Wisconsin Business Voice April 2015

April 2015: Issue 14

Official magazine of Wisconsin’s Chamber

Defending Freedom Wisconsin Defense Contracts Page 20

Inside: Wisconsin Manufacturer of the Year Award Winners p. 3 Technology, Safety Features and OSHA – Everyone Needs to Get on the Same Page p. 28 Detachable Legislative Directory p.35

WISCONSIN

BUSINESS VOICE

In this issue…

From the Editor

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This year marks the 27th Annual Wisconsin Manufacturer of the Year award program. Seven worthy companies were awarded at a black-tie ceremony in Milwaukee in February.

I have attended the Awards Dinner every year since starting with WMC in 2004 and I am still always in awe of the quality of companies and the caliber of people who call Wisconsin home.

Each winner is encouraged to say a few words to the room filled with their peers, and in many cases, competitors. Some company leaders’ remarks are short and sweet, some are detailed and specific – but all are passionate and genuine. There’s usually a tear or two, and often a shout-out to parents who may have started the company that the son or daughter has grown into an empire, employing hundreds and sometimes thousands of people.

The entire evening is inspiring – that more than 500 people would get all dressed up (yes, tuxes and evening gowns!) in the middle of winter and travel to Milwaukee to eagerly await the announcements of which companies shall receive the coveted awards. It is a celebration of all that makes Wisconsin the great state it is today – hard work, dedication, loyalty, community, family.

This is just one of many reasons I am so proud to work for WMC, our state chamber of commerce, where we represent manufacturers and all the companies in Wisconsin. You are the backbone of our economy – you are the reason our families thrive here. So thank you. Keep up the good work.

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Charting Progress in Closing the Skills Gap

KURT BAUER, WMC

Wisconsin Manufacturer of the Year Award Winners

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CHRIS READER, WMC

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JIM MORGAN, WMC FOUNDATION

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Right to Work Myth Busting Simple, Just Not Easy

With Right to Work Legislation Done, What’s Next?

SCOTT MANLEY, WMC

Wisconsin’s International Business Driver 10

MIKE SHOYS, WMC Five Reasons Right to Work Got Done 14

CHARLIE SYKES Workplace of Tomorrow: A Millennial 17 The Perspective

STEVE BENZSCHAWEL, WMC/WISCONSIN BUSINESS WORLD

Safety Features and OSHA – 18 Technology, Everyone Needs to Get on the Same Page

JANIE RITTER, WMC/WISCONSIN SAFETY COUNCIL

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DEFENDING WISCONSIN’S FREEDOM: DEFENSE CONTRACTORS IN WISCONSIN

School District of Beloit’s Career Technical 26 The Education Program

STEVE MCNEAL

Who is Mikey the Manufacturer?

28 BEN BEMIS Editor, Wisconsin Business Voice kpettersen@wmc.org

Cover details: The first U.S. Navy Littoral Combat Ship, USS Freedom (LCS 1), the inaugural ship in an entirely new class of U.S. Navy surface warships, is seen conducting a speed run during Builders Trials. The ship was built by Marinette Marine and is designed for littoral, or close-to-shore, operations and to provide access and dominance in coastal-water areas. (Marinette, WI, Aug. 4, 2008 - Photo provided courtesy Lockheed Martin /Released)

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)

EPA Proposes Most Expensive Air Rule Ever 30 ERIC BOTT, WMC Ethanol Blend Wall: How a Federal Policy 32 The Threatens a Key Wisconsin Industry and the Contents of Your Garage

Budget Presents Opportunity for Tax Reform 34

JASON CULOTTA, WMC

35 Removable Legislative Directory State Budget Process 38

SEN. ERPENBACH (D-MIDDLETON) AND REP. NYGREN (R-MARINETTE)

Wisconsin Goes to Washington 40

SHANNON FULL, FOX CITIES CHAMBER OF COMMERCE

Charting Progress in Closing the Skills Gap Kurt R. Bauer, WMC President/CEO

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nrollment in manufacturingrelated courses at Wisconsin’s 16 technical colleges has increased 26 percent since 2012. That doesn’t mean the skills gap has been closed or that Wisconsin manufacturers now have a reliable pipeline of workers to replace the retiring Baby Boomers. But it does mean that we are making progress by working together to expose young people to manufacturing career options and by better aligning education with in-demand jobs.

But while we should be pleased with our progress, we know there is a lot more work to be done to close the skills gap in manufacturing, let alone the expanding worker shortage in other fields like information technology, accounting, healthcare, teaching, etc.

Sixty-four percent of WMC’s member CEOs said in our winter economic survey that they are having trouble finding workers, up from 53 percent last summer. That is likely why when asked in the same survey “what is the top business concern facing your company” 26 percent said “labor availability.”

The sad irony is as the economy improves, demand for workers rises. But if businesses can’t find the workers, the economy can’t improve, at least not to its full potential.

Credit for the increased awareness of and interest in manufacturing-related careers goes to many people and Case in point, Ashley Furniture recently announced it would entities, including leaders in Wisconsin’s K-12 districts forgo a planned expansion in Western Wisconsin in part (see column by former Beloit Public Schools because of a lack of workers. The Superintendent Steve McNeal unemployment rate on page 26), the Wisconsin “The sad irony is that as the economy state’s is just under 5 percent, the Technical College System, lowest since 2008. But it is improves, demand for workers rises.

But the Wisconsin Department 4.5 percent in Trempealeau of Workforce Development, if businesses can’t find the workers, the County where Ashley is the Wisconsin Economic located.

Development Corporation and economy can’t improve…” local chambers of commerce.

Ashley’s decision makes me wonder which is the bigger challenge for WMC deserves some of the credit as well.

Wisconsin’s economy, creating new jobs or filling existing Since 2011, WMC has hosted three workforce summits ones?

Given that Wisconsin’s unemployment rate is still too to bring together businesspeople, government officials high and the labor participation rate is at or near a record and educators. Those summits have helped improve low, there should be enough supply of workers to meet the communication and cooperation between manufacturers demand for jobs.

But clearly that isn’t the case, at least in and K-12 districts and technical colleges. It also led to some parts of the state and in some professions.

October being designated as Manufacturing Month in order to celebrate Wisconsin’s rich manufacturing past WMC will continue to work on addressing this issue via The and promote its promising future. Another important goal Future Wisconsin Project, which has identified workforce of Manufacturing Month is to expose young people to and business climate as its top two priorities. In fact, at the how things are made and the careers available in advanced first annual Future Wisconsin Economic Summit, held last manufacturing, including what kind of training is required to December in Milwaukee, WMC committed to developing pursue them. a better jobs projection mechanism for the state. The goal is to help young people make career and thus, education and Of course not all people enrolling in manufacturing-related training choices based on good data of what jobs will be courses are recent high school graduates. Many are displaced available when they enter the workforce. BV workers looking for new opportunities. They have heard that Wisconsin manufacturers have good paying jobs available to people who want to work, are drug free, interested in learning new skills and, in some cases, are willing to relocate.

Follow Kurt on Twitter @Kurt_R_Bauer

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Honoring Manufacturing Excellence in Wisconsin Lt. Governor Rebecca Kleefisch addressed the sold-out crowd.

This February, seven Wisconsin companies were awarded a prestigious Wisconsin Manufacturer of the Year Award, competing against 40 total nominees. The winners were announced at a black tie banquet at The Pfister Hotel in Milwaukee.

Celebrating its 27th year, the MOTY program recognizes manufacturers of all sizes and industries for their contributions to the great state of Wisconsin. The Wisconsin Manufacturer of the Year award winners were selected by an independent panel of judges representing industry, education, and the public sector.

MOTY Winners 2014 Special Award Winners

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The hosts of the evening were Jim Morgan, President, WMC Foundation; Tod Linstroth, Managing Partner, Michael Best & Friedrich; and Tim Christen, CEO, Baker Tilly Virchow Krause.

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Marketplace Opportunity Special Award

Employee Development & Commitment Special Award

Workforce Development Grand Award

SmallCategory Grand Award

2014 Grand Award Winners

Medium Category Grand Award

This award competition is sponsored by

Large Category Grand Award

Mega Category Grand Award

www.wimoty.com

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RIGHT TO WORK Chris Reader WMC Director of Health & Human Resources Policy

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Right to Work Myth Busting

n March 9, Governor Walker signed 2015 Act 1, making Wisconsin the 25th Right to Work state in the Nation. Even though the law is now on the books, there are some misconceptions that I want to clarify. These misconceptions are due in no small part to the large campaign of misdirection and deception waged by unions and lobbyists while the bill was being considered by lawmakers. WMC countered the union propaganda by talking to lawmakers one-on-one and we helped lawmakers see the truth about the bill.

Before addressing the myths, let me explain what Act 1 actually does. It’s really very simple – it protects workers from being fired for not joining a union or refusing to pay union dues. What that means is each employee is now allowed to decide whether or not they find value in the labor union and want to join, rather than being forced into paying dues to hold a job. That’s it. It doesn’t eliminate existing unions, it doesn’t void existing labor contracts, it doesn’t prohibit collective bargaining and it doesn’t stop a worker from joining a union.

union or not. The union training argument is premised on the belief that if workers no longer find value in the union and stop paying dues, the union would have less money to pay for training. While an interesting theory, union dues don’t pay for training. Employers do. Need proof ? The IRS 990 tax forms filed by the Operating Engineers and Carpenters Union state that employers pay for the training.

Myth 3. Safety. Tied to worker training, the unions often say safety in the workplace suffers in Right to Work states. While this might be convincing rhetoric, it’s not reality. Like worker training, workplace safety is of utmost importance to employers, not only because it’s right, but also because it doesn’t make sense to be unsafe and have expensive worker’s compensation claims.

Workplace injuries don’t happen because employees are forced to pay union dues or not – rather, a state’s safety record is largely dependent on the industrial makeup of that state’s economy.

Myth 4. Middle Class. Personalizing the issue, union bosses claim Right to Work laws are anti-middle class and drive down wages.

Reviewing objective data shows a different story. Right to Work WMC countered the union states created 2.1 million more jobs from 2004-2013, saw wages grow 6.9 percent more than in forced-union states propaganda by talking to and workers had, when adjusted for cost of living, $2,000 lawmakers one on one. more in disposable income.

Myth 1. Free-Riders.

Opponents of Right to Work use this myth often. Despite how often they repeat the claim, however, it’s completely untrue. What they claim is that unions are forced to provide representation to all employees; therefore people who stop paying dues receive the union’s supposed benefits without having to pay their fair share. What the unions don’t say is that the unions can decide to be members-only organizations, which would free them of the supposed free-rider issue. Think of this argument outside of the union arena – organizations like WMC and local chambers of commerce have to prove their worth to their members every year or members will drop out and not pay their dues. With Right to Work, unions now have to convince their members there is value to membership.

Myth 2. Worker Training. Probably the second most repeated claim is Right to Work will cause worker training to suffer. This claim is equally illogical. To accept this argument is to say 88 percent of the private workforce that is not unionized in Wisconsin is untrained and unsafe. That’s simply not true. Employers know the value of having highly trained workers who operate safely – that’s why employers invest in training whether their workforce is

Myth 5. Anti-Union. Seeing how hard the unions fight to maintain their grip on compulsory union dues, one would surmise Right to Work states are hostile to union membership. That’s certainly the picture painted by union lobbyists. Looking at the objective data though, a different story emerges. In the last four years, union membership has increased in Right to Work states by 57,000 workers; conversely, forced-union states lost 248,000 union members. Another interesting point is union leaders earn about $20,000 less and union dues are about 10 percent less in Right to Work states.

Despite the attempts by labor unions to misdirect on the issue, lawmakers saw through these myths and others and passed Right to Work for Wisconsin. While not a silver bullet for our economy, Right to Work is a large step forward in making Wisconsin competitive for companies looking to grow and expand, and continues the trend in recent years of making Wisconsin the most competitive state in which to do business. BV

Follow Chris on Twitter @ReaderWMC Wisconsin Business Voice

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BUSINESS & EDUCATION Jim Morgan WMC Foundation President

Simple, Just Not Easy

“W

alk a mile in my shoes” is a quote that ends in a variety of different ways, but each one makes roughly the same point… we often see the world through the lens we want to see it through. We want the world to match our view, and will often go through some massive rationalization to make it fit.

Case in point: I had back-to-back meetings the other day, the first with a group of business leaders and the second with a group of school leaders. I was struck by the discussions. Both were frustrated by politicians who wouldn’t listen, a media that was biased against them and a public that didn’t understand their challenges.

Guess which of the following stories came from business and which from education:

“Every time there is a single outlying problem, all of us are tagged with it… and the government feels they need to do something about it. When I see the headline, I know what is coming next and I just cringe. The generalization that one bad example represents an entire group of people is an insult to all of us who do our job well every day.”

Watch Jim explain more about his column: www.wmc.org/bv

So, which group said what? All five were brought up in both meetings! Read them again from either perspective.

As I have mentioned in this column before, I am from a mixed marriage. I work for WMC, the state’s chamber of commerce and leading business association often referred to as the 800 pound gorilla in the public policy arena. My wife is a teacher and a member of the local and state union. For 30 years we have challenged each other’s facts and dismantled each other’s myths. But much more often than the disagreements that have entertained our children for years, comes an understanding of just how desperately the people we represent need the group the other one represents.

It’s not rocket science. The number one issue facing businesses today is a shortage of talent. And it is only going to get worse due to our state’s demographics. Which group is in Which group is in the best position to the best position to help ensure explain the skill set needed to succeed in every student has the ability to today’s ever-changing world and provide the be career, college and community ready?

“All we are looking for is a little consistency. Every time new laws are passed, or in some cases just introduced, everyone has to scramble. We just start connection between what is being learned making progress toward a set The students attending school of requirements and the rules of today and what will be earned tomorrow? today are nothing like my classmates the game are changed. Certainty from when I grew up. They face issues is critical to us getting the job done and I never dreamed of, master technology that didn’t even exist for political gamesmanship makes it very difficult.” me and do it in a much more diverse school climate that brings “As we are made out to be the bad guy, many think it will just another level of challenges. Which group is in the best position drive families somewhere else in the state. The real concern is to explain the skill set needed to succeed in today’s ever-changing we will drive them right out of Wisconsin.” world and provide the connection between what is being learned today and what will be earned tomorrow?

“We cannot run things like we did in 1950. Our facility, and the way we operate, looks nothing like it did two generations ago.

Entertainment Executive Tom Freston is credited with saying, We are being held to a much higher level of accountability, with “Innovation is taking two things that already exist and putting more regulations, and we are doing it under tighter budgets.” them together in a new way.” It is that simple with business and education. BV “If people from the outside would just come in and see us in action, they would be blown away by the innovation, creativity and problem-solving that goes on every day.”

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LEGISLATIVE PRIORITIES Scott Manley WMC Vice President of Government Relations

With Right to Work Legislation Done, What’s Next?

M WMC: Driving the Train on Right any said it couldn’t be done, that it would never happen.

For the twenty years I’ve been involved in Wisconsin policymaking, the notion of Wisconsin becoming a Right to Work state was the pinnacle of political impossibility.

But we did it.

With the help of bold leaders like Senate Majority Leader Scott Fitzgerald and Assembly Speaker Robin Vos, Wisconsin became the 25th Right to Work state when Governor Walker signed Act 1 into law last month.

While WMC led the charge from a lobbying and advocacy standpoint, employers and employees owe a debt of gratitude to each of the 17 Republican Senators and 63 Republican Representatives who supported the bill’s passage.

The importance of enacting Right to Work in Wisconsin cannot be overstated. We are now back on the map for businesses looking to expand or invest in our state. We join the ranks of 24 other Right to Work

states that have grown jobs and wages twice as fast as forced-union states over the last 10 years.

Wisconsin is now better positioned to compete for manufacturing jobs with neighboring Right to Work states like Michigan, Indiana and Iowa.

Governor Scott Walker correctly described Right to Work as another tool for Wisconsin business to compete and grow jobs.

Along with the 2011 Manufacturers’ Tax Credit, the machinery and equipment tax exemption and many recent legal reforms, Right to Work allows Wisconsin to make a compelling case that there is no better place in America to be a manufacturer.

Yet there is more work to be done.

Wisconsin’s transformation into the most competitive state in the nation just took an enormous leap forward with Right to Work, but the transformation remains incomplete. Having the Governor sign a historic reform like Right to Work as the first new law in a two-year legislation session necessarily begs the question: What’s next?

WMC’s Scott Manley and Chris Reader testified before an Assembly Committee hearing on Right to Work legislation.

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Tax Reform. Despite commendable efforts to reduce the tax burden by more than $2 billion over the last four years, Wisconsin remains among the 10 highest-taxed states in the country.

to Work

WMC Received Credit from a Number of Key Sources: “The Wisconsin Manufacturers & Commerce, the statewide chamber of commerce, Kurt Bauer, Scott (Manley) and Chris (Reader), the team, You guys have done a tremendous job on this so thank you for your leadership.” - Gov. Scott Walker at the Right to Work Bill signing Monday, March 9, 2015 “This train is being driven by Wisconsin Manufacturers & Commerce“ - Milwaukee Journal Sentinel, February 23, 2015 “WMC played absolutely essential role on pushing Right to Work. This would not be happening without groups like WMC. When the politicians didn’t want to lead, WMC rallied support for Right to Work” - Charlie Sykes, WTMJ-AM on air, Friday, March 6, 2015 When President Obama attacked Governor Walker, WMC delivered the business message: “Obama’s statement drew a rebuttal from Wisconsin Manufacturers & Commerce, one of the chief proponents of the Right to Work legislation. In a statement, WMC President Kurt Bauer said “It’s disappointing that President Obama has come out against a policy that gives workers freedom of choice in the workplace.

The fact is, right to work states grow jobs and wages twice as fast as forced-union states do.

By contrast, the President supports a wage policy that the Congressional Budget Office said will likely kill 500,000 American jobs. Gov. Walker remains focused on providing freedom and economic opportunity to workers.” Wisconsin Radio Network, March 10, 2015 “The Next Right to Work Victory: A poll released in January by Wisconsin Manufacturers & Commerce found that 69 percent of likely voters support right to work…” - The Wall Street Journal, February 20, 2015

Repealing Governor Doyle’s 2009 income tax hike and repealing the tax on personal property are two opportunities for significant reform.

Regulatory Reform. Providing the Governor with the authority to veto agency rules was an important step toward comprehensive regulatory reform. Lawmakers must take the next step toward accountability by requiring agencies to obtain the approval of the Legislature by vote of both the Senate and Assembly to approve rules costing $25 million or more.

Family Medical Leave Act Reform.

Wisconsin remains one of a few states with our own FMLA law in addition to the federal regulation. The state FMLA conflicts with the federal law, adds complexity and confusion for Wisconsin employers and is another legal liability facing businesses.

The Legislature should conform the state FMLA to the federal law, thereby easing the regulatory burden facing business.

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Worker’s Compensation Reform. Medical costs in Wisconsin’s worker’s compensation program continue to be significantly higher than those of many other states. These higher costs place Wisconsin employers at a competitive disadvantage by increasing the cost of doing business here. Lawmakers should enact meaningful medical cost containment in worker’s compensation to help place our employers on a level playing field.

There are many other important issues the Legislature will confront over the course of the next two years. Fortunately, the Senate and Assembly are controlled by bold reformminded legislators who are continually looking for ways to make Wisconsin stronger and more capable from an economic growth and development perspective.

Passing Right to Work was an incredible start to the legislative session. But it was only a beginning, and there is much more to come. BV

Follow Scott on Twitter @ManleyWMC

WMC was on hand to witness the signing of 2015 Act 1, the Right to Work law, March 9 at Badger Meter in Milwaukee. Left to Right: WMC’s Kurt Bauer, Lt. Gov. Rebecca Kleefisch, Gov. Walker, Badger Meter’s Rich Meeusen, WMC’s Scott Manley and Chris Reader.

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EXPORTING Mike Shoys WMC Senior Vice President

Wisconsin's International Business Driver

By Mike Shoys

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he Wisconsin Economic Development Corporation (WEDC) is the primary governmental engine driving foreign trade in Wisconsin. Formed during Gov. Walker’s first term in office, WEDC is a public-private partnership with the overall responsibility for economic development in the state. The International Business Development Another key element in WEDC’s (IBD) department is international business agenda is responsible for foreign foreign direct investment. Since 2003, trade development there have been 103 foreign direct including promoting investment projects totaling $7.8 Wisconsin exports billion in U.S. Capital expenditures and and foreign direct creating 13,761 jobs in Wisconsin. The investment.

Foreign Direct Investment

primary industrial sectors for foreign direct investment in Wisconsin are industrial machinery and chemical projects. Major inflows of investment dollars include automotive and alternative and renewable energy projects. The department views foreign direct investment as having longterm benefit – often 18-36 months or more. Their primary focus is business attraction, and not Capital Investment, in five key clusters – manufacturing, food, biotechnology, energy, power and controls, and water technology.

The department’s key foreign direct investment strategies are to increase the awareness of Wisconsin as a primary FDI destination, to develop an FDI multiplier network, to connect with foreign trade and investment agencies and industrial organizations, to fill the FDI pipeline with foreign owned companies located in Wisconsin and to convert opportunities to win projects.

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I recently spoke with Katy Sinnott, vice president of international business development for WEDC, who said the mission of the IBD is to enhance Wisconsin’s global competitiveness by accelerating exports and promoting Wisconsin as a foreign direct investment destination. The IBD believes bilateral trade and export growth are key elements in the growth of Wisconsin business. IBD’s tagline: We help Wisconsin businesses grow overseas so they can grow back IN Wisconsin, is indicative of their mission.

Overall, IBD’s strategy is to (1) apply a

personal touch when dealing with Wisconsin businesses, (2) make their services the more scalable for all Wisconsin businesses, and (3) engage the University of Wisconsin and other educational systems with international trade and encourage technical schools to provide more resources.

More specifically, the IBD intends to accelerate Wisconsin exports in three ways:

• Identify export opportunities for Wisconsin. WEDC wants to be more proactive in identifying export opportunities for Wisconsin. They plan to focus efforts on countries whose needs match Wisconsin strengths, for instance food manufacturing or machinery production. Their intent is to leverage established Wisconsin industry clusters such as The Water Counsel.

• Increase export knowledge and export strategic planning. The department intends to reach out to various partners including technical schools, the UW System, the department’s regional account managers and commercial account managers, and the private sector to educate businesses on exporting and export planning through programs such as boardroom briefs, oneon-one meetings, and peer-to-peer mentoring programs. An important element of their plan is to offer specific training programs around export strategy planning and design.

ExporTech, which is highlighted in a separate article in this issue of Business Voice, is a program WEDC co-hosts with WMEP, the U.S. Commercial Service and WMC. IBD hopes to expand the ExporTech program with an extended program modeled after the Virginia “Valet” program, which extends the department’s export assistant services and creates a pipeline of companies for the department to engage in trade ventures and grant opportunities.

The IBD also plans to leverage its team of over 50 authorized trade representative to inform companies about export options.

Authorized trade reps are the department’s feet on the ground in foreign markets, who perform industry, product and market assessments, provide partner searches and facilitate meetings in their markets.

• Provide exporting acceleration tools. The third element of IBD’s accelerate export program is to provide specific tools to companies just getting started or expanding their export ventures. These include trade ventures/missions, grants to support the export process such as grants for trade show attendance, and keeping abreast of and disseminating

information regarding export rules and regulations and compliance strategies.

Wisconsin businesses just getting started in international trade face a number of barriers. Small companies who see little growth in domestic markets may consider exporting but are intimidated by the prospect. They may have a fear of the unknown, think they are too small or don’t know where to start.

WEDC can alleviate those fears and provide guidance on getting started. Bad experience in initial foreign business ventures and tariffs are also barriers to trade.

The U.S. is working on the Trans Pacific Partnership to reduce tariffs with 12 nations. This is designed to level the playing field in terms of bilateral trade – currently 55 percent of Wisconsin exports go to the current TPP partners.

The WEDC Board of Directors sets annual Key Performance Indicators to measure the department’s success in achieving its goals. The primary KPIs for this fiscal year include providing ExporTech services to 40 companies, providing financial assistance to 100 businesses to help them expand their exporting efforts and providing technical assistance to 400 companies.

Most Wisconsin business, particularly in the manufacturing sectors will, over the next 10-20 years, see their primary growth opportunities in foreign markets. Companies who would not have dreamed of exporting their products 10 years ago may Sinnott not survive without a viable export strategy. WEDC, under the able leadership of Secy.

Reed Hall and Katy Sinnott and her team at IBD, are an important tool for Wisconsin business to create and implement successful export strategies. BV

ExporTech™: Developing Strategies for International Markets ExporTech™ is national export assistance program that helps companies enter or expand in global markets. Jointly offered by the National Institute of Standards and Technology’s Manufacturing Extension Partnership and the U.S. Export Assistance Centers of the U.S. Department of Commerce, ExporTech applies a structured export strategy development process consisting of three all-day sessions over a three month period that assists four to eight companies accelerate growth through exporting. It is the only national program where each company develops a written export plan which is vetted by a panel of experts upon completion. ExporTech efficiently connects companies with a wide range of world-class experts that help navigate the export sales process.

The result is that companies rapidly expand global sales and save countless hours of effort.

In Wisconsin, ExporTech is managed by the Wisconsin Manufacturing Extension Partnership with assistance from the Wisconsin Economic Development Corporation and is sponsored by WMC and the U.S. Commercial Service in Milwaukee.

111

$770,000

Programs completed

Average sales increase/retention

$400,000

$50,000

Total program sales (new/retained) to date

Average cost and investment

603

Companies participated

Add Wisconsin numbers under the national numbers above.

For more information regarding ExporTech programs in Wisconsin, contact Roxanne Baumann, WMEP, (262) 422-8279, baumann@wmep.org

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13

GUEST INSIGHT

Five Reasons Right to Work Got Done

By Charlie Sykes

C

onventional wisdom would suggest that what just happened was impossible: Wisconsin is now the 25th Right to Work state in the country.

This happened despite reluctance of the sitting governor, the opposition of the mainstream media and an impressive lobbying effort by unions that included putting prominent Republicans on the payroll. So what happened?

The victory of Right to Work suggests the political playing field has shifted in at least five significant ways: The legislature not only has a Republican majority, it has a conservative majority that is not content to rest on its laurels.

Those conservatives expect to get things done and are not content with reliving their victory on Act 10. The rank and file legislators ran for office as reformers and asked themselves “If not now, then when?” This will be reflected in a host of issues over the next few months.

Wisconsin – free market ideas now have an outlet and an audience.

The business community is willing to get into the trenches.

WMC’s willingness to engage in vigorous issue advocacy has changed the game. Let’s be honest here – at one time the business community was politically risk-averse, often unwilling to mix it up with the media or the entrenched progressives in state government. As a result, there were occasional victories but they tended to be modest; and there were often stinging defeats.

Business faced two formidable obstacles: (1) Wisconsin had a long tradition of progressivism, and (2) the principles of the free market are often hard to explain to an electorate acclimated to the politics of entitlements, taxes, and regulation. So pro-business advocacy was both politically risky and a heavy lift.

But groups like WMC have realized it is not enough to win elections – they must also engage in the debate on ideas. And that is precisely what happened with Right to Work.

The governor may set the agenda, but he no longer has a monopoly. The Right to Work issue demonstrated how the center of gravity has shifted in With WMC in the lead (and its role cannot be state politics. In his first term, overstated), free market advocates made the case “With WMC in the lead (and Gov. Scott Walker drove the that workers should be able to choose whether or its role cannot be overstated), free agenda and the legislature not to join a union. That message was disseminated market advocates made the case that through the new media, percolated up from the generally followed his lead.

But this legislation would grass roots, and it emboldened conservatives in the workers should be able to choose not have passed without the legislature. whether or not to join a union.” decision by Senate Majority In the end, the unionist left not only lost the vote, they Leader Scott Fitzgerald (R-Juneau) and lost the argument.

Assembly Speaker Robin Vos (R-Rochester) to take leadership This is an important point – the legislative action would not have roles and call an extraordinary session. The move paid off – been possible without public opinion. Polls consistently showed only a single Republican senator (and no Republican state strong majorities favored worker freedom. All that was needed representatives) voted against the bill. was for the case to be made, support mobilized and for legislators Old interest group politics don’t have the same clout. to have the guts to act on it. As a result the inconceivable became Earlier this year a former Republican speaker spoke to the reality. new Republican caucus, urging them not to pursue Right There’s a lesson in there somewhere. BV to Work because it would alienate some of the unions who had contributed to their campaigns. In the past, this pay-toCharlie Sykes hosts the political commentary and play argument might have worked. But on issues involving analysis show Midday with Charlie Sykes on WTMJ fundamental principles like worker freedom, it no longer does. radio. His work can also be found on Right The new media has transformed the landscape. If it had been up to the mainstream media, Right to Work would not only not have passed, it would not even have been discussed. But the mainstream media is no longer the gatekeeper for ideas or issues. Through a variety of new media – talk radio, Wisconsin Reporter, the MacIver Institute, Media Trackers and Right

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Wisconsin. Sykes is the author of seven books including most recently A Nation of Moochers — America’s addiction to getting something for nothing.

Business Day in Madison

Business Day in Madison 2015 was a rousing success bringing together 1,200 business leaders from across the state. Attendees heard insightful and interesting commentary from Governor Scott Walker, John Stossel, KT McFarland, Ed Goeas, Senator Ron Johnson, Attorney General Brad Schimel, Head Coach Paul Chryst and Radio Host Charlie Sykes. Thank you to our sponsors and partners who help to make this annual event a success.

Charlie Sykes, Media Personality and Business Day in Madison Emcee; Ed Goeas, The Tarrance Group; and Brig. Gen. Mark E. Anderson, Deputy Adjutant General, Wisconsin Army National Guard.

KT McFarland, Fox News National Security Analyst, spoke at the event.

Keynote Speaker John Stossel, host of Fox Business Network’s Stossel.

Gov. Walker addressed attendees at lunch.

UW-Madison Head Football Coach Paul Chryst with WMC’s President/CEO Kurt Bauer.

A sold-out crowd of more than 1,200 business leaders attended the event.

Save the date for Business Day 2016 - Wednesday February 24!

MADE IN WISCONSIN Adaptive Micro Systems (dba Adaptive Displays)

7840 North 86th Street Milwaukee, WI 53224 414.357.2020 Year Established: 1978 www.adaptivedisplays.com

If you’ve been to the Milwaukee County Zoo recently, you’ve likely seen the large full color LED sign at the entrance.

This sign was provided by Milwaukee’s own Adaptive Micro Systems. Adaptive’s complete line of full color and single color LED outdoor and indoor displays are the preferred choice for any business needing dynamic displays from commercial advertising to integrated transportation information systems. By designing, manufacturing and testing all products in their state of the art manufacturing plant, Adaptive Micro Systems is able to take complete ownership of their products, services and support. They have LED signage systems installed in all 50 states, Puerto Rico and 19 other countries.

Kohler Co. You probably know Kohler Co. for the products they manufacture which are of the utmost importance for our daily use: toilets, showers, sinks and faucets. Kohler continues to enhance these everyday products by keeping traditional elegance while developing new models that conserve water and offer advanced features like touchless operation. You may not realize that this diverse company also makes engines, generators, furniture and tile, plus operates world-renowned hospitality and golf resorts. Today, with more than 50 manufacturing locations on six continents, more than 30,000 Kohler associates present the company’s concept of gracious living in every corner of the world. Kohler’s manufacturing divisions in Sheboygan County also work closely with community and education partners to support continued development of the state’s skilled trades workforce. Proud to call Wisconsin home, Kohler has a rich tradition and are ever-challenging the status quo.

444 Highland Drive Kohler, WI 53044 920.457.4441 Year Established: 1873 www.kohler.com

Keg Products, Inc.

704 North 10th Avenue Grafton, WI 53024 800.232.5347 Established: 1994 www.kegaque.com

With temperatures rising and the sun setting later in the day many Badger State residents have started to grill out again!

Keg Products Incorporated, a manufacturer of barbeque equipment, was founded in Milwaukee by the McGourthy Family. Their signature product, the Keg-a-Que won the Governor Award in 1995, was licensed by the NFL in 1997, and today proudly recognizes over half a million Keg-a-Quers from around the world! While known for their good looks, every Keg-a-Que Grill is designed for maximum cooking performance. From the portable models to the back yard big boys, their versatile grills cook clean, even and fast. This patented grill has been a top seller on the Home Shopping Network for years. With its compact size, sturdy frame, large cooking surface and transportability, it rivals any grill in its class. And when they say it “Cooks as Good as it Looks,” they mean it!

MILLENNIAL GENERATION Steve Benzschawel Director of Business World

The Workplace of Tomorrow: A Millennial Perspective

T

he Millennials are coming!

You’ve probably seen us around, but we might have been staring at our phones and missed you. Born between 1980 and 2000, we number close to 80 million and outnumber any generation that came before us, even the mighty Baby Boomers. We grew up with adoring, doting parents during a technological revolution – what a combination!

Millennials can be tough to define because there are 80 million of us and we were all raised to think we are special and unique. To our frustration, the same generation who taught us the sky is the limit and to set our goals high now labels us unrealistic, entitled and demanding.

Regardless of your opinions on this generation, one fact is undeniably clear: Millennials will soon be the overwhelming majority in the workplace – 75 percent by 2025. In the past, management would wring their hands trying to get Millennials to assimilate to corporate culture. Today, successful managers are reinventing their culture to cater to the next generation of employees. Managers who understand what Millennials want and expect from their employer will be best positioned to attract and retain talent. So how are Millennials influencing today’s workplace?

Flexible Work-Life Balance

My grandfather was a grocer and his store was his identity. His work defined him and he, like many of his generation, lived to work, usually arriving first and going home last. So where older generations found their identity through their work, Millennials largely define ourselves by the life we lead outside the office.

While Millennials are motivated by compensation, we also desire the freedom and flexibility to enjoy our life away from work.

Millennials take pride in their careers, but live for their family, friends and lifestyle their occupation affords them.

Millennials favor results-only work environments which hold employees accountable for results, not the particular hours they keep at the office. Millennials are so connected that many see less importance in being the first in the office in the morning because

they are available 24/7, responding to emails from bed at 1:00 a.m.

Millennial parents will seek a supportive work culture that allows fathers and mothers to thrive in both parenting and their careers.

Managers who find untraditional ways to allow employees to work when and where they are at their most productive will attract Millennial talent.

Team Sports Generation

Millennials are the team sports generation. Since early childhood, we have always been on a team and are accustomed to collaborating on projects. We feel most comfortable working in small groups to accomplish tasks, and that will carry over into the corporate world. Growing up, we always had a coach looking over our shoulder telling us, “you’re doing great, keep it up!” and we don’t expect that to change once we trade our backpacks for briefcases.

Innovative companies have realized Millennials crave mentoring and coaching from more tenured employees – many have created intergenerational relationships to help Millennials see potential growth and development opportunities. Millennials, in turn, can help older employees improve the way they utilize technology and social networks to become more productive.

Social Conscience & Opportunities to Give Back

Millennials are the most connected generation in history and grew up with the internet. This gave them an unparalleled view of the world around them and instilled a strong sense of social conscience and sustainability. They are acutely aware of their employer’s impact on society and take this into account when deciding where to work.

Many companies have increased support for employee’s favorite causes, whether through release time to volunteering or with matching funds for contributions. Millennials will respond strongly to opportunities to use their professional skills to make a difference to a worthy cause.

Millennials will soon dominate the workforce. We are the most educated, most connected and most diverse generation and soon we will be in charge. Millennials rejoice, our time is now! BV Steve shares this information with corporate offices around the state. Contact him at steve@wibusinessworld.com for more information.

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 for your support throughout 2015

Wisconsin Business Voice

17

SAFETY EXCELLENCE Janie Ritter Director of Wisconsin Safety Council

Technology, Safety Features and OSHA Everyone Needs to Get on the Same Page

T

here are numerous reasons why manufacturing companies invest in upgrading their equipment - from increasing output to decreasing operating costs, or increasing the safety of employees to introducing state-of-the-art technology into its processes.

Technology and equipment design is advancing at an everincreasing rate, and these advancements have changed the face of manufacturing to what we see today in advanced manufacturing settings in Wisconsin, the U.S., and all around the globe. New, innovative ways of processing and handling products are introduced every year, allowing operations to run smoother, faster, more efficiently and most importantly, safer for employees. What is also new is the architects of these state-of-the-art machines are now incorporating safety features directly into the engineering of their equipment design. As with other products, these technologically advanced pieces of equipment may be manufactured in other areas of the world like Europe and Asia which are subject to their own country’s set of safety procedures, guidelines and processes.

While U.S. manufacturers often look to purchase new equipment from U.S. suppliers, oftentimes companies acquire their machinery from a foreign source. It would seem logical that when a piece of equipment is purchased and shipped to another country, the product’s safety and operations certification falls on the manufacturer to ensure compliance with the destination country.

That may not be the case. Investing in a new piece of equipment often comes with a price tag ranging in the hundreds of thousands of dollars to several million, or more. You don’t want to find out after-the-fact that your quarter of a million dollar new piece of equipment doesn’t meet OSHA safety standards, resulting in lost production time, increased operating costs, inefficiencies or OSHA citations.

With the Occupational Safety and Health Act of 1970, Congress created the Occupational Safety and Health Administration (OSHA) to assure safe and healthful working conditions for working men and women by setting and enforcing standards and by providing training, outreach, education and assistance. Housed

18

within the U.S. Department of Labor, OSHA has the responsibility to regulate private workplace safety by inspecting workplaces, issuing citations and penalties for violations, and requires employers to take corrective action on those violations. U.S. employers have a responsibility to provide a safe workplace for their employees.

However, with any government entity change is not immediate, it takes time. Regulations that were drafted and adopted in 1970 have been slowly adapted along the way with the changes in workplace settings and with the changes in technology. More and more, work that had been performed using manual labor is now performed by robotics and computer-generated processes.

It is extremely important for companies to be proactive when purchasing equipment used in a manufacturing setting. Here are a few suggestions:

• Include your safety director, engineers and others in the equipment purchasing process to ensure U.S. OSHA requirements are considered and met.

• Invite your local area OSHA office representative to review your potential equipment purchase specs and request comments and certification that the new piece of equipment meets OSHA standards.

• Choose a supplier who is well versed in U.S. OSHA requirements to further ensure compliance with required regulations.

• Consider including a clause in your purchase order that the manufacturer certifies the product is compliant with OSHA regulations.

The world and technology are ever-changing. Working with your local OSHA office is a great place to start to ensure you are meeting all the necessary safety requirements and keeping your most valuable asset – your employees – safe. After all, the ultimate goal is to have all employees return home safely to their families every day. BV Follow WSC on Twitter @WISafetyCouncil

Chapter of

Safety Training | April - July 2015 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

MILWAUKEE AREA SAFETY TRAINING May 20

Supervisor Development: Safety & Health Fundamentals

June 17

Job Safety Analysis ( JSA)

MADISON AREA SAFETY TRAINING May 7

First Aid/CPR/AED Recertification

May 8

OSHA Construction Breakfast “Hiring a Crane”

May 18-21

Safety Training Methods (STM)

June 8

Handling an OSHA Inspection

June 14

Hazard Communication, Train-the-Trainer

July 21

Safety Inspections

WISCONSIN DELLS AREA SAFETY TRAINING April 20-22

73rd Annual Safety & Health Conference and Expo More than 50 educational sessions aimed at safety and health professionals

April 20

Coaching the Lift Truck Operator, Train-the-Trainer Effective Team Safety Ergonomics: Managing for Results Incident Investigation: Root Cause Analysis 2015 NFPA 70-E Update Developing an Effective Behavior-Based Safety Process 8-Hour Comprehensive Course on Rigging in the Workplace Interpretation of Industrial Hygiene Sampling

April 20-21

OSHA 10-Hour Voluntary Compliance Course for General Industry

FOX VALLEY/GREEN BAY AREA SAFETY TRAINING June 11

Incident Investigation: A Root Cause Analysis

Register Today www.wisafetycouncil.org

DEFENDING

Military vehicle manufactured by Oshkosh Defense.

G FREEDOM

Wisconsin Style

Defense Contractors in Wisconsin

By Mark Crawford

I

t’s often been said the best offense is a strong defense – this is true for Wisconsin, where a strong defensecontracting sector is essential for a robust, competitive state economy that scores big wins on the economic playing field. And, when the defense falters (for example, $2 billion in funding cuts to truck manufacturer Oshkosh Corporation by the Department of Defense over the last five years according to the Wisconsin Procurement Institute), the negative impacts to supply chains reverberate throughout Wisconsin.

Defense spending, in many cases, parallels what is happening on the world stage. With the end of the wars in Iraq and Afghanistan, the Department of Defense has less need for military vehicles, replacement parts and other services. “This, however, can change quickly if there are foreign policy developments involving ISIS or other hot spots around the globe,” says Tom Still, president of the Wisconsin Technology Council.

Despite the downturn, there are still plenty of bright spots within Wisconsin’s defense-contracting industry.

For example, Marinette Marine Corporation is a primary subcontractor to Lockheed Martin on its littoral combat ship project with the U.S. Navy, which has brought other manufacturing opportunities to Wisconsin. Snap-On Inc. in Kenosha received a $37.7-million contract in 2014 to provide aviation tool kits for the U.S. military. A number of other companies are well-positioned to take advantage of the shift in Department of Defense spending away from heavy equipment and toward homeland security initiatives, cybersecurity and insurance and medical services for military personnel. Wisconsin companies are also starting to win more high-level, federal work in defense-related sectors such as aerospace – for example, Weldall

Manufacturing, a metal fabricator in Waukesha, recently secured an $11-million contract with NASA to build special test equipment for space launch systems.

Diverse Defense Sectors

According to the Wisconsin Procurement Institute,Wisconsin has about 2,500 discrete defense suppliers – original equipment manufacturers (OEMs) and Tier-1 suppliers in transportation equipment (for example, Oshkosh Corporation), maritime transportation (Marinette Marine), controls and automation (Rockwell Automation and Johnson Controls), safety equipment (Grainger), propulsion “A major concern beyond and power solutions (DRS Technologies), and Wisconsin’s borders is the many others including impact of sequestration at foundries, fabricated metal, component the federal level.” manufacturing, defense software and medical.

In Fiscal Year 2013, defense spending constituted 2.3 percent of Wisconsin’s GDP – $6.5 billion per year – about 1.4 percent of total defense spending in the country. Top earners were: • Oshkosh Corporation – $5.1 billion • National Presto Industries – $126.3 million • General Electric – $71.1 million • Wisconsin Physicians Service Insurance Corporation – $33.9 million • Schutt Industries – $25.2 million • Snap-On – $22.1 million • TRC Global Solutions – $21.1 million • WHR Group – $19.4 million • ORC Industries – $18.6 million • Tower Industries – $18.3 million

Wisconsin Business Voice

21

About 93 percent of defense contracts in Wisconsin are for equipment and supplies – the remaining seven percent invests in research and development, construction, technology and a variety of business services. Yet this small slice of the defense business is rapidly growing, creating new opportunities for Wisconsin companies to expand into these expanding sectors. These include electronics, medical equipment and supplies, software development, network engineering, water technology, health care and other consulting services. For example, Madison-based WPS Corporation (insurance, pensions) and United Health Group/Logistics Health (healthcare) received a combined total of about $475 million in federal funding in 2014, a large portion of which goes toward Department of Veterans Affairs programs.

Other diverse defense contractors include Goodwill Industries (food services), Federal Prison Industries (clothing), Johnsonville Sausage (meat), Datex-Ohmeda (medical and dental supplies), Lunda Construction (concrete), Metaltek (copper foundries) and the Industries for the Blind (carbon paper and inked ribbon manufacturing).

pyrotechnics and other critical defense components. This is made possible because neutrons, unlike x-rays, are able to deeply penetrate high-density materials such as shell casings and other metallic objects and interact strongly with lower-density explosive materials such as carbon or hydrogen, making inspection a much safer operation.

The Department of Defense funds have been extremely critical for the growth of PNL. “We have been able to leverage the Army grants to develop our core technology and product line,” says Radel. “The $3-million contract is allowing us to build our first commercial neutron radiography system.”

The device will be delivered to the U.S. Army, where it will be used to improve the safety of its ammunition. Not only have the military contracts helped pay for technology and manufacturing

Not Everyone Can Play Defense

Winning a defense contract isn’t easy. The Department of Defense expects full compliance with strict eligibility and reporting requirements; successful bidders must also have a high degree of patience and good communication skills. Although the application process can seem daunting, winning a defense contract makes a huge difference in the growth of a company. Phoenix Nuclear Laboratories in Monona, for example, has received a total of $5.5 million from the Department of Defense (including a $3-million contract in 2014) to build an advanced neutron radiography unit.

“Winning a defense contract is difficult, particularly in recent years as federal spending has decreased,” says Ross Radel, president of Phoenix Nuclear Laboratories (PNL). “Our awards were mostly granted through the Small Business Innovation Research (SBIR) program, which specifically seeks innovative ideas from small businesses. Without this program, it would be much more challenging for small businesses like PNL to compete for defense funding. Even so, the application process is competitive and requires significant amounts of work from the applicant.”

Similar to x-ray imaging, neutron radiography is a nondestructive inspection technique. The U.S. Army wants to use PNL’s neutron imaging system for the nondestructive inspection of munitions,

Inside the cockpit of a Gulfstream jet. The company outfits cabins, paints the exteriors and installs avionics equipment upgrades in part at the Appleton completion center.

capability development, the funding has helped the company raise private equity for expanding the business. “The military funding has helped PNL grow from 10 to 30 people in the past three years,” says Radel. “It has also supported the local economy because we purchase a large percentage of the hardware for our devices from Wisconsin companies.”

Moving Forward

Cuts in federal defense spending have reduced the number of defense contracts in Wisconsin. The State of Wisconsin and the Wisconsin Economic Development Corporation (WEDC) are working hard to mitigate the impact of these cuts, as well as expand future support for the defense industry in the state.

The East Central Wisconsin Regional Planning Commission applied for, and was awarded, a $1.9-million Defense Industry Adjustment Grant from the Department of Defense. Partners in administering the grant include the City of Oshkosh and the University of Wisconsin-Oshkosh.

“The overall project goal is to assist workers and manufacturers affected by the Oshkosh Corporation layoffs, while implementing a strategy to diversify the state’s defense industry and build on its comparative advantages,” says Lee Swindall, vice president of business and industry development for WEDC. The littoral combat ship Pre-Commissioning Unit (PCU) USS Milwaukee (LCS 5) is prepared for its christening ceremony Dec. 18, 2011 at the Marinette Marine Corporation shipyard. (U.S. Navy photo by Joe Mancini courtesy of Marinette Marine Corporation/Released)

22

In addition, WEDC created a Special Projects Loan Fund to provide loans for projects that might not otherwise qualify for traditional financing. This fund was created specifically in response to the cutbacks at Oshkosh Corporation. Although any company

can apply for the loans, the program was created with Oshkosh Corporation suppliers – especially parts suppliers, metal fabricators and machine shops – in mind. Loan amounts range from $50,000 to $250,000 and require a 50 percent match by the recipient.

In 2014, Wisconsin ranked 32nd among all states for federal procurement dollars (which includes defense contracts). Even worse, Wisconsin receives only 1.4 percent of the total defense spending awarded to contractors every year in the U.S. The good news is Wisconsin has the research and development and manufacturing talent to win more defense contracts, especially in emerging sectors. The long-time success of companies like Oshkosh Corporation and Marinette Marine has prepared their supply chains to be competitive for defense and federal work. “We have an extremely strong base of manufacturers that have served as subcontractors to major prime contractors,” says John Rogers, board chair of the Wisconsin Procurement Institute and CEO of Capstone National Partners, a public-affairs firm that is working with WEDC and UW-Extension to complete a Wisconsin military bases study that assesses their economic impacts. “These in-state subcontractors are highly qualified and have acquired the skill sets needed to go after other significant federal work.”

Plans are underway at the Wisconsin Procurement Institute to craft a robust strategy to increase defense spending in general across the state. This will include extra attention on the emerging services sector “if we want to compete for and win more federal dollars,” says Swindall. “Key areas include energy and power control, water technology and cybersecurity. Cybersecurity is one of the fastest-growing segments of Department of Defense spending. With our University of Wisconsin strengths in computer engineering, network engineering and software development, Wisconsin is ideally situated to compete in this field.”

Radel adds that a strong University of Wisconsin system will help keep the Wisconsin defense industry strong. “The technologies and, more importantly, the exceptional engineers and scientists

Sailors man the rails of USS Freedom (LCS 1) during a commissioning ceremony at Veterans Park in Milwaukee. Wisconsin's Marinette Marine manufactured the Freedom. (U.S. Navy official photo by Michael F Miller/released)

coming out of the UW will help create new growth opportunities for Wisconsin companies like Phoenix Nuclear Labs,” he says.

“Moreover, additional support from the WEDC, Madison Development Corporation, and other organizations will help small businesses grow and compete for increased defense contracts.”

Finally, a major concern beyond Wisconsin’s borders is the impact of sequestration at the federal level. In terms of Department of Defense spending, being able to avert full sequestration cuts in Fiscal Years 2014 and 2015 gave the Pentagon what it needed most to manage its finances – certainty, time and flexibility, notes Rogers. “Fiscal Year 2016 is another story,” he adds. “Full cuts are supposed to be in place. In addition to the president’s budget, which discarded the sequestration cuts, we have an intra-party war between Republican fiscal conservatives and the defense hawks. Of course, all this will impact Department of Defense manufacturing dollars in Wisconsin – let’s just say that the final chapter of the defense budget has yet to be written.” BV Crawford is a Madison-based freelance writer.

M

ore than 332,000 Wisconsinites served in the military during World War II. But far more people than that served their country by providing the U.S. and its allies with all manner of war materiel.

lockers, trucks, tank parts, howitzers, cots, mattresses and propellers.

A review of data from the old War Production Board, provided by the Library of Congress, shows the extent by which Wisconsin industry, agriculture and forestry helped America become “the arsenal of Democracy.”

Wisconsin also boasted the largest ammunition plant in the world. At its peak the Badger Ordnance Works outside of Baraboo employed nearly 10,000 people. It continued operation until the end of the Vietnam War and was considered a likely target for a nuclear attack if war had broken out between the U.S. and the old Soviet Union.

Wisconsin factories churned out impressive quantities of very diverse goods used to prosecute the war in both the European and Pacific theaters. Shipbuilders in Manitowoc, Milwaukee, Superior and Sturgeon Bay built submarines, minesweepers, Liberty Ships, tugs and barges, while Fairbanks Morse in Beloit assembled the engines to power them.

Textile manufacturers made uniforms, overcoats, parkas, jackets, raincoats, ponchos, undershirts, socks and caps. At least three shoe manufacturers, including Allen-Edmonds, made shoes and rubber boots.

Snap-on Tools produced wrenches, Ray-O-Vac built batteries, A.O. Smith made bomb components while Briggs & Stratton made the fuses.

Other companies made, among many other things, canteens, foot

Wisconsin Historical Society, WHS-64627

Wisconsin’s Role as “The Arsenal of Democracy”

USS "Peto”, a Gato-class submarine, manufactured by the Manitowoc Shipbuilding Company and launched April 30, 1942.

The need to feed military personell and civilians around the world was a boone for farmers. During the war, Wisconsin became the largest producer of vegetables for canning. BV Wisconsin Business Voice

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Wisconsin Exports Hit Record High in 2014

L

ed by an increase in exports of goods in agricultural, water technology and biotechnology, Wisconsin exports exceeded $23.4 billion in 2014 – a new state record. That figure represents a 1.4 percent increase over 2013 and an 18.3 percent jump from 2010.

Wisconsin’s agricultural exports rose by 13.6 percent in 2014 to a record $3.7 billion. The state’s increase was nearly three times greater than the growth rate for total U.S. agriculture exports in 2014 and marks the fifth straight year Wisconsin’s numbers have risen.

Manufacturing exports – which make up 84 percent of the state’s total exports – held steady in 2014 at $19.7 billion. Industrial machinery continues to be Wisconsin’s top export product category at $6.37 billion, accounting for 27 percent of all state exports. The second-largest product category is medical and scientific instruments, which accounts for 9 percent of all state exports at $2.17 billion.

Wisconsin’s export growth in 2014 was spurred by an increase in shipments to Canada and Mexico, Wisconsin’s top two export destinations. Exports to Mexico jumped by 12.7 percent to $2.84 billion, primarily because of an increase in the export of vehicle parts, plastics and dairy products. Exports to Canada – the state’s number one export destination – were up 5.5 percent to $7.94 billion, due primarily to an increase in organic chemicals, ethanol, fur skins and beverage exports.

Other exporting highlights from 2014 include:

• Wisconsin ranked 19th in the U.S. in total exports – behind Massachusetts and ahead of Minnesota. The state ranked 13th in agricultural exports.

• Wisconsin leads the nation in exports of more than 40 different products including cranberries, whey, ginseng roots, outboard engines, refrigeration equipment, firefighting vehicles, fire extinguishers and bicycles.

• Wisconsin businesses exported to 206 different countries.

• Exports to European Union countries increased by 8.1 percent, due in part to increases in exports of automatic data process machines and tractors, trucks and other vehicles.

• The state saw an 8.6 percent increase in the exports of plastics, which surpassed the $1 billion mark in 2014. Canada is the destination of 42 percent of the state’s plastic exports.

• Aircraft and spacecraft exports rose by 32 percent to $404.9 million. The United Kingdom was the leading destination of products in that category.

• The state continues to experience a rise in exports of fur skins. The $269 million in fur skin exports is up 53 percent from 2013 and 123 percent from 2012. BV

Wisconsin Exporting Fast Facts Wisconsin companies exported more than $23.4 BILLION in goods in 2014. a nEW rEcorD!

top DEstination For Wisconsin Exports 2014

33.9% canada

12.1% mexico

6.7% china

3.9% JaPan

3.6%

uniTed kingdom

Wisconsin’s top ExportED proDucts 2014

27.2%

indusTRial machineRy

9.3%

medical/ scienTific insTRumenTs

9.1%

elecTRical machineRy

7.9%

Vehicles and PaRTs

4.4%

PlasTics

proDucts With signiFicant groWth From 2013 to 2014

169%

oRganic chemicals

53%

Raw fuR skins

32%

aiRcRafT and sPacecRafT

18%

meTal Tools and cuTleRy

9%

PlasTics

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

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$2 BILLION IN TAX RELIEF BUILDS

CONFIDENCE. STRONG BUSINESS IS BUILT ON BOTH.

IN WISCONSIN® WE’RE AS INVESTED AS YOU ARE. We know financial stability is important to your business. That’s why we work hard to keep our tax policies in check. In doing so, we’ve created an economic environment that allows your business to compete globally and nationally. If you’re paving the way in an emerging industry, our policies are suited for your advancement. If you’re looking for highly skilled employees, we’ve devoted millions to workforce development programs. If you’re in manufacturing or agriculture, we can virtually eliminate your tax burden.

That way, you can build your business with confidence in a climate you feel good about. To learn more about how our tax policies can help you expand or relocate In Wisconsin, call 855-INWIBIZ (toll free) or visit Confidence.InWisconsin.com.

®

Photo: Schneider, Green Bay, WI. In Wisconsin® is a registered trademark of Wisconsin Economic Development Corporation.

The School District of Beloit’s Career Technical Education Program: A Successful Link from Education to Business

By Steve McNeal

I

n 2011 Diane Hendricks, owner of the Hendricks Holding Company and chairperson of ABC Supply Co., Inc., flew a number of education and business leaders from the Greater Beloit community (including WMC's Kurt Bauer, a Beloit native) to Lehigh Career and Technical Institute in Schnecksville, Pennsylvania. Here leaders toured the school and examined their vast program offerings. What we found was an incredible all-inone campus where students acquire the skills and knowledge to be career-ready after high school. As one of the educators lucky enough to participate in the trip, I knew then we had an obligation to look differently at our offerings and programs for the sake of our students.

We committed to transforming Beloit Memorial High School into a center that would serve our community and students with a career emphasis. Although we knew we could not be a county center like Lehigh, we were very aware most schools would or could not make the monetary commitment for such an endeavor and our investment would draw students to us from other districts.

Our journey began with the premise that we as educators needed to get in tune with what our business and industry leaders told us they needed. We created advisory committees for each of our Career and Technical Education (CTE) areas from Greater Beloit business partners – the owners and operators of machine shops, welding companies, construction and informational technology companies along with other areas driving the decisions of what we needed to teach. They also advised what we needed to stop teaching, what equipment we would need as well as what equipment we should get rid of, and finally what specific skills our students would need in order to work for them. They designed shop areas to accommodate

new equipment and layouts they would use in real industry settings to create effective workflow. This included changing old shop environments to new, cleaner and more appealing workspaces.

This transformation would only be effective if we changed how we hired for the positions in each of the CTE areas. We needed to find skilled teachers with a specialty, industry certification or a desire to dive deeply into a concentration of one or two areas. This required recruitment, paying the teacher accordingly and contracts encouraging the teacher to stay for extended amounts of time. Once the teachers were employed, the expectation was that we would get him or her involved in externship programs to give real life, on-the-job experience with local manufacturers or businesses with whom they would be working. Our local businesses were great about opening their doors and employing our staff during summer. It helped expand the teachers’ skills and strengthen their relationships with the business leaders. The unforeseen benefit was the teachers witnessed other workers on site and assessed the soft skills, or in some cases lack thereof, which had to be introduced into the course work at the schools.

After year two we hired a full-time Career Technical Education administrator to coordinate all the programs. We now had a person to help continue growing our business partnerships and connections with post-secondary schools, oversee the offerings and curriculum and build a network to staff our programs.

Photos accompanying this this column are of Beloit Memorial High School’s state-of-the-art Career and Technical Education department, including CNCs, welding and lathe.

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One area we have expanded is transcribing our classes and successfully articulating with many colleges and technical schools in the area, rather than just working with our own local technical college. Many students earn dual credit during their junior and senior years in high school allowing them to graduate in some cases already half way through the program at the technical college.

Our students are now working in internship programs at different work sites. With solid relationships at local businesses, we are increasing the number of students working on sites with the hope they ultimately will be hired by the business. We feel this is a winwin situation for both parties.

So, how has it worked? The number of business partnerships has risen to over 55 and more impressively, the number of students in the Career Technical Education areas have in most areas more than doubled.

Here are some examples of the increased student enrollment: 2013-15 School Year

2014-15 School Year

90 students

244 students

Project Lead the Way

51

64

Construction

33

168

Cabinetry

40

84

Instructional Technology

61

101

111

175

Autos

Welding

This year we hired a full-time career advocate to work with students and young adults in career exploration and guidance.

This position was funded by a local grant from a business that has tremendous interest in equipping our young people with knowledge related to career choice. The hope now is to partner with the school district to offer programming for young adults and unemployed adults who are without employment or direction. In an area with so many needs by local manufacturers, we know we can do more to connect possible employees to the needs of our local businesses. BV Steve McNeal recently retired as Superintendent of Schools for the Beloit School District. He is Vice President of Educational Services for Corporate Contractors, Inc.

Wisconsin Business Voice

27

Who is Mikey the Manufacturer?

By Ben Bemis

L

iving in Wisconsin, odds are we are less than two degrees of separation from the vital manufacturing industry. In my case, my father has worked in the manufacturing industry for more than 35 years. Yet, as a community, we continue to have issues building a qualified base of skilled workers to fill the roles required for basic manufacturing.

their favorite toy. I envisioned a children’s book that would tell the story of manufacturing through the eyes of a child.

When I first started laying the ground work for the story, I had no idea the level of interest it would spark. Since that point and throughout the creation process, the idea evolved to something far beyond what I had originally imagined. While children may Three years ago I was sitting in a manufacturing conference and have to stretch on vocabulary, like the word ‘manufacturing’, they the presenter made a statement about bringing awareness to high fully grasp the concept of making things. And in its simplest school students regarding alternatives to college. These alternatives form, that is the manufacturing process. As I started describing a included technical colleges, apprenticeships and building trade basic fabrication process to children they, as expected, would ask knowledge. While I agree the idea of manufacturing needed to be questions. Of course their questions were directly related to their brought to light earlier in life, I was convinced high school was too understanding of the world. For example (giving you a little sneak late. Moreover this would continue to lead to missed opportunities. peek of the book) when describing a press-break, kids would often picture a “superhero-like strongman bending metal.” Additionally This all happened right around the same time as the birth when I was describing robots, nearly all the of our first child, Warren. I began to contemplate children pictured humanoid robots.

“While children may have Warren’s future and how best to mold him to Finally when discussing a heat be a well-rounded person. I started to look to stretch on vocabulary, like treat process, the temperatures for books, specifically children’s books that didn’t matter to the kids – I the word ‘manufacturing’, they fully would help explain Grandpa’s job and needed to clarify the ‘space suits’! passion towards manufacturing. What did I find? Nothing.

grasp the concept of making things. here we have a process that on And in its simplest form, that is the aSo high level would be difficult for manufacturing process.” children to understand, yet there are

I realized that in our society and educational system, we have idealized certain professions and have completely ignored others. When a child is asked, “What would you like to be when you grow up?” the answer is canned. I asked many children that question and nearly all chose from the ever popular… a doctor, a dentist, a teacher, or of course Spiderman. The reason for their responses is simple, it is the limit of that which they have been exposed.

So I began to think of a basic metal fabrication process through the eyes of a child. After many interviews with machinists, welders, engineers and owners of manufacturing facilities, I started to see excitement in their eyes, similar to the excitement of a child describing

28

discuss lasers…

superheroes bending metal, with robots and space suits, and we haven’t even begun to

Sparking interest in a child is not difficult, but it is on us to build interest and understanding through their eyes. My hope is that this book is used as a tool to bring families closer together, spark creativity and wonder and finally, help bring us the next generation of manufacturers. BW Ben Bemis is a commercial banker by day and author of Mikey the Manufacturer by night. He can be reached at Mikeythemanufacturer@gmail.com Mikey the Manufacturer is available for purchase online through the Little Creek Press: http://www. littlecreekpress.com/kids_youngadults.php

OZONE REGULATION Eric Bott WMC Director of Environmental & Energy Policy

EPA Proposes Most Expensive Air Rule Ever

Watch Eric explain more about his column: www.wmc.org/bv

(And We’re Not Even Talking About Global Warming Regulations)

M

ost people associate ozone with a layer of the stratosphere that helps protect the Earth from ultraviolet radiation. When it comes to ozone regulation, however, ground level ozone is the main target of the Environmental Protection Agency (EPA).

Ground level ozone forms naturally and as a result of chemical reactions taking place when certain emissions from automobiles, factories and power plants, namely volatile organic compounds (VOCs) and nitrogen oxides (NOx), are exposed to sunlight. Ozone is generally a pollutant of concern in and around urban areas during summer months. In Wisconsin, counties along Lake Michigan’s shoreline have historically struggled with ozone, in large part due to emissions from neighboring Illinois and Indiana. However, pollution levels have declined dramatically in recent years and today only Sheboygan and the eastern portions of Kenosha County are designated as “nonattainment,” or polluted,

by EPA.

That could all change if EPA is successful in finalizing its current proposal. On the eve of this past Thanksgiving, EPA quietly announced its intention to dramatically lower the existing National Ambient Air Quality Standard (NAAQS) for ozone from 75 parts per billion (ppb) to between 65 and 70 ppb. That’s a meaningful change.

At 65 ppb, most of the country (approximately 90 percent of monitored counties) would be put into nonattainment.

Even areas far removed from smoke stacks and traffic jams like Yellowstone National 30

Park could not comply with the Obama Administration’s rule. In Wisconsin, one could draw a line on a map from Marinette to Prairie du Chien – everything to the South and East of that line would likely go into nonattainment. Some Western counties would also be pulled into the Minneapolis nonattainment area.

• $10 billion in total compliance costs • $580 drop in average household consumption per year • $1 billion more for residents to own/ operate their vehicles statewide (2017 to 2040)

EPA’s actions will have far reaching consequences on the ability of our Manufacturers and utilities hoping to communities to attract commercial and locate or expand in nonattainment areas industrial investment and will create will face Nonattainment New Source measureable burdens on Wisconsin Review (NSR), meaning workers. Environmental they will have to compliance “Most of the country offset new emissions will dominate (approximately 90 percent of capital budgets, with reductions from other sources monitored counties) would be leaving little for in the area. These investment in new put into nonattainment.” offsets carry steep workers, production ratios that can climb as equipment or higher high as two-to-one in some situations. salaries. Local governments will feel the Nonattainment NSR has proven so pinch too. EPA’s actions will limit the burdensome that ozone nonattainment ability of communities to expand their areas are often referred to as economic notax base, putting increased pressure on go zones for manufacturing. In counties residential property taxpayers as well as determined to be in moderate or severe public school and local budgets. nonattainment, existing manufacturers and Is it worth it? Ozone-forming emissions utilities will face costly new compliance have plummeted more than 33 percent mandates, driving up the cost of electricity since 1980 and will fall further as states and making Wisconsin companies less continue to implement EPA’s current competitive. standard, a standard I may add that was The National Association of only promulgated a few years ago and Manufacturers recently quantified these that is still being implemented. We all value impacts to Wisconsin. At a standard of 65 clean air but when EPA sets a standard so ppb, Wisconsin could face: low that even Yellowstone and portions of our Northwoods can’t comply, we have to • $30 billion gross state product loss from question their science and their sense. BV 2017 to 2040 • 24,421 lost jobs or job equivalents per year

Follow Eric on Twitter @BottWMC

Company News Kapco Inc.’s Non-Profit Organization Surprises Kids with Aaron Rodgers

Late last year, Kapco won the first-ever Wisconsin Business Achievement Award. The award included a $50,000 donation from the Flowers Family Foundation to a Wisconsin-based non-profit organization of the winner’s choosing. Kapco gifted to gift the money to Hometown Heroes, an organization which honors our fallen Military Heroes by embracing the children they left behind.

Hometown Heroes recently had Aaron Rodgers, Green Bay Packers quarterback, surprise a group of kids whose fathers died while serving in the military. The organization also put on a weeklong camp in Wisconsin for children who have lost a loved one in the military to help them through their loss and connect with kids who have been through similar experiences.

U.S. Venture, Inc. Adds U.S. Gain Division

U.S. Venture, Inc., a leading distributor and marketer of energy, automotive and lubricant products located in Appleton, has established a separate corporate division for its Compressed Natural Gas (CNG) business. The new division, called U.S. Gain, will comprise all operations related to its expanding CNG network for commercial fleet operators and shippers in North America. The network is marketed under the GAIN Clean Fuel brand which has 39 sites operational or underway with a target of 100 locations in the next two years.

4

UnitedHealthcare and Business Health Care Group Form New Health Benefits Program

Early this year UnitedHealthcare and the Business Health Care Group (BHCG) of southeast Wisconsin announced a multi-year relationship to deliver high-quality, cost-effective health benefits to employers in the greater Milwaukee area. UnitedHealthcare will be the exclusive provider of health benefits for the BHCG. The UnitedHealthcare offerings will help employees obtain care from physicians and facilities that meet or exceed specific, independent quality of care and cost-efficiency standards. These types of programs have been proven to improve health care quality and reduce cost trends. Many BHCG member employers require national coverage and this partnership will give their employees one consistent solution across all of their locations.

Wegner CPAs Welcomes New Partner

Wegner CPAs recently hired Michael W. Steinl, CPA, CGMA as a new partner in their Tax & Business Services department. Steinl’s expertise and leadership provide specialized guidance to further the expansion of Wegner CPAs’ Manufacturing/Supply Chain niche and enhances their Employee Benefit Plan Audit practice.

Steinl

5 3

6 2 7 8 9

1

10

WMC elected 10 new board members in January. They are pictured here: 1) Cliff King, Skyward, Inc. 2) Brad DeNoyer, Baker Tilly Virchow Krause 3) Damond Boatwright, SSM Health Care of Wisconsin 4) Michael Wallace, Fort HealthCare 5) Stephen Loehr, Kwik Trip, Inc. 6) John Pfeifer, Mercury Marine 7) Aaron Powell, Flexion, Inc. 8) Susan Turney, Marshfield Clinic Health System, Inc. 9) Jeffrey Bailet, Aurora Health Care; and 10) Jim Leef, ITU AbsorbTech, Inc. Wisconsin Business Voice

31

The Ethanol Blend Wall

How a Federal Policy Threatens a Key Wisconsin Industry and the Contents of Your Garage

By Eric Bott

D

ebates about ethanol mandates get heated in a hurry.

Proponents tout economic gains for corn growers, energy independence and environmental benefits. Critics charge that there’s an environmental cost to ethanol, that it drives up food prices and that shale oil has answered the energy independence question.

priority as well but also stresses that high ethanol content fuel blends raise safety concerns for the marine industry.

“We’re concerned about our consumers’ experience and the value they get from their engine,” says Pfeifer. “We design our engines to last a lifetime and to run safely. When you start burning fuel with concentrations of ethanol above 10 percent bad things can happen.

Most of these failures are not going to occur at the dock. If they occur on the water, you potentially have a safety problem.”

For Wisconsin’s small engine and outdoor power equipment manufacturers, their position on ethanol really comes down to this – product quality and consumer satisfaction. Regardless of possible Todd Teske, Chairman/President and CEO of benefits or detractions of ethanol, industry experts Briggs and Stratton Corporation says more say one thing is clear; high concentrations of “We’re not anti-ethanol. education is needed to help prevent ethanol in gasoline threaten the reliability and With an estimated 70 Our engines are made to run on mis-fuelings. performance of small engines. And that’s bad million Briggs engines installed in news for consumers and business.

E10 but we have to ensure that our equipment all across the country, The small engines that power outdoor it’s easy to see why the Wauwatosacustomers get the value they pay based equipment ranging from lawnmowers and manufacturer might be snowmobiles, to chainsaws and generators, concerned. good money for.” are built to a 10 percent ethanol design window.

“Small Engines are in the fabric of According to the U.S. Department of Energy, use of Americana,” says Teske. “There are so many people out there, so gasoline blends containing more than 10 percent ethanol, E15 many households, that have equipment powered by small engines. for example, may cause engine part failure, hotter engine and We believe it’s extremely important people understand and use the exhaust temperatures, and erratic operations. Allen Gillette, VP of right fuel for the right equipment. Customers deserve to get the Engineering for Waukesha-based Generac Power Systems, says this value they pay for.” is a major concern for Wisconsin manufacturers.

“As ethanol content increases above 10 percent, tests show you impact fuel system materials, startability, power outputs and other factors,” says Gillette. “This hurts our ability to ensure our equipment performs to meet customer expectations.”

Kris Kiser, President/CEO of the Outdoor Power Equipment Institute (OPEI) says increased ethanol fuel blends absorb a great deal more airborne water than gasoline. This makes engines more difficult to start and more prone to failure, especially if they’re run intermittently or seasonally – like snow throwers or boat motors here in Wisconsin

“As you add ethanol, you increase the likelihood that products with a limited, recreational or seasonal use will be negatively impacted,” says Kiser. “The longer the product sits, the more damage ethanol can cause.”

Manufacturers like Dan Ariens, Chairman/CEO of Brillion-based Ariens Company, worry consumers may unknowingly damage a product through mis-fueling and incorrectly associate resulting problems with that product’s maker.

“The biggest challenge for us is the impact on customer experience,” says Ariens. “We’re a family business. Our name is on our product and that heightens our awareness of customer perception. If a product is damaged because of mis-fueling, that’s a big issue for us.”

John Pfeifer, President of Mercury Marine in Fond du Lac, says providing an excellent consumer experience is Mercury’s top 32

Illegal Use of E-15

Asked if they thought state and federal regulators were doing an adequate job educating the public about the dangers of mis-fueling, industry leaders universally agreed that government agencies are falling short.

They stressed they do their best to educate their customers but it’s difficult for industry to educate the public on a standard that’s constantly evolving.

The first partial waiver for gasoline with a blend of 15 percent ethanol, known as E15, was introduced by EPA in 2010 for engines in model year 2007 and newer light duty motor vehicles and was amended in 2011 to include 2001 and newer light duty motor vehicles.

So, technically, it is currently illegal to use E15 in small engines for outdoor power equipment, recreational vehicles, motorcycles and marine products. The majority of consumers are unaware of this, driving confusion at the pump and mis-fueling. This is why manufacturers are focusing on educating consumers.

The Blend Wall

The Renewable Fuel Standard (RFS), amended by Congress in 2007 is a federal program mandating ever-escalating amounts of renewable fuels to be blended with gasoline. At the time, Congress assumed gasoline consumption would continue to increase while domestic petroleum production would decline. In reality the exact opposite has happened, leaving petroleum refiners forced to mix blends of gasoline that cars and small engines can’t use. This is called the ethanol blend wall.

“The blend wall is an immovable object,” says Ariens. “As gasoline consumption declines and RFS mandates increase the only way to hit the blend mandate is to put a higher percentage of ethanol in each tank. The Standard needs to be reformed.”

Kiser says the uncertainty created by the Environmental Protection Agency’s mishandling of the RFS only makes matters worse.

EPA is required by law to finalize each year’s RFS mandate by November 30 of the preceding year but it has yet to finalize rules for either 2014 or 2015.

“The underlying assumptions of the RFS were flawed and now the federal government has proven itself incapable of meeting the statutory obligations contained in the RFS,” says Kiser. “The effected industries on both sides have no direction. An engineer can’t design a product based on what the EPA might do.”

The Greenness of Ethanol

Industry experts contend the rationale for the RFS may no longer exist and America is becoming energy independent through shale oil. The environmental benefits of ethanol, once touted as a justification for the RFS, are now suspect.

of a bombshell study published last December in the Proceedings of the National Academy of Sciences, which casts doubt on ethanol’s greenness.

“When we perform a comprehensive life cycle assessment of the various inputs and outputs of different fuel options, we find corn-based ethanol is roughly twice as damaging as gasoline from an air quality and public health standpoint,” says Hill. “As fuels they’re comparable but the corn-ethanol production process is more damaging.”

Not content to wait for Congress to reform the RFS, Wisconsin manufacturers like Mercury Marine are working with the National Marine Manufacturers Association (NMMA) to develop alternative biofuels that may be more compatible with small engines. Other manufacturers such as Sturtevant-based BRPEvinrude are also working with NMMA on these initiatives. Until these products come online, however, industry leaders warn that consumers should continue to pay close attention to the fuels they put into their engines.

“We’re not anti-ethanol,” says Teske. “Our engines are made to run on E10 but we have to ensure that our customers get the value they pay good money for. That’s the only motivation we have.” BV

To learn more about the impacts of ethanol blends on small engines, visit www.lookbeforeyoupump.com

Dr. Jason Hill of the University of Minnesota is one of the authors

Wisconsin Business Voice

33

TAX REFORM Jason Culotta WMC Director of Tax & Transportation Policy

Budget Presents Opportunity for Tax Reform T he state budget introduced by Gov. Walker will continue the property tax freeze but still more can be done to ease the tax burden on businesses. With limited funds to cut taxes, the Legislature can adopt administrative reforms that will improve our tax climate without significantly impacting revenue.

Economic Substance

In addition to the Wisconsin Department of Revenue’s (DOR) existing power to disregard what it considers “sham” transactions, in 2009 – at the request of the Doyle Administration – DOR was given additional authority to reject transactions it believes lack “economic substance.” Given the subjective nature of these determinations, businesses are in the dark regarding what transactions DOR will accept and what it will reject. The Legislature should conform Wisconsin law with federal law, place the burden of proof on DOR when asserting economic substance and create an “angel list” of transactions DOR could not secondguess, such as decisions about where and how to incorporate.

3 percent. This difference in rates (12 percent on taxpayers vs. 3 percent on DOR) is the largest disparity of any state. Up until two years ago, the refund/deposit rate was 9 percent. Equalizing the rates by reducing the 12 percent rate paid by taxpayers would be preferable but also costly to implement. Restoring the 9 percent refunds rate would at least remove Wisconsin from ranking worst among its peers.

Statistical Sampling

Many states use statistical sampling – similar to polling in election campaigns – to accurately conduct sales and use tax audits.

Unfortunately, DOR does not use statistical sampling; rather it requires huge sample sizes from taxpayers which result in long audits without better accuracy. DOR should be directed to study other state statistical methods that could save resources for both taxpayers and DOR.

Third Party Audits

DOR contracts with third parties to conduct audits or purchase confidential taxpayer information. Among these third parties is Another 2009 enactment empowers DOR the Multi-State Tax Commission (MTC), which sells “Department of to deny deductions, credits, and taxpayer information to, and conducts joint audits exemptions and impose significant DOR. Businesses frequently complain Revenue does not use statistical with, penalties (e.g. greater of $500 or third party auditors do a poor job, are not 25 percent of DOR’s assessment) familiar with Wisconsin law and are not as sampling; rather it requires huge if the taxpayer fails to provide accurate as DOR auditors. Unlike DOR staff, sample sizes from taxpayers which documents requested by DOR – third parties are not held to confidentiality even if the documents don’t exist! standards for taxpayer information and can be result in long audits without This power is above and beyond paid on a contingency fee basis. The Legislature better accuracy.”

DOR’s existing authority to subpoena should prohibit DOR from contracting with third and examine records and compel witnesses party auditors (particularly for unclaimed property to testify before DOR. No other state empowers its audits), except for MTC audits, and switch the burden of proof revenue agency to impose such penalties. This power has singled from the taxpayer to DOR for MTC audits.

Wisconsin out for criticism at the national level and should be These reforms and others – like improving the statutes governing repealed. unclaimed property and updating the base period in which to

Production of Documents

Refunds Interest Rate

When DOR determines a taxpayer owes additional tax, a 12 percent interest rate applies. If the taxpayer fails to pay the assessment on time, the interest rate jumps to 18 percent. However, when the state owes money to a taxpayer because of refund or the return of money deposited with DOR, the interest rate is only 34

claim research and development credits – would cost the state little in the way of lost revenue. Adopting these changes would, however, significantly improve the tax regulatory climate for Wisconsin businesses. BV Follow Jason on Twitter @JGCulotta

Party.

Dist R.97 R.32 R.41 D.64 D.11 D.77 R.68 D.95 R.39 D.10 R.22 R.50 R.60 D.19 D.81 R.83 R.35 D.92 D.94 R.87 R.58 D.90 D.18 R.85 D.46 D.79 D.54 R.33 R.13 R.2 R.37 R.28 D.17 D.43 D.47 R.99 R.26 R.61 D.12 R.1 R.38 R.24 R.30 D.44 R.14 R.59 R.72 R.84 R.69 R.67 R.31

Phone (608) 266.8580 266.1190 266.8077 266.5504 266.3756 266.3784 266.9172 266.5780 266.2540 266.7671 267.2367 266.8531 267.2369 266.0650 266.7746 266.3363 266.7694 266.7015 266.0631 266.7506 264.8486 266.0616 266.0645 266.0654 266.7678 266.5340 266.2254 266.5715 267.9836 266.9870 266.9650 267.2365 266.5580 266.3790 266.8570 266.3007 266.0656 266.2530 266.5813 266.5350 266.8551 266.3796 266.1526 266.7503 266.9180 266.9175 266.0215 267.5158 267.0280 266.1194 266.9967 8W 119 W 210 N 201 W 5N 104 N 314 N 307 W 312 N 3N 121 W 20 N 107 W 3N 412 N 127 W 321 E 107 N 124 N 109 W 12 W 304 W 303 W 9W 120 N 9N 109 N 17 N 220 N 212 N 316 N 19 N 320 W 113 N 322 W 221 N 18 N 315 N 111 N 10 W 216 N 218 N 304 E 8N 324 E 17 W 207 N 129 W 15 W 214 N 306 E

Office

Joint Finance Committee member

A Allen, Scott August, Tyler (Speaker Pro Temp) B Ballweg, Joan Barca, Peter (Minority Leader) Barnes, Mandela Berceau, Terese Bernier, Kathy Billings, Jill Born, Mark Bowen, David Brandtjen, Janel Brooks, Ed Brooks, Robert Brostoff, Jonathan C Considine, Dave Craig, David  Czaja, Mary D Danou, Chris Doyle, Steve E Edming, James G Gannon, Bob Genrich, Eric Goyke, Evan H Heaton, Dave Hebl, Gary Hesselbein, Dianne  Hintz, Gordon Horlacher, Cody Hutton, Rob J Jacque, Andre Jagler, John Jarchow, Adam Johnson, La Tonya Jorgensen, Andy (Min Caucus Chair) K Kahl, Robb Kapenga, Chris Katsma, Terry Kerkman, Samantha (Caucus Sgt at Arms) Kessler, Frederick Kitchens, Joel Kleefisch, Joel Knodl, Dan (Asst Maj Leader)  Knudson, Dean Kolste, Debra  Kooyenga, Dale (JFC VC) Kremer, Jesse Krug, Scott Kuglitsch, Mike Kulp, Bob L Larson, Tom Loudenbeck, Amy

Representative

Top leaders in boldface

State Assembly

M Macco, John Mason, Cory Meyers, Beth (Min Caucus Sec’y) Milroy, Nick Murphy, Dave Mursau, Jeffrey Murtha, John (Maj Caucus Chair) N Nerison, Lee (Maj Caucus VC) Neylon, Adam Novak, Todd  Nygren, John (JFC Co.Chair) O Ohnstad, Tod Ott, Alvin Ott, Jim P Petersen, Kevin Petryk, Warren Pope, Sondy Q Quinn, Romaine R Riemer, Daniel Ripp, Keith Rodriguez, Jessie (Maj Caucus Sec’y) Rohrkaste, Mike S Sanfelippo, Joe Sargent, Melissa Schraa, Michael Shankland, Katrina (Asst Min Leader) Sinicki, Christine Skowronski, Ken Spiros, John Spreitzer, Mark Steffen, David Steineke, Jim (Majority Leader) Stuck, Amanda Subeck, Lisa Swearingen, Rob T Tauchen, Gary Taylor, Chris Thiesfeldt, Jeremy Tittl, Paul Tranel, Travis V VanderMeer, Nancy Vorpagel, Tyler Vos, Robin (Speaker) W Wachs, Dana Weatherston, Thomas Y Young, Leon Z Zamarripa, JoCasta (Min Caucus VC) Zepnick, Josh (Caucus Sgt at Arms)

Representative

For more information go to www.legis.wisconsin.gov

Mailing address: PO Box 8952 (A-L) or PO Box 8953 (M-Z); Madison, WI 53708 Assembly email: Rep.[LAST NAME]@legis.wisconsin.gov Assembly Chief Clerk: 608.266.1501

Party.

Dist R.88 D.66 D.74 D.73 R.56 R.36 R.29 R.96 R.98 R.51 R.89 D.65 R.3 R.23 R.40 R.93 D.80 R.75 D.7 R.42 R.21 R.55 R.15 D.48 R.53 D.71 D.20 R.82 R.86 D.45 R.4 R.5 D.57 D.78 R.34 R.6 D.76 R.52 R.25 R.49 R.70 R.27 R.63 D.91 R.62 D.16 D.8 D.9

Phone (608) 266.0485 266.0634 266.7690 266.0640 266.7500 266.3780 266.7683 266.3534 266.5120 266.7502 266.2343 266.0455 266.5831 266.0486 266.3794 266.0660 266.3520 266.2519 266.1733 266.3404 266.0610 266.5719 266.0620 266.0960 267.7990 267.9649 266.8588 266.8590 266.1182 266.1192 266.5840 266.2418 266.3070 266.7521 266.7141 266.3097 266.5342 266.3156 266.0315 266.1170 266.8366 266.8530 266.9171 266.7461 266.0731 266.3786 267.7669 266.1707 22 W 6N 409 N 126 N 318 N 113 W 309 N 310 N 125 W 304 N 309 E 128 N 323 N 317 N 105 W 103 W 118 N 7W 122 N 223 N 204 N 208 N 306 N 321 W 320 E 119 N 114 N 209 N 15 N 420 N 21 N 115 W 4W 418 N 123 W 13 W 306 W 16 W 219 N 308 N 11 W 18 W 211 W 302 N 307 N 11 N 112 N 7N

Office

328 Hart Senate Ofc Bldg 202.224.5323 Contact through: ronjohnson.senate.gov

Johnson, Ron (R)

2nd Cong. District 313 Cannon Contact through: pocan.house.gov

3rd Cong. District 1502 Longworth 202.225.5506 Contact through: kind.house.gov 4th Cong. District 2245 Rayburn 202.225.4572 Contact through: gwenmoore.house.gov

Pocan, Mark (D) Kind, Ron D (D) Moore, Gwen (D)

501 E Washington Ave | Madison, WI 53703-2914 PO Box 352 | Madison, WI 53701-0352 608.258.3400

www.wmc.org

Current as of January, 2015

2015-16 Wisconsin Legislative Pocket Directory

Attorney General Brad D. Schimel 608.266.1221 Dept of Justice, 114 E, PO Box 7857, Madison, WI 53707

608.266.3516 email: ltgov@wisconsin.gov

Lt. Gov Rebecca Kleefisch (R) 19 E, PO Box 2043, Madison, WI 53707

8th Cong. District 1513 Longworth 202.225.5665 Contact through: ribble.house.gov

Ribble, Reid (R)

608.266.1212 email: govgeneral@wisconsin.gov

7th Cong. District 1208 Longworth 202.225.3365 Contact through: duffy.house.gov

Duffy, Sean P. (R)

Governor Scott Walker (R) 115 E, PO Box 7863, Madison, WI 53707

6th Cong. District 501 Cannon 202.225.2476 Contact through: grothman.house.gov

Grothman, Glenn (R)

Sensenbrenner, F. James (R) 5th Cong. District 2449 Rayburn 202.225.5101 Contact through: sensenbrenner.house.gov

202.225.2906

1st Cong. District 1233 Longworth 202.225.3031 Contact through: paulryan.house.gov

Ryan, Paul (R)

House Office Building, Washington, DC 20515

House of Representatives of the 114th Congress

717 Hart Senate Ofc Bldg 202.224.5653 Contact through: baldwin.senate.gov

Baldwin, Tammy (D)

Senate Office Building, Washington, DC 20510

Senators of the 114th Congress

U.S. Senate

Federal/State Officials



State Legislature



Remove this handy tear-out pocket directory so you always know how to contact your legislators.

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Remove this handy tear-out pocket directory so you always know how to contact your legislators.

Senate Committee on Agriculture, Small Business, and Tourism Moulton (C), Tiffany (VC), Harsdorf, Petrowski, LeMahieu, Vinehout, Hansen, L. Taylor, Erpenbach Senate Committee on Economic Development and Commerce Gudex (C), Petrowski (VC), Darling, Lassa, Ringhand Senate Committee on Education Olsen (C), Darling (VC), Vukmir, Nass, C. Larson, Risser, Bewley Senate Committee on Education Reform and Government Operations Farrow (C), Harsdorf (VC), Nass, Harris Dodd, Vinehout Senate Committee on Elections and Local Government LeMahieu (C), Farrow (VC), Wanggaard, Risser, Miller Senate Committee on Health and Human Services Vukmir (C), Moulton (VC), LeMahieu, Carpenter, Erpenbach Senate Committee on Insurance, Housing, and Trade Lasee (C), Olsen (VC), Roth, Bewley, Harris Dodd Senate Committee on Judiciary and Public Safety Wanggaard (C), Vukmir (VC), Lasee, Risser, L. Taylor Senate Committee on Labor and Government Reform Nass (C), Wanggaard (VC), Marklein, Wirch, C. Larson Senate Committee on Natural Resources and Energy Cowles (C), Lasee (VC), Olsen, Miller, Wirch Senate Committee on Revenue, Financial Institutions, and Rural Issues Marklein (C), Farrow (VC), Tiffany, Lassa, Ringhand Senate Committee on Senate Organization S. Fitzgerald (C), Lazich, Farrow, Shilling, Hansen Senate Committee on Sporting Heritage, Mining, and Forestry Tiffany (C), Roth (VC), Moulton, Wirch, Vinehout Senate Committee on Transportation and Veterans Affairs Petrowski (C), Marklein (VC), Cowles, Carpenter, Hansen Senate Committee on Universities and Technical Colleges Harsdorf (C), Nass (VC), Gudex, Hansen, Bewley Senate Committee on Workforce Development, Public Works, and Military Affairs Roth (C), Gudex (VC), Farrow, C. Larson, Lassa

Senate Committees

Assembly Committee on Public Benefit Reform Born (C), Kapenga (VC), Brandtjen, Vorpagel, Schraa, Kremer, Craig, Neylon, Krug, Tauchen, Jorgensen, Goyke, Kolste, Spreitzer, Subeck Assembly Committee on Rules Steineke (C), Vos (VC), August, Knodl, Murtha, Ballweg, Kuglitsch, Jagler, Born, Barca, Shankland, Jorgensen, Zamarripa, Pope Assembly Committee on Small Business Development Tauchen (C), Edming (VC), Tranel, Hutton, Allen, Swearingen, T. Larson, Gannon, VanderMeer, Skowronski, Jorgensen, Sargent, Doyle, Barnes, Bowen Assembly Committee on State Affairs and Government Operations Swearingen (C), Craig (VC), Jagler, Brandtjen, Kleefisch, Gannon, Ripp, Kulp, Tauchen, Vorpagel, Zamarripa, Sinicki, Kahl, Ohnstad, Brostoff Assembly Committee on Tourism Tranel (C), Jarchow (VC), Mursau, Tauchen, Kleefisch, Kitchens, Born, A. Ott, Swearingen, Ballweg, Billings, Doyle, Ohnstad, Mason, Meyers Assembly Committee on Transportation Ripp (C), Spiros (VC), Thiesfeldt, Weatherston, A. Ott, Sanfelippo, Vorpagel, T. Larson, Swearingen, Macco, Kahl, Danou, Kolste, Bowen, Meyers Assembly Committee on Urban and Local Affairs E. Brooks (C), Hutton (VC), Novak, Quinn, Steffen, Skowronski, Genrich, Young, Subeck Assembly Committee on Veterans and Military Affairs Skowronski (C), VanderMeer (VC), Weatherston, Petryk, Allen, Edming, Nerison, Heaton, J. Ott, Tittl, Hesselbein, Milroy, Sinicki, Goyke, Riemer Assembly Committee on Ways and Means Spiros (C), Macco (VC), Kerkman, Novak, Steffen, Jacque, Katsma, Petersen, Riemer, Zepnick, Ohnstad, Brostoff Assembly Committee on Workforce Development Petryk (C), Weatherston (VC), Murphy, Ripp, Kuglitsch, Katsma, Kulp, Bernier, Brandtjen, Kitchens, Shankland, Kolste, Riemer, Spreitzer, Bowen

Committees For more information go to www.legis.wisconsin.gov Assembly Committees Assembly Committee on Aging and Long.Term Care Weatherston (C), Quinn (VC), Petryk, Nerison, Bernier, R. Brooks, Sargent, Meyers, Brostoff Assembly Committee on Agriculture Nerison (C), Novak (VC), Tauchen, A. Ott, Bernier, Ripp, Tranel, E. Brooks, Kitchens, VanderMeer, Danou, Jorgensen, Goyke, Kessler, Considine Assembly Committee on Assembly Organization Vos (C), Steineke (VC), Knodl, August, Murtha, Barca, Shankland, Jorgensen Assembly Committee on Campaigns and Elections Bernier (C), Vorpagel (VC), Thiesfeldt, Horlacher, Craig, Sanfelippo, Berceau, Zamarripa, Kessler Assembly Committee on Children and Families Rodriguez (C), Gannon (VC), R. Brooks, Vorpagel, Kerkman, Brandtjen, Heaton, Neylon, Johnson, Billings, Kahl, Subeck Assembly Committee on Colleges and Universities Murphy (C), R. Brooks (VC), Rohrkaste, Quinn, Rodriguez, Petryk, Ballweg, Krug, Tranel, Macco, Wachs, Berceau, Billings, Hesselbein, Jorgensen Assembly Committee on Constitution and Ethics Kapenga (C), J. Ott (VC), Jagler, Kremer, Horlacher, Hutton, Kessler, Wachs, Goyke Assembly Committee on Consumer Protection Krug (C), Tittl (VC), Katsma, Neylon, Nerison, VanderMeer, Sinicki, Pope, Young Assembly Committee on Corrections Hutton (C), Brandtjen (VC), Gannon, E. Brooks, Nygren, Kleefisch, Barnes, Pope, Bowen Assembly Committee on Criminal Justice and Public Safety Kleefisch (C), Kremer (VC), Spiros, J. Ott, Rodriguez, Horlacher, Novak, Born, Goyke, Kessler, Zamarripa, Johnson Assembly Committee on Education Thiesfeldt (C), Kitchens (VC), Jagler, Knudson, Rodriguez, R. Brooks, Horlacher, Murphy, Quinn, Hutton, Pope, Sinicki, Genrich, Barnes, Considine Assembly Committee on Energy and Utilities Kuglitsch (C), Steffen (VC), T. Larson, Jacque, Petersen, Weatherston, Tranel, Jarchow, Petryk, Neylon, Zepnick, Kahl, Sargent, Genrich, Stuck Assembly Committee on Environment and Forestry Mursau (C), Krug (VC), Czaja, Kitchens, Swearingen, Edming, R. Brooks, Allen, Mason, Milroy, Hebl, Stuck, Considine Assembly Committee on Family Law T. Larson (C), Bernier (VC), Thiesfeldt, Craig, Mursau, Kleefisch, Hebl, Johnson, Subeck Assembly Committee on Financial Institutions Craig (C), Katsma (VC), Kapenga, Jarchow, Sanfelippo, Born, Ballweg, Weatherston, Murphy, Petersen, Kitchens, Doyle, Zepnick, Genrich, Sargent, Johnson, Brostoff Assembly Committee on Health Sanfelippo (C), Rohrkaste (VC), Edming, Skowronski, Kremer, Tittl, Kapenga, Petersen, Kolste, Zamarripa, Riemer, Subeck Assembly Committee on Housing and Real Estate Jagler (C), Allen (VC), R. Brooks, Katsma, Murphy, Murtha, Young, Genrich, Stuck Assembly Committee on Insurance Petersen (C), Heaton (VC), Gannon, Steffen, Jagler, Petryk, Craig, Tranel, Born, August, Doyle, Danou, Berceau, Kahl, Young Assembly Committee on Interstate Affairs Jacque (Co.C), Billings (VC), Rohrkaste, E. Brooks, Kerkman, A. Ott, Horlacher, Young, Zepnick Assembly Committee on Jobs and the Economy Neylon (C), Krug (VC), Tauchen, Allen, Kulp, Tittl, Kuglitsch, Macco, Rohrkaste, Steffen, Ohnstad, Zamarripa, Barnes, Spreitzer, Stuck Assembly Committee on Judiciary J. Ott (C), Horlacher (VC), Thiesfeldt, Heaton, T. Larson, Kerkman, Wachs, Hebl, Goyke Assembly Committee on Labor Jacque (C), Spiros (VC), Knodl, Kapenga, Kulp, Kuglitsch, Sinicki, Mason, Ohnstad Assembly Committee on Mental Health Reform Tittl (C), Jagler (VC), Ballweg, Novak, Sanfelippo, Rohrkaste, VanderMeer, Rodriguez, Riemer, Sargent, Brostoff, Considine Assembly Committee on Mining and Rural Development Kulp (C), Mursau (VC), Bernier, Novak, Quinn, VanderMeer, E. Brooks, Krug,T. Larson, Kremer, Milroy, Danou, Billings, Considine, Spreitzer Assembly Committee on Natural Resources and Sporting Heritage A. Ott (C), Quinn (VC), Kleefisch, Born, Tittl, Edming, Mursau, Nerison, Ripp, Skowronski, Milroy, Danou, Hesselbein, Shankland, Spreitzer

State Legislature

Party.Dist

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

266.3510 266.8535 266.0484 266.5830 266.6670 266.9174 266.5660 266.5300 266.5670 266.2500 266.7745 266.7505 266.3512 266.3123 266.5400 266.2056 266.0703 266.9170 266.7511 266.2635 266.0751 266.2502 266.2253 266.1627 266.0718 266.5490 266.5810 266.2509 266.8546 266.2512 266.1832 267.8979 266.7513

Phone (608)

126 S 109 S 118 S 317 E 104 S 323 S 211 S 415 S 106 S 3S 122 S 5S 316 S 20 S 219 S 15 S 8S 7S 310 S 10 S 313 S 123 S 22 S 130 S 306 S 206 S 19 S 409 S 108 S 131 S 319 S 127 S 18 S

Office

Mailing address: PO Box 7882, Madison, WI 53707-7882 Assembly email: Rep.[LAST NAME]@legis.wisconsin.gov Assembly Chief Clerk: 608.266.1501

Senator

State Senate

Bewley, Janet Carpenter, Tim Cowles, Robert Darling, Alberta (JFC Co.Chair) Erpenbach, Jon B. Farrow, Paul (Asst Maj Leader) Fitzgerald, Scott L. (Maj Leader) Gudex, Rick (Pres Pro Temp) Hansen, Dave (Asst Min Ldr) Harris Dodd, Nikiya Harsdorf, Sheila (Majority Caucus Chair) Larson, Chris Lasee, Frank G. Lassa, Julie (Minority Caucus Chair) Lazich, Mary (President) LeMahieu, Devin Marklein, Howard Miller, Mark Moulton, Terry Nass, Stephen Olsen, Luther (JFC VC) Petrowski, Jerry Ringhand, Janis Risser, Fred A. Roth, Roger Shilling, Jennifer (Min Leader) Taylor, Lena C. Tiffany, Tom Vinehout, Kathleen (Min Caucus VC) Vukmir, Leah Wanggaard, Van H. (Maj Caucus VC) Wirch, Robert Vacant

Joint Committees

Joint Committee for Review of Administrative Rules Ballweg (Co.C), Nass (Co.C), Knudson (VC), Lasee, LeMahieu, Miller, Harris Dodd, J. Ott, Hebl, Shankland Joint Committee on Employment Relations Lazich (Co.C), Vos (Co.C), Steineke, Nygren, Barca, S. Fitzgerald, Darling, Shilling Joint Committee on Information Policy and Technology Harsdorf (Co.C), Petersen (Co.C), Petryk (VC), Cowles, Roth, Carpenter, Vinehout, Loudenbeck, Barca, Genrich Joint Committee on Legislative Organization Lazich (Co.C), Vos (Co.C), S. Fitzgerald, Farrow, Shilling, Hansen, Steineke, Knodl, Barca, Shankland Joint Legislative Audit Committee Cowles (Co.C), Kerkman (Co.C), Macco (VC), Darling, Lazich, Vinehout, Bewley, Nygren, Sargent, Berceau Joint Legislative Council Ballweg (Co.C), Lazich (Co.C), Darling, S. Fitzgerald, Gudex, Moulton, Petrowski, Wanggaard, Shilling, L. Taylor, Risser, Miller, Vos, Steineke, August, Nygren, Knodl, Murtha, Mason, Barca, Shankland, C. Taylor Joint Review Committee on Criminal Penalties Jacque (Co.C), Wanggaard (Co.C), L. Taylor, Doyle Joint Survey Committee on Retirement Systems Lasee (Co.C), Murphy (Co.C), Marklein, Erpenbach, Kuglitsch, Mason Joint Survey Committee on Tax Exemptions August (Co.C), LeMahieu (Co.C), Tiffany, Carpenter, Swearingen, Hesselbein

WMC at Home and on the Road

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Wisconsin Safety Council Director Janie Ritter, second from left, presented an award to InPro Corporation in Muskego to honor the achievement of 1.1 million hours worked without a lost time incident.

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WMC’s Chris Reader presented to newly elected legislators.

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Kurt Bauer, center, was part of a panel discussing the Right to Work issue to the Milwaukee Press Club. Also pictured here are Steve Lyons and David Haynes of the Milwaukee Journal Sentinel.

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The 2015 WMC Focus on Manufacturing Breakfast held in February focused on energy issues in manufacturing. Wisconsin Public Service Commissioner Ellen Nowak keynoted the morning then joined the panel including Ed Paradowski, Apache Stainless Equipment Corporation; Chris Drees, Mercury Marine; Rob Cowen, Badger Alloys. The panel was moderated by Jim Morgan, WMC Foundation.

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Ed Paradowski, president of Apache Stainless Equipment Corporation in Beaver Dam, was interviewed on Madison's WISC-TV for his support of Right to Work legislation.

WMC’s Wisconsin Business World program visited American Family Insurance in Madison where more than 250 high school students attended the day-long program to learn about free enterprise and the opportunities available in Wisconsin.

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Wisconsin Business Voice

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State Budge WMC asked these legislators to share their thoughts on the State Budget currently being debated.

By Sen. Jon Erpenbach (D – Middleton)

W

e share a set of values in Wisconsin that reach deeper into our lives than the politics of the day. The value of a hard day’s work and doing things right the first time. An honest day’s pay for an honest day’s work. Family and faith are our first priority and we are happy when our neighbors enjoy that same prosperity.

We believe in causes and follow our passions with both practical and compassionate progress. It is not easy to get us to change our minds.

Forever the overachievers we love this Wisconsin Way and we wear it proudly. The last few years in Wisconsin politics have challenged the things we believe about ourselves and how we see others too. Our government has taken the divide and conquer perspective rather than recognizing we all have something of value to bring to the table. It is disappointing at times to find myself and my colleagues deemed the enemy in a state we all love the same. The attitude that someone must be torn down for someone else to rise up is arrogant, short sighted and the poor basic value that put Wisconsin behind our peers in economic growth. You cannot lose the negative connotation that comes with a declaration of war on your

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own people and it will be a challenge for us to bring ourselves back together. Consumer confidence and wage growth are the known predictors of our economy. But when half the state feels ignored and wages stagnate, no one wins.

Reading this you may just say, “That sounds like a sore loser to me.” But the reality is that the voices that elected me to the State Senate carry half of this state. They spend half of the money. Purchase half of the cars. Pray in half of the churches.

Re-train ourselves and our peers at work and in school. Walk down the hall at the veteran’s center or the senior center.

Drive their kids to soccer, camps, music lessons and scout meetings. Punch the clock, work overtime without pay. There are no enemies amongst ourselves. There is no right way or wrong way to move ahead with progress for Wisconsin. The only failure is to move ahead without all of Wisconsin.

Forever an optimist, I see the vision of Wisconsin loud and clear and it doesn’t have a “D” or “R” letter after its name.

Wisconsin will never succeed if we make enemies of our friends and neighbors. The door is always open, we just need to walk in together. BV

Sen. Erpenbach represents Wisconsin’s 27th Senate District which includes parts of Dane, Green, Iowa, Sauk and Columbia counties.

et Process

By Rep. John Nygren (R – Marinette)

O

n February 3, Gov. Walker gave his budget address. His speech officially kicked off “Budget Season” in Madison and over the course of the next few months legislators will roll up their sleeves and get to work on the state budget.

After his address, the governor’s budget proposal was delivered to the Legislature where it was introduced in the budget-writing Joint Finance Committee ( JFC). As Assembly Co-Chair of JFC, I like to remind people this introduction formally moves the governor's plan to the Legislature, where lawmakers – guided by their constituents – can make edits, additions and improvements to the proposal. The governor has provided us with a solid starting point but now it’s the Legislature’s turn to make modifications.

In addition to ongoing priorities such as transforming education, health care reforms and investing in infrastructure, Gov. Walker’s budget contains reforms that will help grow our economy and continue developing our state’s workforce.

These reforms include increased funding for worker training programs, common sense state agency mergers and opportunities for tax credits for developing Wisconsin businesses.

The governor has proposed to expand Wisconsin Fast Forward, a program designed to help reduce the skills gap by offering grants for high-demand programs. These programs include training and hiring of skilled apprentices, youth apprenticeships and K-12 schools that work to graduate students with industry-recognized credentials. Gov. Walker is proposing to increase this grant funding by $10.4 million over the biennium, which will increase accessibility to important worker training programs throughout the state.

The governor’s budget proposal also includes a common sense merger of the Wisconsin Economic Development Corporation (WEDC) and the Wisconsin Housing and

Economic Development Authority (WHEDA). Both of these authorities focus on economic development throughout Wisconsin; therefore, this merger will create a one-stop-shop for those invested in Wisconsin’s economic growth. The new agency will be called the Forward Wisconsin Development Authority, and this authority’s board will solely comprise private sector members in order to better coordinate and focus the mission of the agency.

Developing Wisconsin businesses will see benefits in the governor’s proposal as well, as job creation and business growth remain two of our top priorities this biennium.

Gov. Walker has proposed to merge and streamline two existing tax credits; the Jobs Tax Credit combined with the Economic Development Tax Credit will now become the Business Development Tax Credit. This combination will not only heighten flexibility in business tax incentives, but will streamline the credits and increase simplicity. Incentives including job creation, training, capital investment and headquarters recruitment will benefit from a $10 million general purpose revenue (GPR) annual refundable credit allocation under the Business Development Tax Credit. This is great news for developing businesses around the state.

As with any proposed budget, the legislature will reshape and improve Gov. Walker’s proposed plan as it goes through the legislative process. Contrary to partisan rhetoric, no Legislature has ever rubber-stamped a governor’s proposed budget. Under our watch, the Joint Finance Committee will carefully scrutinize all proposals, including those aimed at job creation and economic growth. Ultimately Gov. Walker will have final say, as he has the power to veto portions of the budget. However, we are confident the work our committee puts into the budget will result in a document that is not only the best for Wisconsin residents, but is also one Gov. Walker will proudly be able to sign. BV Rep. Nygren represents the 89th Assembly District which includes parts of Marinette, Oconto and Brown counties.

Wisconsin Business Voice

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CHAMBER CORNER

Wisconsin Goes to Washington

By Shannon Full

Y

ou have probably heard the cliché, “When you have seen one chamber, you’ve seen one chamber.” This refers to the fact that each chamber of commerce differs based upon the composition of our community and the diversified interests of our members.

One thing I have learned from the 16 years leading a chamber is that many of my members expect our chamber to advocate for legislation to improve the business climate. This advocacy happens in many forms and to differing degrees. However, this (not so) simple activity produces benefits for all businesses and can lead to big breakthroughs for our communities.

Whether your chamber endorses a formal legislative agenda or you simply want to focus on enhancing your relationships with legislators by meeting with them on important issues, we all agree getting our members involved in this process is beneficial to the members and the legislators. This engagement happens at the local level, the state level and the federal level.

I often hear from our elected officials the importance of hearing first-hand from the business community. Regarding our federal delegation, I have learned we get greater results if we not only engage with them when they are here in our district, but if we go to them, to Washington D.C. Chambers all across the country, through business leader visits to Washington D.C., demonstrate the influence they have on the legislative process. This influence is especially important on tough issues where votes are close.

There are many key issues that will be coming up in the 114th

Congress which will include reforms to the healthcare law, funding for transportation projects, corporate and individual tax reform, the international affairs budget and other significant topics. It is critical for the local chambers in Wisconsin, along with our members, to be visible in D.C. Therefore, WMC is working with local chambers throughout the state to put together a “Wisconsin State Business Fly-In” to Washington D.C. I strongly encourage all local chamber executives to promote this event and join your colleagues and business leaders in D.C. for an action-packed agenda of delegation visits, briefings on important business issues, networking with leaders from across the state, and of course, tours for those that want to experience D.C.

Our D.C. Fly In is scheduled in conjunction with the U.S. Chamber of Commerce Small Business Summit June 8-10, featuring national keynote speakers and panels of small business owners from all over the country. Visit www.uschamber.com to learn more about the Summit. As an attendee, you may either attend the Small Business Summit and special Wisconsin Chamber meetings, or just sign up for the Wisconsin-only sessions.

Either way, you will show your support for a pro-business agenda in Washington.

By coming together as a state, we can make a much greater impact on our representatives. They will see we are united in making federal laws more pro-growth and improving America’s competitiveness. By visiting D.C. together, we can demonstrate our collective influence and the strong voice of Wisconsin business. BV

CHAMBER FUN FACT Woodruff World's Largest Penny The World's Largest Penny commemorates a 1953 fund-raising stunt. Dr. Kate Pelham Newcomb implored local school children to save their pennies so that Woodruff could build a hospital.

TV picked up on the story and pennies were soon pouring in from all over the country 1.7 million in all.

Woodruff got its hospital, and the schoolchildren of 1953 are just about ready to enter the new assisted living facility that now lives behind the penny.

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Shannon Full is President & CEO of the Fox Cities Chamber of Commerce and Industry.

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