a quality education and our country can continue to grow economically.”

The report found Wisconsin’s student performance is higher than average, which is consistent with other available comparisons. For instance, Wisconsin earned the second highest average ACT score in 2013. The report also gave Wisconsin an A for postsecondary and workforce readiness, citing the state’s above average high school graduation rate, and a B for international competiveness, with 35 percent of students proficient in mathematics and reading compared to an international standard. On the flip side, the report highlighted areas that need attention. It found academic achievement for low-income and minority students lacking, and parental options, like access to choice and charter schools, needing improvement.

Education policy is not easy and intellectually honest evaluations of education spending and quality outcomes do not fit easily into a political television commercial. As a state, we need to continue talking about high standards and how to give our children every opportunity to succeed and compete with the world. That can’t happen, though, if the focus is purely on dollars and cents, and not coupled with quality outcomes. BV Follow Chris on Twitter @ReaderWMC

BUSINESS WORLD

Steve Benzschawel Business World Director

Mini Business World Inspiring Students, Making a Difference! “I will never forget this experience. It opened my eyes to realize who I am.”

Those words grace a plain notecard above my desk in Madison. A simple message left by one of my students last semester after a Mini Business World program in Rhinelander. Feedback like that is what keeps me going – Business World is making a difference! Engaged, empowered and informed: Those are three goals I strive for every time I run a program with high school students. Engaged in the material I place in their capable hands. Empowered to try new things, take healthy risks and learn that success often follows failure. Informed about the opportunities and challenges that lie at the feet of this Millennial generation. In the past two years, Mini Business World has grown from concept into reality for more than 2,000 high school students and teachers from around Wisconsin.

Held in communities across Wisconsin, these interactive, one-day business conferences challenge high school students to take over an old, outdated company in need of a new image. The students are charged to create a new product, devise a marketing strategy, design a logo and craft a tagline – all in a few hours. Teams of students act as “companies” for the day, with each student joining a department responsible for a project in marketing, communications or finance. In addition to that project, kids hear about careers, resume building, networking and workplace skills. We also spend time discussing

their “digital footprint” – explaining how what they tweet and post on Facebook matters! The feedback we receive from teachers is validation we are headed in the right direction.

“Mini BW has really brought a spark to my business classes. Students love the experience not only because they are learning but because they have fun creating and presenting their mock businesses and collaborating with others. The program opens their eyes to the real world and the opportunities that await. With each year, the interest among students to attend Mini BW continues to grow. As a teacher, I look forward to going every year because I can see my students come alive and apply their knowledge in an authentic environment connected to the concepts I am teaching in the classroom.” – Jamie Allen, Business Education Teacher, Algoma High School We will be traveling the Badger State throughout the school year offering this life-changing program to as many students as we can. Check out our website to see where we are headed, and contact us to bring a Mini BW to your town if your community is not on our list! BV Steve can be reached at steve@wibusinessworld.org or (888) 276-7953.

Celebrate Manufacturing Month in October wimanufacturingmonth.org WMC will once again be promoting manufacturing throughout the month of October. The point of Manufacturing Month is to expose students, parents, educators, legislators, and others to the career opportunities available in the manufacturing industry. Visit www.wimanufacturingmonth.org for up-to-date information on tours and events happening throughout the month.

Contact Susan Nyffenegger, snyffenegger@wmc.org or (608) 258-3400, for more information or to add your event to the list. 32

Celebrate Manufacturing Month this October By Reggie Newson

ince 2012, Governor Walker has proclaimed October as Manufacturing Month in conjunction with Manufacturing Day, which is the first Friday in October and is celebrated nationally. During Manufacturing Month, Wisconsin manufacturing businesses, technical colleges and other partners open their doors to students and members of the public. This includes tours, open houses and other events designed to showcase the great career opportunities available to individuals in manufacturing. In June, the Wisconsin Department of Workforce Development, the Wisconsin Economic Development Corporation, Wisconsin Department of Revenue, Wisconsin Department of Public Instruction, Wisconsin Technical College System, Wisconsin Manufacturers & Commerce, the Wisconsin Manufacturing Extension Partnership, University of Wisconsin-Stout and other stakeholders kicked off the planning process for the 2014 celebration of Manufacturing Month this October.

Much has been written about the misconceptions that surround working within the manufacturing sector of our economy. Images of dirty factories and munitions work continue to persist despite efforts to convey more realistic images of today's manufacturing careers: These are high-tech, rewarding and challenging jobs that offer good pay with opportunities to advance. We are committed to dispelling the myths and introduce Wisconsin workers – both the workforce of today and future generations – to opportunities in manufacturing, including careers they may not have considered in the past.

average pay for all Wisconsin private-sector workers. In addition, manufacturing contributes more than $53 billion to Wisconsin’s economic output. Over 16 percent of our state's workforce is directly employed in manufacturing, outpacing the national average of 9 percent. Manufacturing in Wisconsin today is a robust and dynamic industry, driving the creation of family-supporting jobs, inspiring innovation and advancing the state's economy.

Under Governor Walker's leadership, we are working hard to ensure Wisconsin manufacturers and workers can access the resources they need to be successful. During the current state biennial budget cycle, the Governor has invested more than $100 million in workforce training initiatives throughout the state in a variety of sectors, including manufacturing.

Whether through apprenticeship, school-to-work programs, technical college courses or other training programs, hard-working Wisconsinites “The average pay for a manufacturing are choosing to experience the reality worker in Wisconsin is $53,000 per year – of today's manufacturing careers – and more than $10,000 per year higher than the they are thriving.

average pay for all Wisconsin private-sector workers.

We know that by visiting a modern manufacturing company students will invariably find clean, safe, state-of-the-art production facilities with workers operating sophisticated, computer-controlled equipment. These are family-supporting jobs that offer many advantages, including the satisfaction that comes from work that is engaging and requires a team approach to problem solving and success. What makes manufacturing appealing for many is that the path to rewarding careers can begin with a variety of training and education options. Rather than a four-year degree from a liberal arts college or university, an individual can earn a two-year degree from a technical college, or a certificate with short-term training.

As we fulfill our commitment to develop Wisconsin's workforce, we are urging parents, students and educators to visit a local manufacturing facility and see firsthand what today's manufacturing industry offers. As part of this we are encouraging manufacturing employers to take the opportunity to showcase their operations during Manufacturing Month – or any month of the year.

Visit www.wimanufacturingmonth.org for more details or to schedule a tour or other event. As an employer, this is a great time to share your success story and demonstrate the many opportunities manufacturing offers Wisconsin's workforce today and in the years to come. BV Reggie Newson is Secretary of the Wisconsin Department of Workforce Development.

The average pay for a manufacturing worker in Wisconsin is $53,000 per year – more than $10,000 per year higher than the

Wisconsin Business Voice

MANUFACTURING LEADERSHIP DRIVES GROWTH AND BUILDS BUSINESS IN WISCONSIN. A robust business climate, diversified industry growth and continuous innovation in high technology makes Wisconsin the place to be for manufacturers. It’s why we consistently rank among the nation’s top states in manufacturing. Wisconsin businesses have access to world-class technology research and development resources, which ensures that manufacturers here can tap the latest advanced manufacturing technologies quickly and cost effectively. We can better meet the needs of manufacturers now and in the future through the highly skilled and specialized workforce that comes from our strong technical college system. Plus, many companies in Wisconsin and those outside of the state gain a competitive advantage with access to the breadth and depth of our Tier I, Tier II and Tier III suppliers. Our enterprising start-to-finish supply chain integration reflects advanced thinking and delivers cost effectiveness that positions Wisconsin as a global leader in meeting the needs of OEMs. We show our commitment to manufacturing with bold policies and incentives, including the introduction of the Wisconsin Manufacturing and Agriculture Tax Credit, which virtually eliminates the tax on income for manufacturing activity in Wisconsin. To learn more about the programs designed to support your company’s manufacturing growth plans In Wisconsin®, call 855-INWIBIZ (toll free) or visit Manufacturing.InWisconsin.com.

In Wisconsin® is a registered trademark of Wisconsin Economic Development Corporation.

MADE IN WISCONSIN …the autumn edition

Dura-Fibre, LLC

352 Sixth Street Menasha, WI 54952 (920) 969-3600 Year Established: 1930 www.durafibre.com

Dura-Fibre in Menasha manufactures paperboard packaging solutions and heavy weight folding carton materials. Dura-Fibre specializes in laminating, die cutting and printing of paperboard and other substrates. Some of their products include heavy weight folding carton substrates, specialty packaging, totes, furniture backs, slip sheets, tier sheets and packaging for industrial applications. Dura-Fibre has been active in the use of recycled paperboard for over half a century. Their commitment to waste reduction in all aspects of their business is a top priority. Beyond the reduction of production-generated scrap, the recycling of packaging supplies and the use of energy-efficient lighting are just a few of their areas of focus. DuraWrap is one of Dura-Fibre's innovative protective packaging products that offers efficient storage, safe and easy assembly and durability. Used as a wooden crate replacement, Dura-Wrap is ideal for packaging and transit of high-value devices, rollers, shafts, extrusions, metal, piping, tubing, windows, doors, vehicle components and any other items that require customized protection.

Columbus Chemical Industries As a specialty chemical company, Columbus Chemical Industries, (CCI), focuses on the needs of its customers by providing customized, engineered and high-purity products for industries as diverse as semiconductor, medical device, energy, biotech and industrial manufacturing. CCI fulfills its vision of “Delivering Solutions through Chemistry” by partnering with customers to understand specific needs, developing unique chemical solutions and producing products under stringent quality assurance standards. CCI’s team is very proud of the recognition they regularly receive for employee safety, environmentally conscious practices and active involvement in community events. Since its founding in Columbus, Wisconsin in the 1970’s, CCI has achieved significant growth, expanded numerous times including an operation in Phoenix, AZ and is pleased to be recognized as a world class supplier of high purity chemical products and custom blended solutions to Fortune 500 companies around the world!

N4335 Temkin Road Columbus, WI 53925 (920) 623-2140 Year Established: 1978 www.columbuschemical.com

Palermo's Pizza

3301 W Canal Street Milwaukee, WI 53233 (414) 455-0347 Year Established: 1964 www.palermospizza.com

Pizza seems to be a weekly staple in practically everyone’s diet, but did you know that a favorite frozen pizza brands is manufactured right here in Wisconsin? Palermo's Pizza is a family business built on uniting and serving others through our Italian culture of hospitality. The company was started by Sicilian immigrants Gaspare "Jack" and Zina Fallucca who opened an Italian bakery on Milwaukee’s east side in 1964. "Let's Eat'za," their company rally-cry, embraces their desire to bring people and families together through the simple act of sharing a meal. Palermo’s features a variety of different pizzas such as classic, thin crust, flatbread and even breakfast pizza! Palermo's frozen pizzas are available in grocery stores and big box retailers in almost every state, and online through the company’s web site.

Klement's Sausage Company, Inc. Most of the Badger state seems to be in agreement on this: There is no better food to accompany our state’s wonderful cheese than good sausage. Klement’s Sausage Company in Milwaukee makes fresh, pre-cooked, summer, breakfast and ground sausage as well as snack sticks, deli meat, and ring bologna and loops. The local flavor of Klement's savory sausage has been enjoyed for generations, at major league ballparks, neighborhood grillouts, and family gatherings for holiday feasts and everyday dinners. Klement's proudly sponsors many local and Midwestern professional sports teams and community events. Included are the Milwaukee Brewers (Miller Park), as well as the Milwaukee County Zoo. Klement's also proudly recognizes the sponsorship of The Klement's Famous Racing Sausages™ featured at Miller Park during Milwaukee Brewers home games.

207 E Lincoln Avenue Milwaukee, WI 53207 (414) 744-2330 Year Established: 1956 www.klements.com

ISSUE ADVOCACY Jim Pugh Treasurer, WMC Issues Mobilization Council, Inc.

Talk to Your Employees, They’ll Respond A

ll too often, public employers shy away from talking about policy matters with their employees. That’s the wrong approach. Employees want to know what you think, and research has found that employers are one of the most trusted sources of information for employees when making decisions that affect their families’ futures. As a business owner, you have a First Amendment Right to discuss with your employees the important public policy issues that affect your company, your state and your nation. There are some restrictions under state law limiting your ability to tell workers for whom to vote, or which political party to support. And you cannot hint that the business will close or wages will be cut based on the outcome of an election. But you can provide basic, common sense information about how issues affect your business. You can also

explain how those issues affect your company's bottom line and, in turn, your ability to provide better benefits to your employees. In other words, your workers need to know higher taxes, regulation and runaway lawsuits drive-up costs directly affect the company's profits and losses.

WMC provides you with tools to have conversations about policy issues and how public officials voted on business issues. For example, our website contains a complete scorecard detailing how your lawmakers voted on business issues in the most recent legislative session. Feel free to print and share the scorecard with your workers at a staff meeting – or email it to them with a note about how the issues affect your business and your community, including your employees and their families. Urge your employees to review how their own legislators voted. They will likely find there is a wide range of support for the business

agenda at the State Capitol.

There’s a link to the complete legislative voting record on our homepage, www.wmc. org, and there’s an abbreviated version on page 28 in this issue of Wisconsin Business Voice. Use WMC as a resource to learn more about issues and share the details with your employees. The best employee public policy program is a long, sustained educational program by your company. Let the resources from WMC help you educate your co-workers. Visit www.wmc.org/ policycenter for talking points, videos and more. BV

Save the Date

Focus on Manufacturing Breakfast Friday, February 27, 2014 The Pfister Hotel, Milwaukee

www.wmc.org/focus 36

Industrial Waste Disposal Services USED OIL, PARTS CLEANING AND INDUSTRIAL WASTE DISPOSAL SERVICES WMC has developed a strategic partnership with Heritage-Crystal Clean (HCC), the 2nd largest parts cleaning and industrial waste service provider in the United States.

WMC OFFERS MEMBERS EXCLUSIVE DISCOUNTS ON THE SERVICES NEEDED TO STAY COMPETITIVE IN TODAY’S GLOBAL ECONOMY

Heritage-Crystal Clean, a WMC member and affinity partner, focuses on the environmental service needs of manufacturers. They also offer an array of services to other industries with unique waste streams including healthcare facilities, printing companies and companies with print shops, and the plastics industry. The company boasts an outstanding record of environmental compliance.

WMC MEMBER PRICING PROGRAM Heritage-Crystal Clean offers the following WMC member-only pricing on parts cleaning, used oil and containerized waste services: Minimum 25% discount on all services Larger volume discounts available  No set-up or installation fees ($63 savings)  No waste profile fees ($75-$425 savings on every new waste stream)  Significant cost reduction to WMC members  

HERITAGE-CRYSTAL CLEAN OFFERS FACILITY ENVIRONMENTAL EVALUATION SERVICES Heritage-Crystal Clean has a program designed to lessen the burdens that accompany environmental activities. Environmental Solutions Partners (ESP) is a unique approach to evaluate waste generation processes and management practices in an effort to provide members with a sole-source environmental vendor utilizing the latest technology/management methods available. ESP, consisting of HCC environmental experts, performs (at no cost to WMC members) a complete facility evaluation to identify needs and/or assure that each member is using best practices for environmental activity.

Contact Dean Popovich at Heritage-Crystal Clean at 877-938-7948 or dean.popovich@crystal-clean.com for detailed product and savings information.

Focusing on the environmental service needs of manufacturers

First Term By Representative Dianne Hesselbein (D-79th District)

hen asked to reflect upon my first term as Wisconsinâ&#x20AC;&#x2122;s 79th Assembly Representative, my initial thoughts turned to the privilege of serving the wonderful people of western Dane County. The 79th District is a diverse mixture of urban and rural, industry and agriculture, and includes all or part of the cities of Middleton and Verona, the villages of Cross Plains and Waunakee, and the towns of Berry, Burke, Middleton, Springfield, Verona, Vienna, Westport and Windsor. I entered the Assembly anticipating significant changes. With so many new representatives seated in the Assembly, I believed the partisan hostility could be diluted and replaced by bipartisan cooperation on the historic challenges our legislators face. An example of longstanding problems worthy of correction is state district gerrymandering.

Almost a Wisconsin tradition, representatives of the minority party protest the unjust and unfair rules allowing the majority party to redraw district boundaries to protect their political power. Over time, party political majorities changed back and forth but the gerrymandering process continued unchanged. For the most part, and regrettably, freshmen representatives have not sought cooperation, but have generally embraced the destructive partisanship which hampers fresh thinking and the true reform needed to improve the quality of democracy at the state level. The redistricting process continues unchanged, ripe with secret meetings and gerrymandered outcomes. Despite some disappointments, I reflect proudly on the major accomplishments and highlights of my first term. I was pleased to bridge partisan barriers and successfully pass legislation benefiting our deserving veterans and military families. My first bill ensures priority registration for our warriors at university and technical colleges, an important change that helps veterans complete their education before their benefits expire. I was also pleased to support and ensure a second veteran measure passed at the end of session bringing about overdue facility improvements at the King Veterans Home. I reflect and think about the complexity and requirements of

legislative duties. Listening and learning was integral to my responsibilities as a member of the Assembly Colleges and Universities Committee, the Education Committee, Natural Resources and Sporting Heritage Committee, the Tourism Committee, the Veterans Committee and the Select Committee on Common Core Standards. I marvel at how much effort is done by so many for our common good. Conversations with constituents on important issues always leave me impressed. I found individual business owners in the 79th Assembly District take education seriously and most believe the Common Core educational State Standards are good for their business in Wisconsin. Many area business leaders expressed it was easier to recruit and retain people because the public education system is strong in our state. I am pleased WMC was outspoken and in favor of the Common Core standards.

As I wrote at the beginning, the 79th District holds a mix of industry and professions. It is always a pleasure to meet with our interesting and interested citizens. The best part of being a representative is meeting my constituents at the Capitol, in the district at listening sessions, or at community events. But it is not just about meeting adults. Meeting school groups provides me with the opportunity to encourage students to participate and become good citizens and contributors to their communities. Visiting individual businesses in Dane County teaches me about their successes and challenges, and how they provide our much-needed jobs. I am grateful for all the public employees in my district as well, and I appreciate their dedication to keeping our communities safe, in the best shape where we live, work and raise our families. I look forward to continuing my role representing the shared principles and values of the 79th District in the coming years. BV

Representative Hesselbein represents Wisconsinâ&#x20AC;&#x2122;s 79th Assembly District which includes parts of Dane County.

Reflections By Rep. Jessie Rodriguez (R-21st District)

eople often ask if my first year in the State Assembly was what I expected. The answer is yes and no.

As a newly elected State Representative, I knew I would create laws, debate policy, vote on bills, do interviews, field constituent calls and occasionally write an op-ed. Yet, there are experiences that affect you in ways you don’t fully expect.

Anyone who has taken a tour of the State Capitol would be hardpressed not to notice the building’s historic features. The marble walls and columns in the Assembly chamber, the oil mural in the Supreme Court room of the signing of the U.S. Constitution, the original “Great Wisconsin” table in the Governor’s Conference Room, and of course the giant dome of the rotunda are all physical reminders of a great legacy and tradition established by generations past. What keeps elected officials occupied today are dealing with current problems, passing new laws and winning the next election. We should also think about our American legacy – the very principles of democracy those marble walls, oil murals and conference tables represent.

A little over two centuries ago, thirteen American colonies were bullied by England’s overbearing tax and anti-trade policies. It’s not that England didn’t hear the colonial cries, it’s that they didn’t care. So, the colonies sent their delegates, chosen by members of local legislatures, to attend an unprecedented meeting called the Continental Congress. It was the first time in American history the colonies stood together to resist the Crown.

The bar they set was admittedly high, and it continues to cast a large shadow for legislators in the modern era. With this heritage in mind, I find my choices and actions – which at times are difficult – have more clarity and meaning. It’s comforting to know those who walked the path before us made the hard choices so new legislators such as myself can make a difference.

My first three months in session wasn’t a watershed period on par with the founding of our nation, but I believe we passed a number of important reforms that at least keep with the colonial spirit of a limited and responsive government.

Republicans in the State Assembly and Senate passed significant legislation that will provide income and property tax relief for families and businesses, including the elimination of the income tax on state manufacturers. In doing so, we are returning $500 million surplus to Wisconsin taxpayers, who are better at spending their money than government. More specifically, I authored and sponsored reforms that promote transparency in education, opportunities for economic development and tax exemptions for small businesses. State Senator Leah Vukmir (R-Wauwatosa) and I authored legislation that raised the bar of accountability for private schools seeking to enter the school choice program. Our legislation creates stricter accounting and accreditation standards to protect taxpayers (especially parents) from fly-by-night schools that receive tax dollars despite losing their accreditation status.

I co-authored legislation with State Representative Joe Sanfelippo (R-15th District) that clarified the Milwaukee lakeshore boundary, making it easier for pubic and private development on arguably the state’s most valuable piece of property. And finally, I sponsored legislation that broadens personal property tax exemptions for companies in the construction, mining and forestry trades.

All in all, my first legislative session was quite a ride. I look forward to tackling the biennial budget next year and continuing to be a good steward of your taxpayer dollars. BV Representative Rodriguez represents Wisconsin’s 21st Assembly District which includes parts of Franklin, Oak Creek and South Milwaukee in Milwaukee County.

Wisconsin Business Voice

CHAMBER CORNER

The First Future Wisconsin Community By Karen Szyman

or almost 100 years, The Chamber of Manitowoc County has been the largest and most successful business organization in Manitowoc County. This year I am proud to represent Manitowoc County as the President of Wisconsin Chamber of Commerce Executives and as a member of the WMC Board of Directors.

In May of 2013, WMC Foundation President Jim Morgan introduced “The Future Wisconsin Project” at the WMC Board meeting. I knew immediately this would be an initiative that would take root – a PROCLAIMED FUTURE strategic plan to address WISCONSIN COMMUNITIES the needs of the state, a • Beaver Dam Area vision for our future. A few Chamber of Commerce months later, Jim presented • Greater Brookfield Area the project at our annual Chamber of Commerce Board of Director Strategic planning session and it was • Fond du Lac Area unanimous, The Chamber of Association of Commerce Manitowoc County was in • Fox Cities Chamber of support of the project. Commerce and Industry

• Green Bay Area Chamber of Commerce • Forward Janesville, Inc. • La Crosse Area Chamber of Commerce • The Chamber of Manitowoc County • Marshfield Area Chamber of Commerce & Industry • Monroe Chamber of Commerce • The Chamber for Superior & Douglas County • Waukesha County Business Alliance, Inc. • Waupaca Area Chamber of Commerce, Inc. • Wausau Region Chamber of Commerce • West Bend Area Chamber of Commerce

The six Competitive Quality Indicators that have been established – Talent Development, Attraction and Retention; Business Competiveness; Global Engagement; Government Effectiveness; Life Quality and Entrepreneurial Spirit are areas many of the Chambers throughout the state have been working on as individual organizations. We all have barriers hampering the growth within our communities – regulations, taxes, shortage of skilled workers and our young talent moving out of our communities. But our strengths are larger; we have a state full of innovators, entrepreneurs and hard workers, but most of all, loyal, caring and friendly people making our quality of life superior.

The efforts of WMC in orchestrating the collaborative efforts of business, education and government leaders participating in this dialogue is a great step to having a successful plan for the future of Wisconsin.

The Chamber of Manitowoc County was proud to sign-on, representing the first Future Wisconsin Community to be involved in the Future Wisconsin Project. We all have the same goal – to make Wisconsin the most competitive state in the nation. 2016 will mark the 100-year anniversary of The Chamber of Manitowoc County and we look forward to celebrating the successes of our area and the great Badger State in which we live. BV Karen Szyman is Executive Director of The Chamber of Manitowoc County and serves on the Wisconsin Chamber of Commerce Executives and the WMC Board of Directors.

The

Future Wisconsin Project

CHAMBER FUN FACT Poniatowski, Wisconsin Half way between the Greenwich Meridian and the International Dateline and half way between the Equator and the North Pole

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